Telco banks on remittance feature to boost mobile wallet usage

MANILA, Philippines - Globe Telecom, Inc., the country's second largest mobile phone player, expects its mobile wallet service to further expand after it teamed up with a leading international money-transfer company. Users of Globe's G-Cash facility are expected to increase as the Ayala-led mobile phone firm tapped Western Union Co. to provide a money transfer system between the telco's subscribers in the Philippines and their relatives in Hawaii and the United Arab Emirates (UAE). “We now have 1.8 million G-CASH users from 1.5 million last March. People now know more of G-CASH and by word of mouth we see users growing," said Rizza Maniego-Eala, president of G-Xchange, Inc. (GXI), a wholly-owned subsidiary of Globe. Under the agreement between both companies, Western Union agents in Foodland stores in Oahu, Maui, Kauai and the Big Island as well as select agents in the UAE can facilitate money transfer to Globe and Touch Mobile subscribers. The subscribers in the Philippines will then receive the remittance through G-Cash. Money senders from Hawaii will be charged $4.50 for every increment of $100 worth of money transfer, and UAE-based senders will be charged $6.50 for every $190 worth of remittance. “This arrangement with Western Union is still in the pilot stage for 12 to 18 months. Normally, during the pilot stage, other countries would be explored and there may be three more countries where money transfer services using G-CASH will be introduced," Eala said. G-Cash was introduced in 2004 to allow Globe and Touch Mobile subscribers to send and receive money, buy items, pay bills, and give donations via text messaging. Western Union, for its part, hopes to broaden the scope of its service to Globe and Touch Mobile subscribers and their loved ones abroad. "We look forward to bringing additional regions into this pilot program in the weeks and months ahead," said Matt Dill, general manager of Western Union Digital Ventures. - GMANews.TV