Ericsson Money: the future of mobile money starts now
In what could become an industry game-changer, Ericsson is launching its international money transfer and payment service via both internet and mobile phone. Ericsson Money will make a truly global mobile money solution a reality.
Trials kicked off in September 2010 and have steadily grown in scale from about 50 participants and a single currency to a couple of thousand participants and several currencies.
So how does it work? Users log into the site, open an account and are given an electronic money wallet which they can load with money from pay points in a local store, a post office, a bank or via credit card. They can then send money to any of the six European countries currently participating in the pilot, or to the Philippines, the only non-European country chosen for the trial.
Victor Leong, Head of Portfolio Management, Consumer Services at Ericsson Money Services says there are several benefits for users. "Convenience and cost are clear advantages users see immediately," he says. "The online nature of the process enables it to be considerably cheaper than more labor-intensive retail solutions such as banks and money transfer outlets. Our ambition is to make all elements of the service as convenient and cheap as possible for users."
Leong says the service is also easy to use. "We have designed and tested the service in collaboration with usability experts and with the users themselves during several months of trials."
Unlike many banks, Ericsson Money is easy to join. It has no credit or overdraft facilities, and the electronic wallet only contains as much money as it has been preloaded with. International money-laundering regulations still apply.
Feedback from trial participants has been encouraging. The experience of Malcolm Conlan, who has family in the Philippines, is typical of many users.
"I regularly send money to my relatives and friends in the Philippines, and often find the process of going through the bank very long-winded and tiresome," Conlan says.
"The mobile money service turned out to be very quick and simple. I sent some money which was converted into pesos straight away. The following day my family back home withdrew the money from a local GCASH outlet."
Trialists also have an option to link their electronic wallet to an Ericsson Money debit card and use it in all locations that accept MasterCard.
Operator-provided mobile money solutions will vary depending on market conditions and addressable consumer segments. The service may be provided through a secure internet portal accessed from a PC or a smartphone, or delivered from basic phones using basic interfaces. Independently of access methods, the service aims to make sending money as easy as sending an SMS.
Semir Mahjoub, Head of Ericsson Mobile Money Services, says Ericsson is entering the mobile money market for a mixture of commercial, practical and social reasons.
"The whole telecom community is very focused on mobile financial services, and the market for mobile ‘light banking’ services is expected to be worth around EUR 20 billion (USD 27.12 billion) annually by 2015," Mahjoub says.
"But it’s also very much in keeping with our objectives to enable people in society to develop through telecommunication."
He adds: "Many operators also feel that if anyone is going to do this, it needs to be a company that knows how to build network technology, has global reach, and knows the operators inside out."
Victor Leong says that Ericsson can effectively do the hard work for operators.
"We can easily integrate any operator wishing to deploy the service because we have the presence. We are there already, so we can integrate them very rapidly," he says.
Trials kicked off in September 2010 and have steadily grown in scale from about 50 participants and a single currency to a couple of thousand participants and several currencies.
So how does it work? Users log into the site, open an account and are given an electronic money wallet which they can load with money from pay points in a local store, a post office, a bank or via credit card. They can then send money to any of the six European countries currently participating in the pilot, or to the Philippines, the only non-European country chosen for the trial.
Victor Leong, Head of Portfolio Management, Consumer Services at Ericsson Money Services says there are several benefits for users. "Convenience and cost are clear advantages users see immediately," he says. "The online nature of the process enables it to be considerably cheaper than more labor-intensive retail solutions such as banks and money transfer outlets. Our ambition is to make all elements of the service as convenient and cheap as possible for users."
Leong says the service is also easy to use. "We have designed and tested the service in collaboration with usability experts and with the users themselves during several months of trials."
Unlike many banks, Ericsson Money is easy to join. It has no credit or overdraft facilities, and the electronic wallet only contains as much money as it has been preloaded with. International money-laundering regulations still apply.
Feedback from trial participants has been encouraging. The experience of Malcolm Conlan, who has family in the Philippines, is typical of many users.
"I regularly send money to my relatives and friends in the Philippines, and often find the process of going through the bank very long-winded and tiresome," Conlan says.
"The mobile money service turned out to be very quick and simple. I sent some money which was converted into pesos straight away. The following day my family back home withdrew the money from a local GCASH outlet."
Trialists also have an option to link their electronic wallet to an Ericsson Money debit card and use it in all locations that accept MasterCard.
Operator-provided mobile money solutions will vary depending on market conditions and addressable consumer segments. The service may be provided through a secure internet portal accessed from a PC or a smartphone, or delivered from basic phones using basic interfaces. Independently of access methods, the service aims to make sending money as easy as sending an SMS.
Semir Mahjoub, Head of Ericsson Mobile Money Services, says Ericsson is entering the mobile money market for a mixture of commercial, practical and social reasons.
"The whole telecom community is very focused on mobile financial services, and the market for mobile ‘light banking’ services is expected to be worth around EUR 20 billion (USD 27.12 billion) annually by 2015," Mahjoub says.
"But it’s also very much in keeping with our objectives to enable people in society to develop through telecommunication."
He adds: "Many operators also feel that if anyone is going to do this, it needs to be a company that knows how to build network technology, has global reach, and knows the operators inside out."
Victor Leong says that Ericsson can effectively do the hard work for operators.
"We can easily integrate any operator wishing to deploy the service because we have the presence. We are there already, so we can integrate them very rapidly," he says.
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