Asean can take a leaf from Africa's M-Pesa

IN 2007, Safaricom launched M-Pesa, a low-cost money transfer service in Kenya that enabled users (especially those without bank accounts) to send and receive money fast, conveniently and safely through their mobile phones. Users can deposit and withdraw money, and send money to others, including non-subscribers of Safaricom.

Once registered for free at any authorised M-Pesa agent, customers are given an M-Pesa enabled SIM card, allowing them to deposit cash in their account with an authorised agent or through electronic funds transfer. Users can withdraw cash after receiving an SMS informing them of the transaction.

This service has enabled a significant portion of Kenya's population to enjoy financial services, who until quite recently was excluded from the formal banking system. It has also progressed beyond the borders of Kenya, and is in use as far south as South Africa. M-Pesa has also been exported to Afghanistan and India.