MICROCAPITAL BRIEF: “Nokia Money” Electronic Wallet Service Launched in India in Effort to Promote Financial Inclusion

Nokia Corporation, a Finnish telecommunications company, has launched Nokia Money, an electronic-wallet service, in an effort to promote financial inclusion of previously “underbanked” people across India [1]. The service enables customers to load cash to their mobile phones at local Nokia dealers. The electronic cash can then be used to make payments for services such as utilities, phone recharging and insurance policies. This service is intended to reduce the “considerable insecurity and inconvenience” that people in rural India face due to limited access to banks.

Customers can also upgrade from the Nokia Money service to the existing money services that Nokia has set up with two Indian banks – Union Bank of India and Yes Bank. These services allow person-to-person money transfers, cash withdrawals and other financial services that have more stringent regulations than Nokia Money.

As of 2010, Nokia reported total assets worth EUR 39 billion (USD 50 billion), total revenues of EUR 42 billion (USD 53 billion) and operating profit of EUR 2 billion (USD 2.5 billion). As of July 2011, Nokia’s market share of the Indian mobile phone market was reported to be 39 percent.

By Nisha Koul, Research Associate

Sources and Additional Resources:

[1] Nokia Conversations, “Nokia Money launches in India,” http://conversations.nokia.com/2011/12/13/nokia-money-launches-in-india/

MicroCapital.org story, December 20, 2011, “MICROCAPITAL BRIEF: Fortis Mobile Money to Enable Mobile Phone Banking for 180 Members of Nigeria’s National Association of Microfinance Banks, Lagos State Chapter (NAMBLAG),” https://www.microcapital.org/microcapital-brief-fortis-mobile-money-to-enable-mobile-phone-banking-for-180-members-of-nigerias-national-association-of-microfinance-banks-lagos-state-chapter-namblag/

MicroCapital.org story, July 7, 2010, “MICROCAPITAL BRIEF: Nokia Launches Microfinance Scheme to Sell Mobile Phones to Poor People in Rural India,” https://www.microcapital.org/microcapital-brief-nokia-launches-microfinance-scheme-to-sell-mobile-phones-to-poor-people-in-rural-india/

MicroCapital.org story, August 24, 2009, “MICROCAPITAL STORY: Nokia and SKS Microfinance to Introduce New Mobile Phone Features for Rural Poor,” https://www.microcapital.org/microcapital-story-nokia-and-sks-microfinance-to-introduce-new-mobile-phone-features-for-rural-poor/

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