Unknown to many people in Europe; millions have been using their mobile phones – not just smartphones, but any old basic thing – to transfer money all around the place, just by simple Text Message. It doesn't require an app, costs very little and its growth has been explosive.
That growth has been taking place in Kenya and elsewhere, as more and more people do their banking via their phones rather than the physical branch of a bank. M-Pesa is the leading SMS money transfer system and is operated by Kenya's Safaricom and Vodacom, a joint operation between Vodafone of the UK and South Africa's Telkom.
The idea began when it was discovered in 2002 that people in various African countries were using their mobile phone credit as a substitute for real money, transferring amounts to each other in a form of microfinance.
The M-Pesa service – "pesa" means "money" in Swahili – was launched in Kenya in early 2007 and by the end of 2011 there were some 17 million subscribers. M-Pesa has since been rolled out to other countries in East Africa, as well as South Africa, Egypt, India and Afghanistan. Now it has arrived in Europe.
Romanians got a taste of M-Pesa when it launched there in May 2014. They're able to transfer anything from the equivalent of 19p to just over £5,500 using their phones. Vodafone said at the launch that almost everyone in Romania has a mobile phone but over a third of the 21 million-strong population does not have a bank account.
M-Pesa allows customers to deposit money as well as withdraw it, from an array of agents, as well as to pay bills. Customers can also transfer money to other people, including those who have not signed up for the service, as well as buying phone credit. In some markets, money can be transferred directly to a bank account. Fees for using M-Pesa can be as little as 0.16 of the amount being transferred, with withdrawal costs around 0.47 percent up to 20 percent.
Romanians can go to any of Vodafone's 300 stores around the country to sign up for the service, and expansion plans include agents who will be able to handle cash withdrawals.
Underscoring the power of SMS, including for Text Message Marketing, Vodafone's 16.8 million customers make a total of around £721 million in transactions between people on a monthly basis, according to the telecommunications giant.
That growth has been taking place in Kenya and elsewhere, as more and more people do their banking via their phones rather than the physical branch of a bank. M-Pesa is the leading SMS money transfer system and is operated by Kenya's Safaricom and Vodacom, a joint operation between Vodafone of the UK and South Africa's Telkom.
The idea began when it was discovered in 2002 that people in various African countries were using their mobile phone credit as a substitute for real money, transferring amounts to each other in a form of microfinance.
The M-Pesa service – "pesa" means "money" in Swahili – was launched in Kenya in early 2007 and by the end of 2011 there were some 17 million subscribers. M-Pesa has since been rolled out to other countries in East Africa, as well as South Africa, Egypt, India and Afghanistan. Now it has arrived in Europe.
Romanians got a taste of M-Pesa when it launched there in May 2014. They're able to transfer anything from the equivalent of 19p to just over £5,500 using their phones. Vodafone said at the launch that almost everyone in Romania has a mobile phone but over a third of the 21 million-strong population does not have a bank account.
M-Pesa allows customers to deposit money as well as withdraw it, from an array of agents, as well as to pay bills. Customers can also transfer money to other people, including those who have not signed up for the service, as well as buying phone credit. In some markets, money can be transferred directly to a bank account. Fees for using M-Pesa can be as little as 0.16 of the amount being transferred, with withdrawal costs around 0.47 percent up to 20 percent.
Romanians can go to any of Vodafone's 300 stores around the country to sign up for the service, and expansion plans include agents who will be able to handle cash withdrawals.
Underscoring the power of SMS, including for Text Message Marketing, Vodafone's 16.8 million customers make a total of around £721 million in transactions between people on a monthly basis, according to the telecommunications giant.