I thought I would write a blog about a recent article I posted on Mobile-Financial.  First because its fresh in my mind and second because I think it is a really interesting announcement.

There are many factors, which impact the success of a particular mobile money transfer (MMT) solution, and everyone is still trying to determine the exact ingredient that made MPesa such an overnight success.

As mobile money transfers gain traction (or fail to do so) in various geographies and in various forms there are a couple of consistent marketplace obstacles that everyone encounters regardless of region of operations.  

1) Cash-In/Cash-Out ability
2) Brand trust
3) Standards and/or the lack of them

In terms of “make or break” points 2 and 3 are debatable in terms of critical importance to the success of a MMT solution but it is hard to doubt the importance of the ability to cash in and out.  

If you think points 2 and 3 are of value (I personally believe Brand Trust/Recognition to be just as important as cash in/out) then it is hard to imagine Western Union not becoming a major player in MMT.

This brings me to the Western Union announcement.   Western Union has enabled a service they refer to as “Account-to-Cash” via the mobile channel.   Financial Institutions can now allow their customers to send funds directly from their existing bank accounts via a mobile phone.  

This seems like the first step towards becoming a key player in MMT.   To learn more about the details of this service, take a quick look at the article below.   

http://www.mobile-financial.com/node/1877/Western-Union-and-M-Com-team-up-to-launch-a-new-
mobile-banking-and-money-transfer-service-called-Mobile-Account-to-Cash

---

Name: Kent McNeil Title: Principal Company: DonRiver View Kent McNeil's Blog