Saturday, October 11, 2014

Mobile wallets reach 4.2mn in Q2 CY14

KARACHI: The number of mobile wallets has reached 4.2 million by the end of the second
quarter of 2014 (April- June), registering an increase of 11 percent.
The mobile wallets are banking accounts which are being opened largely by the previously
unbanked population at their nearby shops which are working as branchless banking agents, said
State Bank of Pakistan's (SBP) newsletter on branchless banking here on Thursday. It said that
overall number of branchless banking (BB) transactions grew to 71.1 million valuing Rs 326.1
billion during the quarter; 4% higher in volume and 17% higher in value in comparison to the
previous quarter. Average size of transaction stood at only Rs 4,581.
The volume and average size of BB transactions is a key indicator measuring access to finance
by the unbanked population in the country. The continuous growth of BB transactions reflects
interest and confidence of the common man in this innovative banking service.
Currently, eight BB players with country-wide presence of easy-to-access service delivery
channels are offering an array of services including bill payments, money transfers, governmentto-
persons (G2P) payments, loan repayments, and mobile top ups.
The combined agent network of BB players has increased to 168,615 agents -- registering 14%
growth over the last quarter. While recent growth in agent network is owed to agent-sharing
arrangements among the players, the number of distinct agents is estimated to be around 80,000.
According to the newsletter, G2P payments worth Rs 16.9 billion were disbursed via BB
channels to 5.3 million beneficiaries during April- June 2014 quarter, higher than Rs 15.32
billion disbursed to 4.6 million beneficiaries in the last quarter.
As a result of various initiatives taken by State Bank of Pakistan, branchless banking has been
reaching out to all geographic and economic segments of the country. SBP considers that
branchless banking would grow further and gradually become a significant part of overall retail
banking landscape in Pakistan.
The newsletter covers BB industry events, local and international news, and industry expert
interview. Importantly, the newsletter highlights the progress of an important SBP's initiative to
engage World Bank for drafting a first-ever National Financial Inclusion Strategy for Pakistan.

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