What is Mobile Money Transfer?

Mobile Money Transfer or SMS Money Transfer is a service which allows the user to send money to another person using standard text messages securely.

The service offers huge convenience for the mobile subscribers and added value from the operator. The service can be used to make payments, send money home (like for ex-pats) or be used as a substitute for cheques. All the user has to do is just type an SMS with the amount and send it using the mobile’s address book.

How does Mobile Money Transfer work?

Consider the example of two subscribers, A and B who have registered their phone numbers and chosen a PIN.

1)    Subscriber A wants to send Rs.100 to subscriber B. He therefore composes a text message: “#Cash Rs.100″ and sends this message to subscriber B using his mobile’s built-in address book.

2)    Smart Services platform diverts this message to the #Cash Application Server for processing.

3)    Subscriber A is then sent a text message with information to call an IVR (Interactive Voice Response System).

4)    The IVR reads out the transaction to subscriber A, who then confirms the transaction is correct by entering their PIN.

5)    Rs.100 is debited from subscriber A’s bank account as a virtual ATM transaction.

6)    Rs.100 is credited to the bank.

7)    Subscriber B receives a text from subscriber A “I have paid you Rs.100″

The transfer is complete!