Mexico to have Mobile Payments

(posted August 27, 2008)

Mexico is following in the footsteps of Asia and Europe, and beating the US at enabling new payment systems and methods. 

Folks can now link their savings accounts to their cell phones, so they can use them to make payments in participating vendors, which include quite a few stores, some restaurants, and even taxis.  Thats quite cool.

Most of the big Mexican banks are on board, including Citigroup and BBVA.  But less than a third of the cell phone carrying folks will be covered, since not all mobile operators have signed up yet.  Telefonica SA and Lusacell are on board, but the big gorilla in the market, America Movil, isn't on yet.  And America Movil has 65% or so of the mobile market in Mexico.  So hopefully they'll sign on soon.  If this becomes big, I'm hoping the movement can move north of the border to the good old US of A as well.

The payments, by the way, are supposed to be sent via text messages.  I guess that easier than creating a new app or system.  But it doesn't seem to be the most elegant solution possible.  (But then again, Paypal uses email - and I do love using that)