This is an idea that is gradually spreading to more places around the world – using your mobile phone to draw money from an ATM. Sicap just announced an emplacement of this service in Africa, but it’s a mobile technology that could be useful in any country.
How does it work?
It requires a specially designed ATM to work on, but roll outs of these ATMs are already happening. Effectively, it allows you to charge a cash withdrawal to your monthly mobile bill. So while you’re using an ATM, you actually by-pass your bank account completely. You don’t even need a bank account to use this service.
When you want to withdraw money from the machine, you text the amount of cash you want to your operator. It responds with a one-time code that you enter into the ATM, which spits out the amount you specified.
You can even use this to send money to a friend or family member – all you need to withdraw the cash is the code, so you can send it to someone who needs a quick cash injection.
What we think?
Sicap introduces this service at an operator level – and it can be used as more than just a cash service. Sicap is part of the “banking the unbanked” movement, which aims at providing basic financial services to people in rural areas who have no access to an actual bank. The ATM solution could be used to pay bills through your mobile, for example.
It’s amazing how many different financial channels are opening through mobiles, especially in Africa. Specialised ATMs, designated readers at points-of-sale, Mobile Money and more… these services can and will roll out faster than a bank could possibly build enough branches to cover the same number of people. In Africa, even the most basic of mobile devices is rapidly becoming an entire bank.
