In a bid to enhance its remittance services, mobile phone services market leader Smart Communications Inc. has signed an agreement with American mobile roaming solutions firm, Roamware, to reach more Filipino workers overseas.

Smart, the mobile phone operator of Philippine Long Distance Telephone Co., said it expects that through its Memorandum of Understanding (MOU) with Roamware, it could "leverage existing network infrastructure, resources, expertise and international reach, to make mobile money transfers available to mobile operators and financial institutions around the world."

Last February, Smart inked a partnership with the largest bank in Saudi Arabia to reach Overseas Filipino Workers (OFW) in the Middle East, a key source of the remittances to the Philippines.

Mobile phone companies in the Philippines are one of the world's pioneers in marrying global money transfers with mobile technology. Smart Money, the electronic platform of Smart for remittances and other financial services, was the first entrant in 2001.

With OFWs sending home over $15 billion a year, the mobile phone companies, which are on frequent lookout for additional fee-based services to keep subscribers loyal, has joined the lucrative remittance service business. 

Globe Telecoms, which trails Smart as far as subscriber base count is concerned, launched G-cash, its own mobile-based remittance offering through its remittance arm, G-Exchange, only in 2005.

G-cash banks on G-Exchange's partnership with Western Union, a global remittance service already popular to Filipinos. Two months ago, G-Exchange the partnership's pilot offering in Hawaii and United Arab Emirates.

Global reach

The partnership with Roamware is said to be Smart's version of Globe's now wider reach through Western Union.

Smart Money, which is housed under unit Smart Services Hub, could soon tap Roamware's delivery platforms that are linked with more than 350 mobile network operators in over 130 countries worldwide.

"We are pleased to combine Smart's wide network of bank and fulfillment partners with Roamware’s global reach and technology to develop an alternative mobile remittance corridor that is reliable and convenient," said Orlando Vea , Smart's chief wireless services advisor.

Smart did not mention when or where the new remittanc eservice will be piloted.

Similarities, differences

Smart Money and G-cash have more or less similar quick and convenient features, not to mention the substantially lower remittance fees that the volume-based mobile technology that benefit both the sender and recipient.

While both Smart Money and G-cash involves the wireless transfer of money accross countries and operates through the mobile technology, Smart and Globe are both not banks, which are regulated by the central bank for, among others, potential abuses such as money laundering.

Smart Money offers the service in partnership with a bank, while in GCash, the funds pass through G-Exchange Inc., which then deposits the funds in a bank.

This means that the recipient in the Philippines who would like to avail of the Smart Money service need to open an bank account with Smart Money's accredited banks, such as Land Bank and Banco de Oro. Once the remittance is confirmed, both the sender and recipient are notified through a text message.

The recipient can either keep or withdraw the funds in this bank account, or encashed in Smart centers

G-cash, on the other hand, is more friendly to recipients who have mobile phones but do not have accounts in banks or ATMs. The recipient needs to register and assign its mobile phone number under G-Exchange so the recipient could then enjoy the electronic wallet features, such as paying bills, buying prepaid loads, and more.

The recipient can also opt to withdraw the cash through G-Exchange. An automatically generated text alert informs the sender of the fund transfer and the withdrawal from the receiver’s account. -- with Lala Rimando, abs-cbnnews.com/Newsbreak