Post on 06-Oct-2018
- 1 -
SYMBIOSIS INTERNATIONAL UNIVERSITY
Faculty of Management
RESEARCH PROPOSAL: Ph.D THESIS
Designing Mobile Money Order: Integrating India post to banking systems through mobile banking
Ashok Bahadur Singh
Guidance
Dr. Madhvi Sethi
Abstract The rapid transition and rollover of banks’ branches towards core banking
solution is yielding the transformation, evolution and integration of different entities to
collaborate and integrate the business strategy on the various fronts such as micro finance
institutions, postal services, insurance, telecom service providers etc. The proposed study
will illustrate mobile money order evolution, present status of India Post money order,
analyse the trend and suggest the approaches for increasing the efficiency of India Post
money order by using mobile banking as medium to integrate banking sectors with India
Post. The proposed mobile money order for India post would enhance the efficiency of
present postal money order in terms of number of factors such as business growth,
convenience, reduced transaction costs, social and economic developments and many
more.
- 2 -
Table of Contents Page No
1. Introduction……………………………………………………………..3
2. Rationale and Significance of Study……………………………….5
3. Aims and Objectives of the Study………………………………......7 3.1 Research Questions…………………………………………………..8
3.2 Research Objectives…………………………………………............8
4. Literature review and motivation for the study………………….9 4.1 Mobile Money Order: Adoption……………………………………...11
4.2 Mobile Money Order: Business Model……………………………...12
4.3 Mobile Money Order: Recent Development on Mobile Money…..15
4.4 Mobile money development and motivations in India…………….16
4.5 Comprehensive analysis of Mobile Money Order for India Post...18
4.6 Postal money order growth statistics (in value)……………………21
4.7 Research Gaps……………………………………………………….21
5. Research Methodologies……………………………………………23 5.1 Sampling Unit…………………………………………………………23
5.2 Sample Size & Sampling procedure……………………………….23
5.3 Data Analysis………………………………………………………..24
5.4 Proposed mobile money order model development and testing...24
5.5 Expected outcome and benefits of proposed mobile money
Order model………………………………………………………….25
6. Scope of the study…………………………………………………...27
7. Estimate of Duration of the Research…………………………….28
8. Risk Analysis………………………………………………………….29 8.1 Expected Risks………………………………………………………29
8.2 Risk Mitigation strategies and contingency plans………………...30
9. Limitations……………………………………………………………..32
10. Conclusion…………………………………………………………….32 References……………………………………………………………………..33
- 3 -
1. Introduction
Out of 1.5 billion users of postal financial services in the world, only 400 millions
are holders of a postal (bank) account, 300 millions of which located in developing or
emerging countries [Anson and Toledano 2010]. As the world moves towards a global
economy, fast and prompt money remittances would be needed for creating efficient
markets and sustainable economic relationships. Dealing with expanded realms of
opportunity, the most successful financial activities will be those that find ways to best
leverage cost effective technologies to harness the banking and postal networks to make
a seamless network of financial products and services. As the economy interlinks and
networks expand, it will be those entities that most efficiently transform, integrate and
adopt the business models in such a way that economy and majority of people gets
benefited [Kaul 2002]. Unlike traditional banks, whose high operational costs exclude
non-profitable customers from the lower strata of society, agents had a pre-existing
relationship with local communities, allowing them to reach out to the poorer population.
Posts could be especially attractive partners for banks, as they offered a trustworthy and
extensive network that was directly accessible to scattered rural communities [Ernesto
2009].1
Over the years, several studies have been imparted by researchers and
academicians to understand the significance of money remittances through different
means of technology products. The regressive motivation has been to lower the
transaction costs, increased efficiency, transparency and customer flexibility and
usability. The wide spread of mobile phone amongst the masses and thrust for seamless
money transfers by integrating the banking sectors to India post through mobile banking
would provide value enhancements or otherwise for both the organisations. The
Government of India and RBI have been, over the years, working for the better synergy
between postal and banking industry for FI (Financial inclusion) program which has been
visible in the National Postal Policy statement of India Post such that “Post will provide
banking and financial transaction services to cater to the needs of the rural population
1 Workshop report: Universal Postal Union (UPU)- Alliance for Financial Inclusion (AFI) workshop on financial inclusion and postal banking held at Berne, 9th -10th November 2009
- 4 -
and help realise the policy of financial inclusion for the “un-banked” rural masses. For
deepening and broadening its financial services, suitable agreements with public/private
sector banks will be forged, so that India Post can offer its unique “last mile”
connectivity to the customers. This will permit it to receive fees for the service rendered
to the banks and other financial entities. Before this, however, adequate infrastructure
and connectivity coupled with application of appropriate software needs to be in place
[National Postal Policy India Post 2009].”
Providing these services to developing world is a difficult task. Traditional postal
money orders are overwhelmingly inconvenient with no flexibility to customers. The
remittance of money order at present requires the person to visit the branch and fill
money order form and then it is sent to the destination address either through physical
delivery of money order forms or in the electronic form like e-MO (electronic money
order or i-MO (Instant money order) buy utilizing the email and internet or other
electronic media. Realizing this challenge much research work is going to induce mobile
banking as medium for integrating with different enterprises and need of the hour is to
consider a holistic approach for rethinking business synergy and models delivering
financial services through mobile banking to the remotest and needy people by using cost
effective means of technology products. The intention of the study is to analyse the
different aspects in mobile money order and identify the research gaps and motivation for
its usability and adoption. Mobile banking based transactions is one of the most current
researched fields in management, especially in banking and financial sectors covering the
studies aimed to Indian contexts such as banking, financial, insurance, postal services,
microfinance etc.
- 5 -
2. Rationale and Significance of Study:- The spread of mobile phones across the
developing world is one of the most remarkable technology stories of the past decade.
Mobile usage has seen an explosive growth in most of the Asian economies like India,
China and Korea. According to the Cellular Operators' Association of India (COAI),1 the
mobile subscriber base in India crossed 806 million in January 2011 and still adding
approx.12 millions subscribers every month. Mobile banking is the evolutionary step
after internet banking where the banks can collaborate with other entities to offer the
latest in banking services in variety of business domains. It is expected that mobile
phones will be the most preferred and convenient device for conducting banking
transactions and emerging as one of the major payment channels in India.
Indian postal system is one of the best distribution channels in the world with
roughly one and a half lakh post offices, most of them in the six lakh villages of India has
immense potential for the distribution of all kinds of products, including financial and
money remittances. For over 150 years post offices have been the most visible and
popular face of the Indian population throughout the country when the postman was the
only person delivering mail and money orders personally at the doorstep of the people.
Now India Post is gearing up to play more comprehensive role by reorienting itself to
meet the expectations of future generations. The Economic Survey 2010,2 which was
presented in the Parliament a day before the general budget was announced, proposed a
number of initiatives such as Out of 25,531 departmental post offices, 12,604 have been
computerized and 1,304 post offices have been networked through leased line with the
National Data Centre and 5,170 post offices have been networked through broadband.
This has enabled the India Post to offer services like electronic Money Order (e-MO),
1COAI Press Release: Upsurge in rural subscribers - as per the subscriber data released by TRAI (Telecom Regulatory
Authority of India), the wireless industry has more than 95% of the telephone subscribers in the country i.e. of the
806.13 Million subs as of 31st January 2011; the industry has contributed more than 771.18 million. Wireless
subscription in urban areas increased from 501.30 million in Dec 2010 to 512.26 million at the end of Jan 2011, rural
subscription increased from 250.89 million to 258.93 million, showing a significantly higher growth trend in rural
subscription of 3.20% compared to the urban subscription 2.19%. 2 The Economic Survey Report: Plan for modernization and growth of India Postal Services
- 6 -
e-payment and instant Money Order (iMO) and has plans to computerize and network all
its post offices in the next two years.
The rapid transition and rollover of banks branches towards core banking solution
is yielding the transformation, evolution and integration of different entities to collaborate
and integrate the business strategy on the various fronts such as micro finance
institutions, postal services, insurance and business agents etc. The India post had been
the oldest and prime source of money transfer for the migrant people and serving
personnel employed away from their homes such as migrant workers, defence personnel,
and other central/state government employees. As per the reforms initiated by
Government of India towards computerization and networking of all the post officers
spread across the country, it gives the opportunities for banks, financial institutions to
utilize the existing setup and resources of post offices spread across the country to
integrate the money remittance through cost effective means of technology.3
The widespread reach and expansion of mobile phones is spearheading as the
effective media to reap the benefits for transferring the money from mobile handsets
without visiting the post offices and branch premises. At present, mobile banking enable
the customers to carry out different types of financial and non financial transactions
between intra or interbank. However these financial transactions require the existence of
bank accounts between the transferor and transferee. However if the mobile banking is
integrated with Indian postal system, this integration model, can be used to transfer the
money from the customers’ account to destination individual and the delivery of the
money would be carried out by the post offices through their internal disbursement
systems. Post Office records show that money orders to the tune of approx 8000 crores
are facilitated by the post offices networks spread across the different states. The use of
digital methods of transactions to remit this money will not only be faster but less
expensive and operationally more flexible.
3 An expert committee report (2009) on “Harnessing the India Post Network for Financial Inclusion”. The
committee was chaired by Ajay Shah, Senior Fellow, National Institute of Public Finance and Policy. The major
recommendation of the committee was a) A savings account hosted on a lightweight banking platform, b) A broad
based payments network, C) A competitive mechanism to deliver micro loans to the poor.
- 7 -
4The Indian postal systems has been planning aggressively to utilize the existing
infrastructure for integrating with various financial and insurance entities to explore the
business strategy for financial and remittance services. This study intends to look mobile
money order as feasible option for accomplishing the business growth for banking and
postal services. In this context, the study will explore the mobile banking as medium to
integrate the banks with India post and provide the impetus for business growth to India
post and finanancial institutions in long term. If mobile banking is integrated with Indian
postal services then no one can deny that mobile money order innovations would be a key
strategy for development of E-banking services and postal money orders, which will
change the business models, range of services and methodologies that are the central to
financial institutions and India post’s money remittances. Realizing this challenge much
research work is going to induce mobile banking as medium for integrating with different
enterprises and the need of the hour is to consider a holistic approach for rethinking
business synergy and models delivering financial services through mobile banking to the
remotest and needy people by using cost effective means of technology products.
3. AIMS AND OBJECTIVES OF THE STUDY: The aim of the study is to find
growth potential in business by development of mobile banking based money orders for
Indian postal systems and banking sectors. The study will also reveal the issues and
challenges involved in the money transfer systems presently prevailing in banking
systems and postal systems visa-vis Mobile banking based Money order system.
The overall study will reveal the comprehensive mobile money order remittance
systems for Indian banking systems and India post developing a commercial and
technical framework. Banks and postal services can use to deploy services that enable
consumers to send and receive low-denomination, high-frequency money orders using
their mobile phones. The framework forms a key element of both bank’s mobile strategy
and the India post’s mobile money order program which aims to use the reach and ease of
mobile money transfer services to expand the mobile financial services market and
stimulate social and economic development. Mobile money transfer services will make it
4 India Post Vision Document 2014.
- 8 -
simple, quick and affordable for more people to send small amounts of money and there
is an opportunity to create and grow a large new market for low-denomination transfers.
3.1 Research Questions:
Presently India is in a zenith stage for technological revolution showing
technological and economic growth & success. Mobile banking based transactions in
payment and remittances are considered a major tool to increase the business growth and
reach to masses. This is a high time to leverage ICT (Information & Communication
Technology) platform for increasing outreach and financial sustainability of India Post
and Banking Sectors.
This thesis will explore the answers of the following questions.
What is scope for business growth in terms of transaction volume and revenue for
India post and banking sectors by using mobile banking based Money Orders?
What is the market size for mobile money order?
What is economic value and developments?
What are issues and challenges for using mobile banking based money order for
migrant workers in industrial areas in India?
3.2 Research Objectives:
To design business models for mobile banking based money order system for
Indian postal services, important issues for its development and
commercialization in India.
To design money remittance and transaction flow model for delivering money
order using mobile banking as medium, based on the customers’ perception
and views on mobile money order.
To explore the opportunities which exist to banking sectors and India post for
improving efficiency of India post money order, increased market & business
growth, economic value addition, social and political motivations for
development of mobile banking based money orders so that the Government
of India supports building this kind of services.
To study the challenges and issues faced by different stakeholders involved in
mobile money order systems.
- 9 -
4. LITERATURE REVIEW AND MOTIVATION FOR THE STUDY
As per Singh Sumanjeet 2009 the payment history starts in the year 1967 when
New York clearing house launched CHIPS (Clearing House Interbank Payment System)
which provides US Dollar funds for transfer and transactions settlements online and in
real time. In the late 1970s, Chemical Bank launched its Pronto system providing 3,000
computer terminals to customers’ home linked to its central computers by telephone. It
offers a range of facilities: balance inquiries, money transfer between Chemical Bank
accounts, and bill payments to selected local stores.. In the year 1985, EDI (Electronic
Data Interchange) extensively used in bank-to-bank payment systems. In 1994, digital
cash trails by DigiCash of Holland conducted online. And in the year 1995, Mondex
electronic currency trails begin in Sweden, England. A real revolution in the meaning of
electronic payment system came with the development of EFT (Electronic Fund
Transfer), a technology that allows the transfer of funds from the bank account of the one
person or organization to that another.
Since 1990s, E-Banking has developed from virtual insignificance to tens of
millions of users worldwide [Abdul, Mohammad and Uddin 2007]. However, E-
Banking is the product of different generations of electronic transactions. The primary
services provided by e-banks are transferring money among one’s own accounts, paying
bills, and checking account balances. Loans, brokering, share trading, service bundling,
and a host of other financial services are being added to these primary services [Dewan
and Seidmann, 2001]. As per study conducted by [Haikel 2006], digital payment
systems are one of the main components of e-commerce, economic and financial
infrastructure. As the technology development took place, the transformation of payment
and money remittances continued incorporating the barriers and challenges for economy
and social sectors. A more recent e-banking development is wireless internet applications
of banking, sometimes called m-banking (mobile banking) [Jiaqin, Mike and Katja
2007]. With the combination of two most recent technological advancement, internet
and mobile phone, a new service (mobile data service) is thus enabled and the first such
wireless internet commercial transaction was performed by the banking industry [Barnes
and Corbitt, 2003].
- 10 -
The payment and money transfer landscape in banking industry is also moving
fast after the government of most of the Asian countries accelerated the financial reform
process. As per [Dag-Inge 2008], the payment and money remittance evolution is
challenging, most of them being stuck with legacy solutions and technology. New
entrants using the internet and innovative ways of creating services and value for clients
are gaining market share (such as PayPal, mcheck, billdesk etc). In retrospect, technology
has created new demands and opportunities that were not expected at the outset, one
example being the internet revolution, and another the explosion of SMS (short
messaging services) traffic on mobile phones. As per prevailing study and research, it has
been observed that the payment system is transforming from the initial stage of cheque
clearing in physical form to electronic forms, moving to electronic forms of payments
using different payment and clearing systems. The wide spread of mobile technology on
other hands has greatly transformed the medium and business models of payments
system. The study conducted by Mahadevan 2009, for improving payment system
efficiency in India has clearly mandated the need of bringing over 1, 55,000 post office
branches and over 169,000 branches of cooperative institutions into the electronic
payment landscape. As per Sorkin 2002, online payment systems can play a role in
reducing transactional and other risks compare to traditional commerce, but relatively
little attention has been paid to the effects of emerging online payment systems.
The study conducted by Boating 2004, that growing demand for person to person
money remittances is paving the way for new remittance options where the confluence of
existing banking infrastructure with new products and technologies such as the internet is
providing new options for more cost-effective and convenient fund transfers. Trends of
money remittances are gradually transferring to mobile based transactions which can be
categorized as m-banking. The study revealed by [Jenkins 2008] shows that importance
of money remittances in the form of ‘mobile money’ is to change the landscape of
payment industry where “mobile money” is the money which can be accessed and used
via mobile phones for transaction and services including domestic and international
remittances, bill payment, payroll deposits, purchase of goods and services etc. The
development and usage of mobile money is in its initial stage. The research survey by
Tobbin 2011, illustrates that the mobile money transfer (MMT) service is an aspect of a
- 11 -
broader concept emerging in the electronic payment and banking industry referred to as
“mobile money”. Even though mobile money has not been well defined in literature it
can be said to include all the various initiatives (long-distance remittance, micro-
payments, and informal air-time battering schemes) aimed at bringing financial services
to the unbanked using mobile technology.
Mobile phone growth is significant step in the evolution in the payments industry
representing another growth opportunity for existing players and new entrants [Edgar
and Dunn 2009]. Technology is bringing nontraditional players into the financial
services markets as the nature of the services is being transformed to propel the rise of a
dynamic financial services industry [Bueno 2008].
4.1 Mobile Money Order: Adoption
As per qualitative study conducted by Mallat 2008, it is found that advantages of
mobile payments relate to the increased availability of the payment service enabled by
the mobile technology and are different from the traditionally highlighted performance
measures such as cost or efficiency [Davis 1989; Rogers, 1995]. From a managerial
perspective the findings suggest that more attention should be paid in particular to
usability and pricing of the service, and creation of critical mass. One viable strategy for
mass creation is to launch the new payment service initially in an area where there is a
large base of established users, such as public transportation, and then gradually develop
the market by including more services and application areas [Poon and Chau, 2001;
Szmigin and Bourne, 1999]. While some researcher, Dahlberg 2007, have concluded
the findings for benefit of mobile banking towards adoption is the ease of use and
security as key components. The study by Donner 2008, indicates that understanding the
role of mobile in developing societies must includes its role in mediating both social and
economic transactions sometimes simultaneously offering a way to lower the costs of
moving money from place to place and offering a way to bring more users into contact
with formal financial systems, m-banking/m-payments systems may prove to be an
important innovation for the developing world. The findings yielded by Ainin, Noor,
Jaafar and Mohezar 2007 on mobile banking adoption in the urban community
illustrates that younger consumers have a greater tendency to adopt innovations, such as
- 12 -
internet banking, this study found that mobile banking is most commonly adopted by
consumers aged between 21 to 30 years. Some researchers have conducted the study on
barriers to mobile banking adoption such as Morna and Peters 2003, where costs,
service innovation, and perception of risks associated with service or products etc. As per
study conducted by Margaret, Craig and Standing 2009, on the social, economic and
cultural context for technology adoption has been found to be very important in
influencing adoption and sustained usage. Social and cultural factors are likely to be more
significant in decisions on personal technologies adopted by individuals compared with
technologies adopted at the organizational level.
Pousttchi and Martin 2007, reveals on assessment of today’s mobile banking
applications from the view of customer requirements, suggests that none of the
technologies can provide a mobile banking solution that works completely without
problems and satisfies the customer. The recommendation to the banks should be not to
focus on one technology only, but to use the advantages of different technologies with
identified target groups. The adoption on mobile banking clearly indicates that the
customer requirements, cost, security and perceived value of risks are the main key
factors which needs to be properly promulgated to enhance the mobile banking based
transactions in other allied services such as mobile money orders.
4.2 Mobile Money Order: Business Model
Although the concept of business model is widely used and seen as important,
there is no generally accepted definition of what a business model constitutes. There are a
lot of authors that give a definition of a business model and propose a brief list of
components that should be included to describe it as explained by Petrovic 2001; a
business model describes the logic of a "business system" for creating value that lies
behind the actual processes. As per Timmers 1998, a business model is architecture for
the product, service and information flows, including a description of the various
business actors and their roles [Giovanni and Pigneur 2003].
As per Pablo and Heijden 2002, the more mobile the actors are, the higher the
geographical barriers, and the less feasible the use of a traditional information system
becomes. This procedure can be summarized by the sentence: “complication of the
- 13 -
location”. Aphrodite and Evaggelia 2001, in study of business models and transactions
in mobile electronic commerce advocated the inclusion of mobile user, mobile portal,
bank and content provider in mobile electronic commerce business model. Patricia,
Claudia, Michel and Cyril 2009, defined the adoptable mobile business model with
special emphasis on environment awareness by considering specific dimensions, e.g.
bandwidth rate, connection state, mobile host re-sources, etc. A major weakness in
current business and market-oriented m-payment research is lack of strictness and
comparability. This lack has been observed, not only by researchers, but also by
practitioners, which contributes considerably to the confusion in the m-payment market
[Key Pousttchi 2008]. One of the studies conducted by Karnouskos, Vilmos, Hoepner, Ramfos and
Venetakis 2003, for illustrating the architecture and business models for secure mobile
payment system (SEMOPS) has emphasized for developing a global mobile payment
system. Its innovative business model is based on two key concepts a) that of cooperation
of banks and MNOs (mobile network operators) and b) that of social trust relationships
since each actor transacts only with his trusted bank or MNO. However the greater need
of business model for mobile based transaction and payment services were attributed to
customer centric services and the business models have been evolving in the same line.
Further study conducted by Petrovic 2008, emphasizes to align, investigate and evaluate
m-Payment services within the framework of customer requirements. However the
progress can be extended to adopt both a quantitative approach to study the perceptions,
attitudes and needs of customers, and a qualitative approach to study the needs of mobile
banking service providers. Fernando, Oliveira and Cruz 2009, has justified the
innovation of business model through means of technology where it will have an
important role in the innovation process. Firstly, the business model innovation is often
dependent upon information technology, where a flexible and agile infrastructure is key
to a dynamic business model. As per the findings of research study and literature review
it is clear that the business models must innovate according to needs of different
stakeholders and must adjust for growth of business. In case of mobile banking and
mobile money order the model is still in the evolving phase but it must have the
following stakeholders in its actor’s role.
- 14 -
1. Banks and financial institutions
2. Mobile network operators
3. Mobile banking service providers
4. Intermediate payment settlement agencies
5. India post
6. Customers and their requirements
Mobile banking in India: - The RBI has promulgated the guideline for mobile
banking in 2008 and there after the certain amendments were carried out in 2009. Some
amended components of RBI’s operative guidelines (2009) on mobile banking are given
as below.
Transaction limit: In amendment of provisions of paragraph 8.1, banks are now
permitted to offer this service to their customers subject to a daily cap of Rs 50,000/- per
customer for both funds transfer and transactions involving purchase of goods/services.
Earlier, such transactions were subject to separate caps of Rs 5000/- and Rs 10000/ -
respectively.
Technology and Security Standard: Transactions up to Rs 1000/- can be
facilitated by banks without end-to-end encryption. The risk aspects involved in such
transactions may be addressed by the banks through adequate security measures.
Remittance of funds for disbursement in cash: In order to facilitate the use of
mobile phones for remittance of cash, banks are permitted to provide fund transfer
services which facilitate transfer of funds from the accounts of their customers for
delivery in cash to the recipients. The disbursal of funds to recipients of such services can
be facilitated at ATMs or through any agent(s) appointed by the bank as business
correspondents. Such fund transfer service shall be provided by banks subject to the
following conditions:-
The maximum value of such transfers shall be Rs 5000/- per transaction.
Banks may place suitable cap on the velocity of such transactions, subject to a
maximum value of Rs 25,000/- per month, per customer.
The disbursal of funds at the agent/ATM shall be permitted only after identification
of the recipient. In this connection, attention of banks is drawn to the provisions of
- 15 -
the Notification dated November 12, 2009, issued by Government of India, under
Prevention of Money Laundering Act, 2002, as amended from time to time.
Banks may carry out proper due diligence of the persons before appointing them as
authorized agents for such services.
Banks shall be responsible as principals for all the acts of omission or commission of
their agents.
As it can be seen from the mobile banking guidelines it provides, the case for mobile
money order where banks have an option to appoint an agent for disbursement of
remittance of money to the recipients. In this model India post would act as an agent for
distribution of mobile money order.
4.3 Mobile Money Order: Recent Development on Mobile Money
Study findings revealed by Merritt 2010, recommends the following actions to policy
planners and implementers for expansion of mobile money systems in USA are:.
The urgent need is required to have close dialogue and exchange of ideas within
the telecom, regulators, banking and finance sectors and government agency
involved in policy makings.
The required technology infrastructure should be established based on the
requirements either in partnership or with existing authorities.
Cross-border mobile remittances may require improved customer-data sharing on
an international basis by central banks, regulators, and law enforcement
organizations, as money transfer businesses are established in multiple geographic
and legal jurisdictions.
Converged regulatory authorities should examine consumer protection risks for
potential gaps in regulatory oversight. As domestic and international mobile
money transfer services grow more prevalent, discussions on risk management
and payment system integrity will be imperative. Dialogue with all industry
stakeholders, including regulators and policymakers, is essential to creating an
environment in which payments risk issues are clearly understood. In this way,
risk-based regulation that is proportionate with the need to encourage innovation
and efficiency in retail payments can be best achieved.
- 16 -
Mobile payment service providers in the United States should be required to
establish programs to mitigate the risk of money laundering. In all the studies illustrated by researchers have more or less emphasized the need for
extending the mobile banking based transactions to other area of institutions engaged in
money remittances and payment systems.
4.4 Mobile money development and motivations in India
After RBI put forth the operative guidelines for mobile banking in India, the
growth in mobile money payments, transfers and remittances is increasing as banking
infrastructure is migrated to core banking solution. The overall growth and impact is still
to be assessed in the Indian contexts as the development is in the initial stage.
In the mean time the trends for mobile banking and mobile payments are
transforming to other spheres of institutions such as microfinance institutions, India post
and financial inclusion programme initiated by the RBI and Govt of India. As the need of
getting full benefits on the investment on technology, it is imperative that the mobile
banking based transactions are extended to other payment systems where it has the
synergy to grow and assist the social and economic developments.
As per the case study done by Ghate 2006, for remittance of money being used by
migrants for sending the money to their dependents. The study findings covered the
following entities involved in money remittance.
1. Banks
2. Post Office
3. Private agencies
4. Hand Carry agencies
5. Shramik Sahjog ( group formed to remit money)
Author evaluated on the following key parameters for each entity involved in money
transfer services to migrants in Surat industrial area in Gujarat.
1. Access
2. Convenience
3. Risk
4. Speed
- 17 -
5. Cost of remitting ( Rs.3500)
It has been revealed in the study that the “Shramik Sahjog” an organization formed
by NGO-MFI for Orissa migrant workers to remit the money to their households from
Surat industrial area. It has been concluded in this study that the migrant workers prefer
Shramik Sahjog for remitting the money compare to postal money orders on the
following two reasons.
India Post Money Order services Shramik Sahajog Money
remittances services
Speed 15–20 days depending on residence
of Remittee. Post office has
introduced bulk electronic
transmission to intermediate centers
around the country but this usually
takes longer because of time taken
between the receiving center and
village post Office. Local post
office is often out of cash.
*2–3 days (procedure
described below)
Cost of
Remitting
Rs.3500
Rs175 plus time costs. At 5%, it is
the most expensive mode. In
practice, remittees have to go to the
local post office to inquire and
collect, which entails time costs
Rs80–100, at 2%
service charge (Rs70) plus
Rs10/20/30 for
doorstep delivery,
depending on whether the amount
is less that
Rs5,000; between
Rs5,000 and
Rs10,000; or greater
than Rs10,000
*To become a member of Shramik Sahajog, one should save Rs100 a month in a
recurring deposit account. Savings and remittance money received in cash is accepted by
the two Shramik Sahajog staff during office hours (morning and evening, 7 days a week
since both staff live on the premises) or during afternoon visits to the main residential
- 18 -
neighborhoods, which are visited according to a fixed schedule. The money is deposited
on the same or, at the latest, next day, in Shramik Sahajog's bank, which allows
simultaneous (and free) crediting of amounts deposited to Shramik Sahajog’s account in
the Orissa branch of the same bank. A savings and money remittance statement is e-
mailed to main office in Orissa twice a week-on Monday and Thursday evenings. On the
following day, the main office withdraws the cash and sends it to the field office in
Tangi, 60 miles away by bus. The field office disburses most remittances within 24 hours
and all within 48 hours. Thus, if a member gives his remittance to the Shramik Sahjog
staff on a Monday or Thursday, the recipient receives it the following
Wednesday/Thursday or Saturday/Sunday (i.e., in 2– 3 days).
From the above it is quite clear that when it comes to transferring money through
postal money order, the migrants in India are substantially challenged. The speed of
delivery and transaction fee charged by India Post is becoming bottlenecks for money
orders growth and other players such as Shramik Sahjog use this opportunities to
undertake the money remittances services using the Information and Communication
technologies with local distribution channels. The remittance needs of the migrant
workers may have to be met by a multi-pronged strategy which uses the existing
infrastructure optimally and in addition, new products should be introduced which
leverage on technology for cost effective and speedy disbursements of remittances.
4.5 Comprehensive analysis of Mobile Money Order for India Post
The study finding for BRIC2 countries by Anson and Toledano 2010 reveals that
the integration of the offer of financial services at some stage appears to be decisive if a
Post is to play a leading role in access to finance in its country while simultaneously
securing its future economic viability. A vast untapped market of almost two billion un-
banked customers 1.1 billion of which already being users of non account-based postal
financial services seems available for the post if it is ready and determined to seize the
opportunities. These ambitions have much better prospects though if they are closely
linked to financial inclusion policies at the government, central bank or financial
regulatory authority level.
2 Brazil, Russia, India and China- Developing countries in current decade
- 19 -
The report of the ‘expert committee on harnessing the India post network for
financial inclusion’ on 16th June 2010, recommends that India post harnesses the rapid
IT and telecom capacity expansion to deliver three basic, integrated products to every
Indian citizen: a savings account hosted on a lightweight banking platform, a broad based
payments network, and a competitive mechanism to deliver microloans to the poor.
The concluding findings by Richard and Wang 2007, reveals that tremendous
change in the payments arena is embodied in many significant innovations introduced by
both nonbanks and banks. In most cases, innovations in payment services build on
existing, traditional payment types; while in some other cases, they provide novel
solutions. The study by Benoit and Seeley 2009 indicates that the trends in the payments
market are impacting the traditional role of the postal operator, and there is little doubt
that in many countries the long-term outlook is a decline in their core payments business.
However, postal operators can develop new growth areas to offset this decline and
reinforce their role within society. To do so, they need to be more proactive, and take a
strong approach to defending their business. There are real opportunities for postal
operators to supplement their existing payments business and step further out and develop
new ways to create value, both financially for the business and socially for their
countries.
As per World Bank & Universal Postal Union Case study and research report
2001, expanding the role of the postal sector to match the acceleration of the internet age
will depend on the ability of posts to manage and run their core business in an effective
manner. Reliable and cost effective postal services, including postal financial services,
must be the foundation for building the future business opportunities. For postal services
in many developing countries, the first step will be to establish this foundation of reliable
core services while simultaneously discovering opportunities to interact with emerging
digital technologies. Costa Rica, Indonesia, Tanzania, Trinidad and Tobago, and Central
and Eastern Europe have shown a positive result through carefully planned and
vigorously implemented postal reform by integration and expansion of their business
domains to other sectors in the society.
The India post have initiated some of the projects such as ‘PROJECT ARROW’
- 20 -
to lay the foundation for a comprehensive, long term transformation of India post. The
project ensures at providing a fast, reliable and efficient postal services to the customers.
The ultimate test of success of this scheme is to provide a better experience to the
customers, both in terms of the ambience of the post office and quality services to the
customers. 1000 post offices have already been covered and proposed to extend the
project to another 4500 post offices. Out of a total of 25531 departmental post offices,
12604 post offices including those in the rural areas have been computerized. 1304 Post
offices have been networked through leased lines so far with the National Data Centre.
Further 5170 post offices have been networked through broad band. The strong IT
base has made it possible to offer a range of e-enabled services to customers as shown
below:
iMO ( Instant Money Order)
An on line web based domestic money transmission service called iMO was
launched in January 2006. This enables the customer to receive money in minutes from
any of the post offices providing this service. Under this service, a person can send
amount from Rs.1000/- up to Rs.50, 000/- in one transaction instantly. The service is
functional in 2175 locations across the country.
eMoney Order (eMO)
The electronic money order, which has been launched in October 2008, facilitates
transmission of ordinary money orders through electronic media without any extra
charge. At present 8003 post offices are offering this service.
E-Payment
E-Payment is a ‘Many to One’ service through which bills (telephone, electricity,
municipal dues, taxes etc.) are paid by customers in Post offices which are then
electronically consolidated and paid to the service provider. The service is presently
available in about 8457 Post offices across the country and will soon be extended to all
12604 computerized Post offices. The Cabinet Committee on Economic affairs has
approved, a project management unit in the department to conceptualize, plan, implement
and monitor the plan schemes for computerization and networking of all the post
offices in the country.
- 21 -
4.6 Postal money order growth statistics (in value) The statistics for the money order for India Post is summarized below in tabular forms
and figures are appended below in Table II and at the same time we reproduce the
cellular subscriber growth in India for the period 2004 to 2010 as given in Table III
Table II - Money Order statistics for India Post since 190-91 to 2008-2009 Sl No Period Money Order value in Rs Crores % increase / decrease
1 1990-91 2937.2 2 2000-01 5851.8 99.23 ( increase) 3 2006-07 7756.7 32.55( increase) 4 2007-08 8363.1 7.81( increase) 5 2008-09 7954.7 -4.88( decrease)
Source: - Annual Reports- India Post
Table III - Cellular subscriber growth in India since Dec 2004 to Dec 2010
Source- COAI (Cellular Operators Association of India)
As can be seen from the above table and graph it is deduced that:-
1. The money order growth is declining and in 2008-09 it reached in negative zone.
2. Mobile subscriber base is increasing exponentially since 2004 and it reached
approx 542 million subscriber in December 2010.
4.7 Research Gaps
Presently India is in a zenith stage for technological revolution showing technological
and economic growth & success. Mobile Banking based transactions in payment and
- 22 -
remittances are considered a major tool to increase the business growth and reach to
masses. This is a high time to leverage ICT (Information & Communication Technology)
platform for increasing outreach and financial sustainability of India post and banking
sectors.
We find that most researchers have emphasized on different aspects in mobile banking
transactions such as adoption, business models, payment procedures, regulatory issues
and many more factors. Considering the limitations and boundary for each country to
streamline the operations of mobile banking based transactions it would not be
appropriate to depend on one factors. The other factors which have come out in the
review is that the mobile money order is in its initial stage and much research is needed
to analyse the usage, adoption and business models. However the major research
motivation emerging out of the review is given as below.
1. There is a immense scope for business growth for India post and banking sectors
by using mobile banking based money orders.
2. Various issues and challenges for migrant workers in industrial areas in India can
be overcome with mobile money order system.
3. The development of business models for mobile money order would be key factor
in mobile payments arena.
4. There would be several opportunities to Indian financial institutions and India
post for other types of money remittance which can be used as catalyst for
financial inclusion.
5. Mobile banking based money order would provide social and political
motivations for rural population in India.
The findings from literature review illustrates that the mobile banking usage is in the
initial stage in India. There is a lot of research still to be conducted on various issues and
platforms of mobile money and mobile banking system. The motivation for the mobile
money order study is in the early stage and its finding would provide an impetus to
different stakeholder in mobile money ecosystem.
- 23 -
5. Research Methodologies
5.1 Sampling Unit
Primary Research
Focused Group Survey
Techniques: - Research Survey
Respondents:- Focused groups
Mode: Questionnaire + interview
Focused group will consist of industry experts, practitioners, regulators, government
officials and mobile banking and money order customers, divided into two groups.
Group 1: This group consists of experts from commercial banks, Indian postal services
and mobile banking solution providers to get insight about using mobile banking for
delivering money order services. A considerable number of questions specific to
architecture, transaction and remittance flow model for use of mobile banking in money
remittance operations will be asked.
Group 2: This group consists of banking customers using mobile banking services for
fund transfers and utility payment systems and postal customers (migrant remittances)
using postal money order services for sending the money to their permanent residence for
discussing about their expectations, experience with current system and suggestions for
mobile banking based money order scheme. The study would be carried out at Pune
district comprising both banking and postal customers.
a) Secondary Research Sources
Extensive secondary research will be conducted about possible mobile banking based
money remittances models being used at different parts of the world and how it can be
best suited to Indian postal systems and financial institutions in India. In addition, money
remittance and transaction flow models for using mobile banking in commercial and
retail banking will be studied to streamline the issues and challenges for business growth
so that this business model is efficient in delivering the money remittance services to
India posts.
5.2 Sample Size & Sampling procedure
The sample size would be in the range of 300 to 400 respondents from mobile banking
customers and money orders users in the Indian post. The sampling would be taken in the
- 24 -
Pune district post officers spread in the industrial area namely Pimpri, Chinchwad, and
Hadapsar area. This area is taken because of manufacturing and construction industry
where the money remittance through post offices is more. The banking customers using
mobile banking would be selected from the banks situated in Pune district where the
sample population would be divided between urban and rural area.
5.3 Data Analysis;
Since it is not possible to make any rigid assumptions about the distribution of the
population from which samples are being drawn, Hence non-parametric tests would be
carried out the for the data collected during questionnaire. The following tests would be
carried out.
1. Descriptive statistical analysis test
2. Chi-square test of independence
3. Chi-square test of goodness of fit
5.4Proposed Mobile money order model development and testing Present mobile banking model
Figure 1
Source: National Payment Corporation of India (NPCI) & Mobile Payment Forum of
India (MPFI) 2010
Customer
MPP
BANK A
Customer Account CBS
SWITCH/ SETTLEMENT
AGENCY
Customer
MPP
BANK B
Customer Account CBS
Each mobile number will be linked to bank account with MMID
Bank A
Bank B
Bank N
Beneficiary mobile number &
amount
- 25 -
Proposed mobile money order model for India Post --
Figure 2
MMID- Mobile Money ID ( 7 digits)
MPP- Mobile payment service provider
Testing and development of the proposed model:-The proposed model would be
developed on prototype framework with rapid development tools for simulation and
testing based on the expert opinions and customers field survey.
5.5 Expected outcome and benefits from the proposed mobile money order model
Business growth: - The ability to move money from the sender to the receiver is the
stumbling block and ability to move it from A to B is called “velocity of money” and
has been a fundamental cornerstone of economic activity. But the issue is exactly how
money transfer is made to happen in an emerging market where the infrastructure is
poorly developed and where very few people have or even want bank accounts.
Mobile money order would be instrumental in capturing more number of customers in
Customer
MPP
BANK A
Customer Account CBS
SWITCH/ SETTLEMENT
AGENCY
Customer
Postal internal MO Delivery system
India Post Payment Gateway
Each mobile number will be linked to bank account with MMID
Bank A
Bank B
Bank N
Beneficiary Name, postal address with Pin code & amount, Mob no as optional
MO delivered through postal internal delivery system and payment
receipt updated back with India Post payment
Gateway as ACK confirmation to sender
- 26 -
due to easy access and prompt services. The number of mobile phone customers if
added would provide the business growth avenue to India post and banking sectors
too.
Convenience: - Many people in emerging economies have to travel far from home to
find work and need to be able to send money back to their families so they can pay
bills or remit the money. The sender has to approach nearest post office with cash to
transfer the money in present money order system where as mobile money order
service is accessible on 24X7 and money can be sent at anytime and anywhere.
Reduced Transaction costs:- As on date the mobile banking provides the lowest
transaction costs amongst all the delivery channels as this removes the physical POP (
point of presence ) for banking and India Post and also ensures a timely and secure
method of transaction.
Social and economic developments:- The World Bank estimates that reducing
remittance commission charges by 2-5% could increase the flow of formal
remittances by 50-70%, boosting local economies. Reducing the cost of each
individual remittance would enable the delivery of lower value remittances than
today’s average transfer value and would result in higher remittance and hence higher
economic activity leading to faster growth. CGAP in its survey has found that the
incomes of rural recipients increased by 5- 30% since when they started using M-
PESA for mobile money transfer system in Kenya. Thus Mobile money order can by
catalyst for social and economic development to India.
Transparency in money transactions:- In the absence of formal banking system,
most of the transactions are cash based giving no audit trail to the regulators. Mobile
money order can bring the transparency in the money transactions by reducing the
cash economy and digitizing the transactions. There would be more visibility on the
money flows as the remittances move from informal channels to formal channels.
Marketing of products:- Mobile money order through cell phone would be
advantageous to the banks as well as India post since it serves as a guide to help and
improve their customer care services. Banks and India post can be in touch with their
clients with mobile banking and also promote and sell their products and services like
- 27 -
credit cards, loans, postal insurance and other financial products etc. to a specific
group of customers.
Reduces risk of Fraud:- a Money remittance through mobile reduces the risk of
fraud. The updation of all the transactions can be communicated through SMS
whenever there is an activity in account. The remittances status would be tracked and
notice is given as soon as the amount is delivered to beneficiary.
Can be catalyst for leveraging Financial Inclusion and Government social
remittance scheme: The India Post integration to banking sectors can boost the
formal savings among the unbanked people and provide the avenues of formal saving.
The different money remittance schemes launched by Government such as old age
pension, NREGA etc can use the mobile money order for remittance to beneficiaries.
6. SCOPE OF THE STUDY
Here is a detailed schedule for key activities to be completed during this research
thesis.
1. Thesis detailed Project Plan
2. Review and analysis of different mobile banking business models and financial
products offered in this domain. Outreach, gaps and challenges.
3. Study of models of mobile banking based money order in the different part of worlds.
4. Focused group field survey.
5. Issues and Motivations for Mobile Banking based Money Order as Business
development tool for India Post and Banking Sector.
6. Issues and Challenges for Mobile Banking based money order in India.
7. Development and testing of mobile money order model based on the expert opinions
Customer surveys.
8. Initial draft of report.
9. Final Draft of report.
10. Presentation.
- 28 -
7. Estimate of Duration of the Research
Proposal
Stage
Literature
review stage
Field
Study/Survey
Model
development ,
testing &
Documentation
Stage
Present
ation
Stage
Total
Time
3 months 3 months 4 months 9 months 3
months
22
months
8. Risk Analysis
This thesis is related to find the real world problem so definitely certain risks are
involved due to uncertainty. Here is a detailed analysis of risk events, probability that is
denoted by ‘P’, effects that is denoted by ‘E’ and their mutual risk index is the
multiplication of probability and Effect of any risk.
8.1. Expected Risk
Sl No Risk Event Probability
(P)
Event (E) Risk Index
(P x E)
1 Precise and accurate
information about mobile
banking based business
models and products are
not available.
2 4 8
2 Customers reluctance to
provide information
related to use mobile
banking and money order
Products in banking and
India post.
3 4 12
3 Delay in response from
Indian banking
organization, India Post
and other companies are
3 4 12
- 29 -
Sl No Risk Event Probability
(P)
Event (E) Risk Index
(P x E)
not willing to provide
outreach statistics.
4 Communication problem
with stakeholders and
delay in getting
appointment time for
focused group
Interview and surveys.
4 4 16
5 Lack of cooperation from
mobile banking
Operators in India.
4 2 8
6 Communication
problems in survey
and unwillingness of
customers to provide
accurate Information.
3 4 12
7 Due to cost and time for
extensive traveling, this
may not be a
homogenous survey for
field works
3 3 9
8 If due to any uncertain
reason one milestone
takes longer time than
Expected.
2 3 6
9 Unanticipated work load 2 3 6
- 30 -
8.2. Risk Mitigation strategies and contingency plans
Sl No Risk Event Mitigations Strategy Contingency Plan
1 Precise and accurate
information about mobile
banking based business
models and products are
not available.
Getting help from Indian
Banking sectors and India
Post.
Redefining Project
Plan & Scope
2 Customers reluctance to
provide information
related to use mobile
banking and money order
Products in banking and
India post.
Using organizational
references to approach
customers.
search for
alternatives not
those who are
originally included
in sample.
3 Delay in response
from Indian banking
organization, India Post
and other companies are
not willing to provide
outreach statistics.
Fixing the problem by
negotiation and using
facilitators to get
information.
Redefining project
plan to change
the area of
working.
4 Communication problem
with
stakeholders and delay in
getting
appointment time for
focused group
Interview and surveys.
Setup meetings well before
time.
Using references to
get time and
plan out telephonic
and e-mail
Conversation.
5 Lack of cooperation
from mobile banking
Operators in India.
Attempt to get publicly
available reports for
Indian statistics
Exploring
alternatives if
possible.
6 Communication
problems in survey
Creating awareness among
poor communities by personal
Changes in
sampling
- 31 -
Sl No Risk Event Mitigations Strategy Contingency Plan
and unwillingness of
customers to provide
accurate Information.
counseling. technique
and using
accidental and
Judgmental
sampling
techniques.
7 Due to cost and time for
extensive
traveling, this may not be
a homogenous survey for
field works
Relying on existing
information collected from
member organizations of
Indian Banking and India Post
For Focused group
discussion
telephonic
interview
technique and
Questionnaire
will be used. For
field survey
area in Pune
industrial sectors,
Banking sectors,
India Post,
Customers in Pune
would be
approached.
8 If due to any uncertain
reason one milestone
takes longer time than
Expected.
Putting extra efforts to keep
delay off.
Make changes and
specify project
plan accordingly.
9 Unanticipated work load Putting extra efforts to keep
delay off.
Make changes and
specify project
plan accordingly.
- 32 -
9. Limitations.
1. The study would be based on random sampling method instead of census method.
2. It may be difficult to obtain necessary information from the customers, mobile and
telecom service providers, industry experts, banking professionals, India post officials
and other stakeholders if they become reluctant to disclose all the information available
with them.
3. Most of the findings on customer’s perception on the usage of mobile banking and
mobile money order would be arrived at Pune; the findings may not give overall view of
customer perceptions and preferences.
4. The proposed model for mobile money order is derived from the existing mobile
banking models being presently used in India by NPCI (National Payment Corporation of
India) and there may be some changes based on the study of processes involved in money
order systems at India Post or regulatory changes happening during the course of study.
5. Due to the explosive growth of the mobile banking application and usage the
generalizations of the facts deduced within the duration of the research could not fully be
realized or relied on. However, the analysis made will be logical, structured and scientific
as possible as giving attention to all these limitations.
10. Conclusion
The primary focus of thesis project is to study and analyse the mobile banking based
money order as business development tools for remodeling the business models for India
Post and Indian Banking Sectors in India. The study will increase outreach of mobile
banking based money order not only for migrant remittances but also for other users in
money remittance services. This will be based on mobile banking based business model
prevailing in Indian Banking Sectors. This is not an easy task without realizing
challenges faced by field survey, focused group discussions and regulatory framework
view about using mobile banking based money orders for India post and Indian banking
sectors.
- 33 -
References
[1]. A Technical Guide to Developing and Delivering Money Transfers, Making Money Transfers Work for Microfinance Institutions, CGAP, March (2008).
[2]. Abrazhevich, D., Electronic Payment Systems: a User-Centered Perspective and Interaction Design, April (2004).
[3]. Alampayand, E., Bala, G., Mobile 2.0: m-money for the BOP in the Philippines, LIRNEasia (2009).
[4]. Almeida, F., Oliveira, J., Cruz, J., Paths to Innovate Business Models in an Economic Downturn, International Journal of Business Management, 4 No.11, (2009).
[5]. Anckar, B., D'Incau, D., Value-Added Services in Mobile Commerce: An Analytical Framework and Empirical Findings from a National Consumer Survey Bill, Proceedings of the 35th Hawaii International Conference on System Sciences, (2002).
[6]. Anson J., Toledano, J., Between Financial Inclusion and Postal Banking: Is the Survival of Posts Also There? – Toledano (Contribution to the 18th Conference on Postal and Delivery Economics, Haikko Manor, Porvoo, Finland, June 2-5, (2010 ).
[7]. Athukorala, P., School of Economics, La Trobe University, The use of migrant remittances in development: Lessons from the Asian experience, 21, Journal of International Development: Vol. 4, No. 5, 511-529 (1992).
[8]. Baddeley, M., Using e-cash in the new economy: an economic analysis of micropayment systems, Journal of Electronic Commerce Research, VOL. 5, NO.4, (2004 ).
[9]. Balakrishnan, M., Improving payment system efficiency in India: Next steps, Journal of Payments Strategy and Systems, Volume 3 Number 4 - 7th October, (2009).
[10]. Barnes, S. J., The mobile commerce value chain: analysis and future developments, International Journal of Information Management 22, 91–108, (2002).
[11]. Bassey, C., Nature, Challenges and Prospects of ePayment Systems in Africa : Digital Money in a Digitally Divided World, Innovation in Money Cultures and Technologies” September 18-19, (2008).
[12]. Bhandari, L., Kale, S., Financial Inclusion and Digital Payments, Indicus Analytics for IAMAI September 1, (2008).
[13]. Bueno, M., An overview of the mobile phone banking industry, IE Business School. Original version, Published by IE Publishing Department, February (2008).
[14]. Byun, S., Feinberg, R., Understanding Consumer Acceptance of Mobile Technology for Financial Service Delivery, American Marketing Association / winter (2007).
[15]. Camenisch, J., Jean-Marc Piveteau, J-M., Markus Stadler, M., ACM 0-89791-892-0/96/03, (1996).
[16]. Camponovo, G., Pigneur, Y., Business model analysis applied to mobile business, (2003).
[17]. Chan, S.S., Fang, X., Brzezinski, Y. Zhou., S. Xu., J. Lam., Usability for mobile commerce across multiple form factors, Journal of Electronic Commerce Research, Vol. 3, No. 3, 2002
[18]. Changing role of Post Offices- Deputy Director (M&C), PIB, New Delhi RTS/VN SS-113/SF-113/09.10.2009. (2009).
- 34 -
[19]. Clark, C., Lubasi, V., Yazar, G., Davis, J.T.E., Jankowski, C., Sick J., Emerging Payments & Policy, Global Electronic Payments, Federal Reserve Bank of Chicago, April (2004).
[20]. Dahlberg, T., Mallat, N., Mobile payment service development – managerial implications of consumer value perceptions, ECIS, (2002).
[21]. Deshingkar, P., Khandelwal R., Farrington, J., Support for migrant workers: The missing link in India’s development, Overseas Development Institute Natural Resource perspectives September (2008).
[22]. Dewan, S.M., Past, Present and Future of M-Banking Research: A Literature Review, The Australian National University, ACIS (2010).
[23]. Dolan, J., Accelerating the Development of Mobile Money Ecosystems, Mobile money summit (2009).
[24]. Donner, J., M-Banking and M-Payments Services in the Developing World: Complements or Substitutes for Trust and Social Capital? (2007).
[25]. Donner, J., Mobile banking and economic development: Linking adoption, impact, and use, Asian Journal of Communication, Asian Media and Communication Center, (2008).
[26]. Dyer, D., PhD, From Potential to Productivity: Remittances, Migrant Organizations, and Development in Mexico, January (2006).
[27]. Edgar., Dun., Realizing the Full Potential of Mobile Commerce Orchestrating Mobile Payments and Money Transfers, Prepared in collaboration with Sybase 365 Mobile Services, March (2009)
[28]. Electronic Payments and Economic Growth, a white paper prepared by Visa International Global Insight Inc. June (2003).
[29]. Flatraaker, D-I., Mobile, internet and electronic payments: The key to unlocking the full potential of the internal payments market, Journal of Payments Strategy & Systems Vol. 3 No. 1, pp. 60-70, (2009).
[30]. Gbolahan, S. O., How Technology is Breaking Traditional Barriers in the Banking Industry: Evidence from Financial Management Perspective, European Journal of Economics, Finance and Administrative Sciences ISSN 1450-2275 Issue 11 (2008).
[31]. Gerard, B., Seeley, J., Payments strategies and opportunities for postal operators around the world, McKinsey on Payments April (2009).
[32]. Ghate, P., Serving Migrants Sustainably: A case study of remittance services provided by a microfinance institution in India for poor, ADB A quarterly newsletter of the focal point for microfinance - Volume 7 Number 1 March ( 2006).
[33]. Ghosh, I., Mobile banking ecosystems in the developing world: a critical review, Doctoral Candidate College of Information Sciences and Technology Pennsylvania State University State College, PA 16801 (2010).
[34]. Goodfiend, M., Money, Credit, Banking, and Payments System Policy, US Payment System (2002).
[35]. Hataiseree, R., Development of E-payments and Challenges for Central Banks: Thailand’s Recent Experience (2008).
[36]. Hataiseree, R., Development of E-payments and Challenges for Central Banks: Thailand’s Recent Experience, Working Paper 2008-01 Payment Systems Department March (2008).
- 35 -
[37]. Herzberg, A., Payments and banking with mobile personal devices, Communications of ACM, Vol. 46. No. 5, May (2003).
[38]. Heyer, A., Mas, I., Seeking Fertile Grounds for Mobile Money ( 2009). [39]. Hichri, H. S., Marhoon, B., Alrubaiy, M., Amirhosein, S., A Payment System for
E-commerce based on Mobile phones and SMS, (2006). [40]. Humphrey, D. B., Pulley. L. B., Vesala. J. M., Cash, Paper & Electronic
Payments, A Cross Country Analysis, Journal of Money, Credit & Banking, Vol 28, Issue - 4, (1996).
[41]. Isern, J., Enjiang. C., Xu, Z., Supply of financial services in China: a study of domestic money transfers, Asia Pacific Journal of Finance and Banking Research Vol. 1. No. 1. (2007).
[42]. Jack, W., Suri, T., Townsend, R., Monetary Theory and Electronic Money: Reflections on the Kenyan Experience, Economic Quarterly—Volume 96, Number 1—First Quarter, pages 83–122 (2010).
[43]. Jenkins, B., Developing Mobile money ecosystems, IFC and the Harvard Kennedy School. (2008).
[44]. Kamal, R., Thomas R., Tinaikar, R., A strategic review of India’s emerging payments market, McKinsey on Payments September (2009).
[45]. Karnouskos, S., Andras, V., The European Perspective on Mobile Payments, IEEE Symposium on Trends in Communications (SympoTIC '04), 24-26 October Bratislava, Slovakia, (2004).
[46]. Karnouskos, S., Vilmos, A., Hoepner, P., Ramfos, A., Venetakis, N., Secure Mobile Payment - Architecture and Business Model of SEMOPS, EURESCOM summit (2003).
[47]. Kimenyi, M, S., Ndung, N, S., Expanding the financial services frontier: lessons from mobile phone banking in Kenya, (2009)
[48]. Kleijnen, M., Kode R., Martin W., An assessment of value creation in mobile service delivery and the moderating role of time consciousness, Journal of Retailing 83 33–46. 1, (2007).
[49]. Kreft, H., Cashing up with mobile Money – The fairCASH way, Sussex University, Brighton, United Kingdom, Euro mGov (2005).
[50]. Kreyer, N., Pousttchi, K., Turowski, K., Standardized Payment Procedures as Key Enabling Factor for Mobile Commerce, Springer-Verlag Berlin Heidelberg, (2002).
[51]. Kugemann, M., UPU-AFI Workshop on Financial Inclusion and Postal Banking Berne, 9-10 November (2009).
[52]. Kuwayama, P. H., Postal Banking in Japan and United States: A Comparative Analysis, September (2010).
[53]. Lee, Y. E., Benbasat, I., A Framework for the Study of Customer Interface Design for Mobile Commerce, International Journal of Electronic Commerce, Vol. 8, No. 3, pp. 79–102, Spring (2004).
[54]. Mallat, N., Exploring Consumer Adoption of Mobile Payments - A Qualitative Study, Helsinki School of Economics, (2006).
[55]. Mallat, N., Matti. R., Virpi K. T., Mobile Banking Services Adopting new and innovative mobile financial applications and service provisioning methods, Communications of the ACM, Vol. 47, No. 5, (2004).
- 36 -
[56]. Mallat, N., Tuunainen, V.K., Exploring Merchant Adoption of Mobile Payment Systems: An Empirical Study, Helsinki School of Economics e-Service Journal (2008).
[57]. Mallon, D.T., Successful Mobile Banking Solutions: Four-Phase Approach, Banking Solutions, (2009).
[58]. Mark, P., David, P., Sarah, R., Banking the Poor via G2P Payments, Focus Note 58. Washington, D.C.: CGAP (2009).
[59]. Mas, I., Siedek, H., Banking through Networks of Retail Agents, Focus notes No-47 May, CGAP, (2008).
[60]. Medhi, I., Ratan, A., Toyama, K., Mobile-Banking Adoption and Usage by Low-Literate, Low-Income Users in the Developing World, (2009).
[61]. Migrant Remittances – A Development Challenge By African Development Bank October (2008).
[62]. Milkau, U., A new paradigm in payments: The strengths of networks, Journal of Payments Strategy & Systems, 30th May, Volume 4, Number 3, (2010).
[63]. Mills, T., Mobile Payments in a Developing Country Global Payment Strategies, Clearing House Payments Company George Thomas, AAP, Radix Consulting Corporation Paris, France February 23 –24, (2008).
[64]. Monetary Theory and Electronic Money: Reflections on the Kenyan Experience. Economic Quarterly—Volume 96, Number 1—First Quarter, Pages 83–122, (2010).
[65]. Morna, L., Mcgoldrick, P., Keeling, K. and Doherty, J., Using Zmet to explore barriers to the adoption of 3 G mobile services, International Journal of retail and distribution management Volume 31 No.6 2003 pp.340.348
[66]. National Postal Policy, India Post, (2009). [67]. Ngugi, B., Pelowski, M., Ogembo, J. G., M-pesa: A case study of the critical
early adopters’ role in the rapid adoption of mobile money banking in Kenya, EJISDC, 43, 3, 1-16, (2010).
[68]. Nicoleta, P. R., Modern Solutions for the banking distribution channels: E-banking strategy, cost and benefits, The Young Economists Journal (2008).
[69]. Ogawara, S., Chen, J.C.H., Chong, P.P., Mobile Commerce: The Future Vehicle of E-Payment in Japan, 2008
[70]. Ondrus, J., & Pigneur, Y., Towards A Holistic Analysis of Mobile Payments: A Multiple Perspectives Approach, (2005).
[71]. Ondrus, J., Pigneur, Y., A Disruption Analysis in the Mobile Payment Market, (2004).
[72]. Parikh, T. S., Designing architecture for delivering mobile information services to the rural developing world, (2007).
[73]. Payment Solutions for modernizing economics Visa Publications (2004). [74]. Payment Systems in India – Vision 2009-12 Vision Document on Payment and
Settlement Systems and Roadmap for Implementation by RBI, (2009). [75]. Pelevic, B., PhD, The microeconomics of migrant remittances, Faculty of
International Economics, Megatrend University, Belgrade September (2009). [76]. Petrova, K., Mobile payment: towards a customer-centric model (2008). [77]. Pihlstrom, M., Perceived value of mobile service use and its consequences,
Helsinki (2008).
- 37 -
[78]. Porteous, D., The enabling environment for mobile banking in Africa Report Commissioned by Department for International Development (DFID) www.bankablefrontier.com May (2006).
[79]. Pousttchi, K., A modeling approach and reference models for the analysis of mobile payment use cases, Electronic Commerce Research and Applications 7, 182–201, (2008).
[80]. Pousttchi, K., Schurig, M., Assessment of today’s mobile banking applications from the view of customer requirements, University of Augsburg (2004).
[81]. Ratha, D., Riedberg, J., On reducing remittance costs, World Bank Washington DC 20433 May 10, (2005).
[82]. Report of the expert committee on harnessing the India Post network for financial inclusion June 16, 2010, New Delhi, (2010).
[83]. Report on migration, remittances and rural development, International Fund for Agricultural Development (IFAD), 2009.
[84]. Rethinking the Business Model- KPMG International Global Business Model Survey EIU/KPMG International (2005).
[85]. Roy, K., Vajda, S., Pal, U., Chaudhuri, B.B., Belaid, A., A System for Indian Postal Automation (2008).
[86]. Ruiz, I., Shukralla, E., Vargas-Silva, C., Department of Economics and International Business, Sam Houston State University, Texas, USA, Department of Economics, Siena College, New York, USA International, Remittances, Institutions and Growth: A Semi parametric Study, International Economic Journal Vol. 23, No. 1, 111–119, (2009).
[87]. Samarajiva, R., Emerging Asia's path to the "Internet Economy": Mobile 2.0, April (2010).
[88]. Serrano-Alvarado, P., Roncancio, C., Adiba, M., Labb, C., An Adaptable Mobile Transaction Model, (IJCSSE) 20, 3, ISSN 0267-6192, (2005).
[89]. Singh, S., Chhatwal, S. S., Yahyabhoy, T. M., Dynamics of innovation in e-banking ECIS (2002).
[90]. Singh, S., Emergence of payment systems in the age of electronic commerce: State of art, Journal of International Business Research Vol. 2. No. 2. (2009).
[91]. Sivanand C. N., Geeta, M., Suleep. Barriers to mobile internet banking services adoption: an empirical study in klang valley of Malaysia, The Internet Business Review Issue 1 – October (2004).
[92]. Sjursen, H., Collaboration between banks and operators for the provision of mobile banking and an assessment of future trends, Electronic ID and Payment, Telenor, 1331 Fornebu, Norway (2007).
[93]. Stanoevska, K., Towards a reference model for M-Commerce applications ( 2003).
[94]. Steve, A., Ali., Christoph., Airtime to Cash: Unlocking the Potential of Africa's Mobile Phones for Banking the Unbanked, Africa Conference Proceedings, (2009).
[95]. Sulaiman, A., Noor, I., Jaafar., Suhana, M., An overview of mobile banking adoption among the urban community, International Journal of Mobile Communications, Vol. 5, No. 2, (2007).
[96]. Sullivan, R. J., Wang, Z., Non banks in the Payments System: Innovation, Competition, and Risk, A Conference Summary, October (2007).
- 38 -
[97]. Surayya, T., Associate Professor National Institute of Financial Management. Managerial Aspects of Emerging Indian Financial System: An Assessment, Icfai Journal of Managerial Economics, Vol. V, No. 3, ICFAI, University Press, (2007).
[98]. The Economic Survey 2010 & Draft Outline of Corporate Plan for India Post 2002
[99]. The Four Incremental Steps Toward advanced mobile service adoption Exploring mobile device user adoption patterns and market segmentation Communications of the ACM, Vol. 50, No. 6 5, June (2007).
[100]. The Payments System and the Market for Interbank Funds FRBNY Economic Policy Review / November (2007).
[101]. The Postal Industry in an internet age Case studies in Postal reforms- World Bank & Universal Postal Union (UPU) (2001).
[102]. Traisnel, J., Douin V., Letort, J-M., Achieving the potential of Mobile Money in emerging markets, Greenwich Consulting in partnership with the GSMA December (2009).
[103]. Tsalgatidou, A., Pitoura, E., Business models and transactions in mobile electronic commerce: Requirement and properties, Computer Networks, 37 (2001)
[104]. Uddin, M.M., Mia, M.A.H., Rahman, M, A., E-Banking: Evolution, Status and Prospects, The Cost and Management Vol. 35 No. 1, pp. 36-48, January-February (2007).
[105]. Valiente, P., Heijden, H. V. D., A method to identify opportunities for mobile business processes, SSE/EFI Working Paper Series in Business Administration No 2002:10 August (2002).
[106]. Walsh, T., The Global Postal Market: Economic, Political and Technological Challenges and Opportunities Personal Perspectives 1990-2020, September (2010).
[107]. Woodward, J., Postal Organisations Expand Financial Services to Capture High-Growth Global Remittances, HSBC’s Guide to Cash, Supply Chain and Treasury Management in Asia Pacific, (2009).
[108]. Yang, J., Whitefield. M., Boehme. K., New issues and challenges facing e-banking in rural areas: an empirical study, International Journal of Electronic Finance, Vol. 1, No. 3, (2007).
[109]. Young, E.L., Benbasat, I., A Framework for the Study of Customer Interface Design for Mobile Commerce, International Journal of Electronic Commerce / Spring, Vol. 8, No. 3, pp. 79–102 (2004).
[110]. http://www.rbi.org.in/ [111]. http://www.mpfi.org.in/ [112]. http://www.indiapost.gov.in/ [113]. http://www.coai.com/ [114]. http://www.pib.nic.in/ [115]. http://www.npci.org.in/