Originally published: February 12, 2007
Source: Finextra, UK
MasterCard is to work with GSM wireless network operators to pilot an international remittance system using mobile payments technology. The pilot brings together the MasterCard Money Send program and the mobile phone operators of the GSM Association, and will be targeted at people denied access to traditional bank accounts and other banking infrastructure.
The six-month pilot will initially pair India's largest mobile operator Bharti Airtel with the State Bank of India corresponding with a mobile operator and bank sponsor in another country. For the pilot programme, the recipients of funds will be notified of cash transfers via a text message sent over the mobile networks. They will be able to access those funds via debit and prepaid accounts issued by local banks.
Under the agreement with GSMA, MasterCard intends to provide various payment card products as well as the international transaction switching, clearing and settlement for MasterCard Money Send via its global network. Participating MasterCard customer banks will provide access to funds via simple card-based accounts. The banks will manage all fund transfers, and provide regulatory compliance, as well as risk and exception management.
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Related news: GSMA and MasterCard Piloting a Programme to Make it far Easier and Cost-effective to Transfer Remittances Globally