@Himanshugupta: Mobile money transfer is also catching up in Pakistan like other developing countries. Currently a company called EasyPaisa is offering it which is a collaboration between a leading telecom service provider and a bank. So far the service has targeted the rural population working in the cities who have to send funds back home. But their usage and success is limited so far.
You are right in that respect that if a mobile payment is allowed on a postpaid connection then it basically becomes a credit and if there is not sufficient security deposit to cover it then it amounts to overspending.
I agree with you on this. Mobile payments usually function like debit card transactions and that ensures consumers cannot overspend in anyway.
However, a recent change I have seen here is that. Cellphone companies are offering their post paid consumers the facility to pay their utility bills through their cellphones. Once the utility bills are paid their amount is reflected in the montly cellphone bill. In this case, there might be a possibility of overspending if the cellphone companies keep a deposit that is less than the combined cost of the consumer bills.
As I understand the mobile money transfers are like debit cards. The money can be trasnferred if there is a balance in the account. So there is no question of ovespending at any point in time and then get indebted by the high interest cost such as what the credit card companies charge.
I think this is an innovative way to handle cashless transactions at the retail level. For countries where roadside mugging for a few Pesas is a common thing , such new mode of carrying cash is welcome.
In India recently a mobile company has started such service , but it has to catch up the imagination of the people but slowly and surely it will - such systems are very useful for small road side vendors who cannot afford to have the costly link ups with payment gateways and such things.
Mobile money transfers are easy for both the buyer and seller and they can happen on the roadside -that is very important advantage.
Based on your comment, is it also a safe assumption that those same consumers might not have the resources to use the mobile payments in the first place?
I've always been curious about mobile payments. Specially because there's a big percentage of mobile users that not in the bank system and that can take advantage of the mobile network.
The aggressive adoption of technologies ( mobile payment, e-payment, cashless transactions) in Africa for instance is gearing towards financial sectors. This due to failure of governments in providing ICT infrastructure which could aid delivery of technologies like ADSL, fiber and other. Those pose far great challenge which, now open door for quick adoption of an alternative schemes like Wimax, Satellite, 3G/4G.
I think, there are encouraging developments from Africa, though.
Are we beginning to see paradigm shift in they way westerners and developing economies consuming technologies?
I am not sure about the paradigm shift Wale. But I am certain that necessity is the mother of invention. In the developing countries people often have to adopt to technology/innovation to cater their needs for example banking in this case.
Since, they do not have a lot options they tend to adopt to the ones' that are available.
Either the banking system in the developing countries is stuck in the past or is not present in the rural areas. Therefore, a suitable alternate was required for the masses. I think mobile payments got adopted early because even in the rural areas the cellphone penetration is exceedingly high.
Banks cannot sustain the infrastructure and the running costs associated with opening branches in rural areas. Hence, another common thing you will see in the developing countries is mobile banking units. It could be just a grocery store but on the back end it functions like a bank.
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Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
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You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
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