MICROCAPITAL BRIEF: Mobile Handset Initiated Transactions (mHITs) of Australia Expands Remittance Service to the Philippines

Australian micropayment service provider Mobile Handset Initiated Transactions (mHITs) announced that it has partnered with micropayment service provider GCash to deploy an “international remittance corridor to the Philippines” that allows account holders in Australiato send funds to mobile wallet users in the Philippines. Recipients do not need a bank account or transfer agent to use the service. As MicroCapital reported in March 2012, mHITs recently extended a similar remittance service to Ghana with MTN Mobile Money. In 2010, mHITs established remittance services to Papua New Guinea with mPOWA and Nepal with eSewa, though the company no longer lists Papua New Guinea as part of its remittance system [1] [2].

Senders incur a fee of AUD 10 (USD 10.5) plus 5 percent of the amount sent per transaction. Senders can transfer between AUD 50 (USD 52.4) to AUD 250 (USD 262) per transaction. Financial and customer data on mHITs are unavailable [3].

As of 2010, the 93 microfinance institutions (MFIs) in the Philippines that report to the US-based nonprofit Microfinance Information Exchange (MIX) have aggregate deposits of USD 454 million, 3.7 million depositors, USD 632 million in loans and 3 million active borrowers.

By Brendan Millan, Research Associate

About Mobile Handset Initiated Transactions (mHITs): Founded in 2004, mHITs is an Australian micropayment service provider that allows users to make purchases and send and receive payments through mobile phones. The mHITs services may be used to send money from Australia to the Philippines, Ghana and Nepal. Senders incur a fee of AUD 10 (USD 10.5) plus 5 percent of the amount sent per transaction. Senders can transfer between AUD 50 (USD 52.4) to AUD 250 (USD 262) per transaction. Financial and customer data on mHITs are unavailable.

About GCash: Setup in 1998 in the Federation of Saint Kitts andNevis, GCash is an international micro payment service that allows a mobile phone to function as a “virtual wallet” to make money transfers at the speed and cost of a text message. Government agencies, utility companies, cooperatives, insurance companies, remittance companies, universities and commercial establishments have agreed to accept GCash as a means of payment for products and services. GCash users may access GCash via their mobile phone or the internet.

Sources and Resources:

[1] Mobile Money Africa: “Mobile Handset Initiated Transactions (mHITs): “Media Release: Mobile Wallet to Mobile Wallet International Remittance Now Available from mHITs Australia.”, http://www.mhits.com.au/releases/MEDIA%20RELEASE%20-%20mobile%20wallet%20to%20mobile%20wallet%20international%20remittance%20now%20available%20from%20mHITs%20Australia.pdf

[2] Mobile Handset Initiated Transactions (mHITs): “Remit.”, http://www.mhits.com.au/send-money/

[3] Mobile Handset Initiated Transactions (mHITs): “Media Release: mHITs powers payments for the unbanked in PNG.”, http://www.mhits.com.au/releases/MEDIA%20RELEASE%20-%20mHITs%20powers%20payments%20for%20the%20unbanked.pdf

MicroCapital.org Article, March 28, 2012, “Mobile Handset Initiated Transactions (mHITs) of Australia Expands Remittance Service to Ghana”, https://www.microcapital.org/microcapital-brief-mobile-handset-initiated-transactions-mhits-of-australia-expands-remittance-service-to-ghana/

MicroCapital Universe Profile: MobileHandset Initiated Transactions (mHITs), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Mobile+Handset+Initiated+Transactions+%28mHITs%29

MicroCapital Universe Profile: GCash, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=GCash

Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/

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