Although Latam banks are willing to provide a multichannel service to their existing clients, several mobile payment services launched by banks and mobile carriers have seen a slow uptake. However, according to Gartner, the momentum started to pick up from late 2010 with a number of events, such as the earthquake in Haiti, which led to a couple of mobile payment services targeting the unbanked population.
Gartner also pointed to Telefonica‘s joint venture with MasterCard in January 2011 to provide mobile financial services to the carrier’s users in 12 Latin American countries. According to Gartner, this approach is different, because indicates a stronger commitment from both parties and may be a vehicle that connects the banking and telecom worlds.
Another event that Gartner highlighted was RegaloCard, a prepaid gift card issuer that is targeting Latino immigrants in the United States, enabling them to buy prepaid cards that can be activated via mobile phones, and which their relatives at home can use at participating merchants. The service is operational in El Salvador and Guatemala, and is expanding to Mexico and Honduras.
