As initiatives focusing on mobile payments develop in different countries of Latin America, financial institutions seek to partner up with major players to capture part of the business and future customers. Likewise, operators also drive customer actions to adopt various forms of mobile financial services. Among the first, Scotiabank stands out as one of the most active in concrete partnerships with mobile companies: has already developed the system in Peru, Puerto Rico and Haiti, and constantly monitors what happens at a regional level. Among operators, Tigo is one of the companies that heavily promotes the use of financial services to their clients.
The case of Scotiabank. It has been developing partnerships with various mobile operators in the region since late 2009. Mainly focused in Central America and the Caribbean, the company developed Scotiamóvil for these markets, active today in Puerto Rico, Dominican Republic, Barbados, Jamaica, Trinidad and Tobago and Belize, among other regional destinations, more linked to tourism. It allows customers to see balances and statements, information on credit card payments and available credit lines, money transfers and bill payments.
One of the most stunning was the one developed in Haiti, along with Digicel, months after the earthquake that devastated that country. Through the agreement the companies launched TchoTcho Mobile, an offer that allows Haitians to deposit and withdraw cash, make money transfers to other mobile users in the country, purchase electronic charges and administrate the TchoTcho account. The project involved an initial stage in which 20,000 customers were included in late November 2010. This group was added to the 130 employees of ONG World Vision to receive salaries through this solution. To open the account one must make a deposit of US$ 2.5. In early 2011 the initiative was recognized, and the companies involved received an incentive of US$ 2.5 million from the Bill & Melinda Gates Foundation to further develop the service.
One thing to take into account: before the earthquake, only 10% of Haitians had employed the services of a bank. Since this solution, more than 35% have bank accounts.
As the system expands in South America, the bank also promotes initiatives in this regard. Last February, Scotiabank announced along with Claro the bmovil service in Peru. This is the first offer made by a subsidiary of America Movil in the segment of via phone payments. In this country it is estimated that, as in the region, 15% of financial transactions will be conducted through mobile phones from here to 2015, according to a report made by the entity. The country has nearly 28 million mobile subscribers and 7 million customers in the banking sector.
Through bmóvil customers can make balance inquiries, recharges, transfers, as well as loan and utility payments, among others. Until now, no more than 20,000 people used the phone to perform these operations through SMS or Internet, the bank study reveals, which anticipates continued growth. Both companies expect one million users of the operator to have a bank account in Scotia this year.
Everything indicates that during the year the Bank will face similar initiatives in Colombia, where it entered in 2010 and where the mobile payments segment continues increasing. Moreover, plans to do the same in Uruguay and Chile: the first because it landed a few months ago, and the second because the company is in an expansion phase.
The case of Tigo. In early 2011, Tigo Colombia allied with Efecty, a company engaged in money orders so they can be carried out over the mobile phone. While the agreement also aims to develop strategies in the "off line" world, the mobile segment aims to use cell phones and smartphones to make various financial transactions and create applications to verify payments in the network.
In Colombia, the interest in mobile money is growing. Of the 48 million existing cell lines, 40% was used to perform various financial transactions. Between 2008 and 2010 there were 50 million transactions made via "mobile banking", according to data released by Scotiabank. Of that total, about 15 million transactions have been carried out during 2010, according to other reports in the sector.
In Paraguay, Tigo has also developed the business aggressively. It has three products: Giros Tigo (to send money to a cell of an individual), Tigo Cash (to save money on the phone and use it like a debit card) and Banca Móvil (oriented to customer loyalty).
In Guatemala and Honduras, the operator owned by Millicom, developed Tigo Money to make transfers via cell phones, a product that was launched earlier this year in both countries. For this purpose, established authorized dealers where one fills in the form with information on who will receive the money, and once the transfer is confirmed, it will be withdrawn by another authorized agent.
In Bolivia it began offering the service in the last days of March. With the name Giros Tigo (Tigo Transfers), the operator allows subscribers to send and receive money and even though it needs the presence of a person to withdraw the money at the points, the transaction can be carried out via the cell phone.
Previously, the company announced in late 2011 that the service would be available in the United States. In this case, the benefit is concentrated for Hondurans who live there and need to send money home, although it is possible to expand the bulk of Latin communities in which Tigo has operations. Anyway, from this country mobile recharges can be made to users that the company has in El Salvador where, for now, the only mobile financial service available is Tigo Te Presta (Tigo Lends You), which allows one to call for a minimum amount of money when the user runs out of credit, which is charged at the next recharge. Everything indicates that in this country, mobile money could be implemented at any moment.