Mobile Money Payment System was only known in Pakistan at the corporate level until last year in July, when Pakistan terribly suffered from the most disastrous flood in the history. After the dreadful earthquake in October 2005, it proved to be another damaging incident for the whole nation as it badly affected the country in many ways besides geographical harming it. During such crises situations, the most important thing that is to be done rather immediately is providing help to the poor victims. The best help for affectees under the situation is to first of all provide them food and shelter. As this will be catering a large part of population so it will certainly require huge involvement of money which needs to be arranged at the earliest.
The mobile phone users in Pakistan must receive an SMS from their cellular service company asking for donations to help the poor victims. For this help, all what the user has to do is to send a blank message or SMS to a number provided already after which an amount will be deducted from the account balance or credit. The amount per SMS is usually no more than Rs.10 and can multiply depending if someone wants to contribute more in the donation. This method known as Mobile Money Payment System, has been used by a few countries in crisis situations and have discovered it to be the quickest and most convenient way of money transfer and fund raising.
All those who might have participated in this campaign may or may not have come across a question that might possibly have risen in their minds. If the balance in their mobile phone account could be used for fund raising in needful situations then why it cannot be used for any other purpose? Now this certainly does not mean the transfer of balance into someone else’s account but it means using the mobile phone balance for the purpose of shopping.
With the payment gateways not available in Pakistan due to lack of government support and other resources, the Mobile money payment system can certainly be of great help in the business industry particularly the e-commerce section. While shopping for our desired products over the web we do often come across items that seem useful to us and at the same time not extravagantly expensive. If such purchases could be made through the Mobile money payment system this will be a big advantage, both for the mobile industry as well as the online shopping.
Although not exactly a payment gateway, but likewise to some extent Telenor Pakistan has introduced a service known as Easypaisa. It allows users to make payments for utility bills and other particulars using the mobile money. Besides, there is a service from UBL known as OMNI that makes mobile phone number effectively into a bank account number irrespective of which service provider they use. If we compare Telenor and UBL, being a cellular company Telenor is facilitated with latest technology. As it has a joint venture with Tameer Bank so it does not have a vast branches network like UBL which has branches in almost every corner in Pakistan, though not technologically sound like Telenor.
Such a Scenario will provide opportunities to other leading banks and cellular companies in Pakistan to tie up and introduce an equally lucrative payment service. This will create a big boom in the e-commerce industry of Pakistan as people will find a reliable alternative for the payment gateway.