The Peruvian National Bank Association ASBANC has chosen Ericsson's Wallet solution to power next-generation mobile financial services.
The group aims to extend services to 2.1 million unbanked Peruvians within 5 years.
Ericsson's solution includes full systems integration in one platform capable of hosting all services from different financial and commercial institutions to secure interoperability. The solution also allows financial service providers to reuse existing assets to bundle secure telecom and financial services.
A report from Ericsson ConsumerLab shows that Latin America has many of the conditions needed for high growth of m-commerce services - including high mobile penetration and a low percentage of banked consumers. Up to 74% of people who are not using m-commerce solutions today would be interested in using such services through their mobile phones, according to the report.
The majority of the population in Latin America – 61% - is unbanked, and there is still a high degree of poverty, the report shows. With almost half of the labour force being casually employed and cash being the most frequent method of payment, there are widespread concerns about security. The Ericsson Wallet Platform gives users the ability to store, transfer and withdraw money in a completely secure environment.
Oscar Rivera, President of ASBANC, says: "We see a great potential for this platform to extend and further strengthen the financial system in Peru. This is a huge inclusive effort done by the financial industry that now can count on the support from very important companies within the private sector."
Carolina Trivelli, Digital Money Project Manager, says: "We are secure that we will reach great achievements with digital money services. With this platform we will connect the unbanked with easy-to-use financial services that they have previously been unable to access."
In emerging markets, like Peru, the development of m-commerce services is beneficial both on societal and individual levels. M-commerce services provide the unbanked with money accounts and open the gates to the formal economy. In Africa and Latin America, this development is already apparent.