MICROCAPITAL BRIEF: YellowPepper Launches Mobile Payments System in Colombia

YellowPepper, a US-based mobile payments provider, recently signed an agreement with 12 unspecified Colombian banks to launch its services in Colombia in an effort to replace cash payments and provide greater access to financial services for the country’s unbanked population. This mobile money system reportedly will enable users to transfer money, perform automatic teller machine (ATM) withdrawals and pay bills using any mobile phone service provider throughout the nation. YellowPepper’s mobile payment system was developed with the help of Credibanco, a Colombian payment processing company. Customers can either link their mobile phones to an existing bank account or register for a “Socia” account, YellowPepper’s mobile payments card that was developed in partnership with Credibanco.

Customers are to be able to perform cardless cash withdrawals at seventy percent of Colombian ATMs. The method by which YellowPepper company’s service will work has not been specified, but other similar services work by sending a temporary code via short message service (SMS), also known as text messaging, to the user, who types the code and their personal identification number (PIN) into the ATM to complete the withdrawal.

As of 2013, YellowPepper provides mobile services to approximately 4 million customers in Bolivia, Colombia, Dominican Republic, Ecuador, Guatemala, Haiti, Mexico, Panama and Peru. Financial information for YellowPepper is unavailable.

By Adrija Vaiciulionis, Research Associate

About YellowPepper:
YellowPepper, founded in 2004, is a mobile payments provider for Latin American countries that is based in the US city of Miami. YellowPepper operates in nine Latin American countries: Bolivia, Colombia, Dominican Republic, Ecuador, Guatemala, Haiti, Mexico, Panama and Peru. In 2010, The International Finance Corporation, (IFC) a private sector arm of the World Bank Group, made a USD 3 million equity investment in YellowPepper. The company has approximately 4 million customers as of 2013. Financial information for YellowPepper is unavailable.

About Credibanco:
Credibanco is a technology, marketing and operations company in Colombia specializing in the country’s payment systems. Financial information for Credibanco is unavailable.

Sources and Additional Resources:

Holley, Elliott “Colombian Mobile Payments Venture Targets 35% Unbanked,” telecoms.comhttp://www.telecoms.com/172942/colombian-mobile-payments-venture-targets-35-unbanked/

MicroCapital article, March 9, 2012, “MICROCAPITAL BRIEF: Telefonica’s “mWallet” to Enable Mobile Payments in South America, Europe,” https://www.microcapital.org/microcapital-brief-telefonicas-mwallet-to-enable-mobile-payments-in-south-america-europe/

MicroCapital article, April 3, 2009, “MICROCAPITAL BRIEF: IDB and Fundacion Telefonica Present Report on Mobile Communications and Access to Financial Services in Latin America and the Caribbean,” https://www.microcapital.org/microcapital-story-idb-and-fundacion-telefonica-present-report-on-mobile-communications-and-access-to-financial-services-in-latin-america-and-the-caribbean/

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