Banks can expand business and hold off competition through cross-border money-transfer services supported by mobile phones, according to analyst firm Gartner.
By working in partnership with mobile operators, banks can build new revenue streams through mobile phone-based international payment services. This was a finding of a Gartner report entitled Mobile Phone Money Transfer Services: Compliance is a Bank's Best Friend.
A system where an international money transfer is initiated from a mobile, with recipients receiving details of the payment and how to access it by phone, could make small regular payments cost-effective.
Gartner said the cross-border money-transfer market is dominated by companies such as Western Union however, mobile payments could change this.
Banks have an advantage in setting up cross border mobile payments because they have a good understanding of international financial regulations, said Christophe Uzureau, principal research analyst at Gartner.
"A mobile phone money transfer service is about creating a supportive channel, not a new payment system. Mobile telephones can be used to leverage existing payment systems and enhance information systems," he said.