Movirtu, the supplier of an innovative network infrastructure solutions for mobile operators servicing rural poor communities, has announced the launch of MXPay, which offers mobile payments to the poor.
Mobile phone technology is making it possible to reduce the cost of providing reliable, affordable financial services to the unbanked, however 80% of the people living below the poverty line do not own a phone or a SIM card required to use these services.
MXPay enables mobile operators to deploy existing mobile payment systems to those people living on less than $2 a day without the need for the user to own a phone or SIM card, thus drastically reducing the cost of entry for these services.
“Everyone is talking about banking the unbanked,” says Andrew Fok, vice-president: engineering of Movirtu. “We are enabling banking of the unphoned."
Movirtu partners with mobile operators who have an existing mobile payment service to launch the service in a specific country. Users subscribe to the mobile payment service and are given a mobile phone number on a paper card which they can use to send and receive remittances using community phones or other people’s mobile phones.
Alternatively, if a subscriber already has a SIM card, they can send and receive payments without the need to swap SIM cards and risk leaving personal data on other people’s phones. NGOs and welfare organizations can also use the service to distribute funds to specific people without the need to buy mobile phones or SIM cards.