Much has been said about the need to bridge the digital divide, however very less has been focused so far on how to get the job done. Hence, it is not surprising that most of the world's population, particularly the vast majority in the developing world, remains unwired, despite the Intel and the Microsoft, the global tout of the World Wide Web, continue to lead as one of the most transformative technologies.
The true prospects held out for making life easier by mobile phones is manifold higher. This is largely due to the rapid spread of mobile phone in the past few years. According to a recent UN report, by the end of last year, there were an estimated 4.1billion mobile subscribers, up from 1bn in 2002. The figure represents more than half of the world's 6.7 billion people, while only a quarter of those use internet.
Additionally, the UN report maintained that while a lack of effective communications infrastructure has traditionally been one of the biggest obstacles to economic growth, developing countries now account for about two-thirds of the mobile phones in use.
The report found that much of the take-up had been driven by money transfer services that allow people without bank accounts to send money speedily and safely by text messages, which the recipient, typically a family member, can cash in at the other end.
M-Pesa money transfer service was launched in Kenya in 2007 and now has 5 million users.
Similarly, Philippines' mobile currency Globe Gcash, which required no bank account or credit card, has over 1.5 million subscribers. In Pakistan, Mobilink has recently launched the Mobile Money Order Service allowing millions of Pakistanis, who send and receive money through the post office, a rare and historic moment to cross over on to the other side of the digital divide. As the largest operator in terms of number of subscribers and networks the prospects held out by Mobilink through this unique service are immense.
Combining the operator's countrywide presence and Pakistan Posts infrastructure, the mobile money order service, Pakistan's first, allows un-banked customers to make domestic money transfers by using only their cell phones with simple SMS commands after a one-time registration, as a 4-digit security code ensures that transactions are secure.
The model followed by Mobilink via partnership with Pakistan Post to develop an alternative money transfer channel is commendable, as it amplifies the potential of the service.
Thousands, in fact millions of Pakistanis may now enjoy the benefits of this additional channel that is reliable and convenient. It is also of great cultural relevance that in Pakistan's socio-economic construct, the bread earners typically work in the metropolitan areas and their families are back home.
With bank penetration as low as 11 percent for the country and next to none in some rural settings, money transfer is primarily done via post. This can be taxing for the women, who are sometimes, unable to step out of their homes due to cultural and safety constraints and must rely on male relatives.
While this may be a technological breakthrough for the end user, the process itself is quite simple and the mobile phone acts as the platform, allowing users to interface with the post office from wherever they are. The benefits are obvious. As opposed to the traditional method, where the money can take weeks to reach depending on how remote the location is, the speed offered by this mode, is incomparable (instant transfer). Further, it gives great convenience and ease of mind to the users, living far way from family and need transfers to meet an emergency back home.
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