International Mobile Remittance

International mobile airtime recharge (also known as international topup/top-up credit) is a remittance transfer service which allows a person in one country to securely electronically transfer or top-up mobile credit to another mobile belonging to a family member or friend abroad.

Users are able to top-up using a variety of payment mechanisms: web browsers, mobile to mobile, ATMs, retail outlets and payment kiosks. The service connects to a cellular network provided by the sender’s mobile phone operator. The international mobile network allows access to the recipient’s mobile operator network.

The IMR transfer works in the following manner:

The IMR sender selects the country, mobile network and number of the recipient.
The desired amount of mobile air time is selected.
The recipient receives mobile air time that they use to make phone calls or as a type of mobile currency.

Background

The short history of IMR is inextricably linked to technological, sociological, financial, economic and cultural factors:

The development of the mobile phone^[1]
Consumer acceptance of mobile credit payment and remittance, originality in the First World than latterly in the Third World^[2]
The contribution of mobile communication payment and remittance services to economic development^[3]
The low use of formal financial or banking services (savings or borrowings) across the Third World population. There are more people with mobile phones than with a bank accounts^[4]
International movement of over 214 million migrant workers^[5] and their need to send financial remittances back to their countries of origin significantly reduces the severity of poverty in developing countries^[6]
The worldwide growth of migrant associations^[7]

Today, IMR airtime or top-up is the most widely used mobile phone remittance service. It accounts for nearly 75% of all mobile remittance transactions.^[8]

Mobile Phone

Motorola was the first company to produce a first generation handheld mobile phone in April 1973.^[9]

The second generation mobile phone introduced SMS or text messaging in the early 90s [citation needed].

Launch of prepaid services in the late 1990s^[10] established SMS as the communication method of choice amongst teenagers. Continual technological improvements in both phones and transmission systems has given many mobile phones abilities approaching those of laptops^[11]

Mobile Credit Payments and Remittance

Mobile payments were trialled in Finland and Sweden in 1998.^[12]

The first commercial payment system to mimic banks and credit cards was launched in the Philippines in 1999.^[13]

Adoption of credit payment services is increasing.

In the USA, 15% of all mobile phone owners made a mobile payment in 2011.^[14]

International mobile money remittance/transfers will exceed $65 billion in 2014.^[15]

The Slow Spread of Banking Services in the Third World

The growth of mobile payment and remittance ballooned in developed First World nations.

However, Third World nations lack the social, transport, telephonic and financial infrastructures necessary to build personal banking.

Consequently, over 50% of the world's population does not have a bank account.^[16]

An estimated 2.5 billion adults lack access to basic formal financial services simply because it is economically unattractive to deploy banking infrastructure.

The growth of mobile phone networks and mobile credit remittance allows Third World peoples to purchase goods and services, without the need for an extensive banking infrastructure.

M-PESA in Kenya is a successful example of mobile money deployment.^[17]

International Movement of Migrant Workers and Émigrés

The International Labour Organisation (ILO) estimates, "over 50 per cent of international migrants today are economically active."^[18]

Migrant workers seek employment abroad to fulfil the need to support self and family.

In several nations, migrants make up a growing part of the workforce.^[19]

Migrant Associations

Culture is "the common reference points of whole peoples, connected to national aspirations or ideals."^[20]

The culture of groups and indeed nations helps reinforce personal desires to maintain longings for home, food, language etc. when living abroad.^[21]

Settling into a new culture is a rewarding experience but keeping in touch with family and friends abroad is gratifying and IMR plays a part in maintaining the ties that bind strong.

Expat advice sources recommend separated family members to make the most of communication technology and mobile phones provide a telecommunication mix of services.^[22]

Émigré associations exist to bring like-minded people together in order to foster cooperation and trust in the diverse cultures that make-up today’s society.^[23]

The number of foreign associations in "adopted" countries is significant.

In the USA, there are 114 Indian Associations listed on the Thokalath website.^[24]

Émigrés establish associations, not only to connect with other émigrés but to develop professional skills.

The Pak Cultural Association^[25] is an example of an association promoting cultural societal aspects.

The Hispanic Dental Association's focus is on Dental career/skills improvements within Hispanic communities.^[26]

Other associations carry political aims.

The National Federation of Filipino American Associations^[27] is a coalition of community organizations and advocacy groups representing some 4 million people of Filipino descent in the United States.

All foreign associations maintain links with their countries of original and are therefore high users of IMR services.

There is currently only one IMR provider promoting émigré and migrant worker associations^[28]

Current Situation

Consumers may use several mobile payment solutions that occupy numerous market channels.

The most common of which are web browsers, mobile phone, ePOS merchant systems, payment kiosks and ATM interfaces.

In less developed countries, the proliferation of retailers selling IMR has increased significantly over the last few years.^[29]

The growth of mobile payment solutions and channel proliferation has simplified IMR use.

It is easy for workers, friends and family living or visiting oversea countries to send IMR from the convenience of their home, mobile device, bank or local retail store.^[30]