Movistar Remesas a Step in the Right Direction

Pyramid Research | Jose Magana | December 9, 2010
Telecom operators, particularly in emerging countries, are scratching their heads about how to leverage their strong positionto participate in the family remittance market. In our recent Insider Mobile Remittances: Network Operators Look to Cash In on a $60 Billion Market, I discussed the sheer size of the opportunity and the challenges that different players are facing with still little clarity on how the value chain — if there is going to be a single one — will look like going forward.
Movistar recently launched its service Movistar Remesas. This service, although is not necessarily a mobile remittance business per se, shows that major players are definitely interested in using their brand, coverage, technology and network to provide services beyond traditional telecommunications. Technologies and devices are changing very quickly, and slowness in action for operators could leave them out from the game. In the particular case of Movistar, the operator uses its solid network in Spain to let immigrants send money to several countries beyond where Movistar has coverage, partnering with MoneyGram and Citi. Solid partners and leverage of its user base in Latin America are definitely key elements that a successful mobile remittance strategy will include.
For more information about mobile penetration in Latin America, click here. For consulting assistance on how to analyze the mobile remittance and payment markets in Latin America, click here.
— Jose Magana, Senior Analyst
Article via Pyramid Research