Report finds mobile banking in Papua New Guinea ‘interesting’

Microfinance Focus, Nov. 27, 2009: Papua New Guinea presents interesting challenges and opportunities for mobile banking, said a recently released report from the UN’s Pacific Financial Inclusion Program (PFIP) and the IFC.

The report on “Building a mobile money distribution network in Papua New Guinea” found that there is great demand for a system that enhances cash safety, including mobile phone transfers and a means to transact, store, and accumulate credit for later use. Currently, carrying and holding cash creates great insecurity for businesses and households, who consistently expressed a high level of interest in cashless means to transport and store money.
The report outlines how a mobile money system might develop in Papua New Guinea, what existing networks it might use for “cash in” and “cash out” services, and how mobile money might help individuals, companies and government alike to lower cost, increase security, and reduce corruption linked to the movement of money.
Mobile phones are proving to be a powerful tool for the delivery of basic financial services to lower income households throughout the world, according to the UNDP, which released the report findings. In just a few years, millions of new mobile phone subscribers are now transferring money, sending international remittances and even saving through mobile phone networks.
The Pacific Financial Inclusion Program (PFIP) is a Pacific-wide programme helping provide sustainable financial services to low income households. It is funded by the United Nations Capital Development Fund (UNCDF), European Union, the United Nations Development Programme (UNDP) and the governments of Australia and New Zealand through their contributions to the Pacific Centre from which PFIP operates.
PFIP runs programmes in Papua New Guinea, Fiji, Vanuatu, Solomon Islands and Samoa, to increase the number of low income and rural households, micro and small enterprises that have on-going access to quality and affordable financial services.

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