El Salvador

Tigo Money processes transactions for US$500mn in 2015

Bnamericas Published: Friday, February 05, 2016

Tigo Money moved around US$500mn in domestic and international remittances, bill payments and other services in 2015. Around 1mn users utilized Tigo's services for their financial transactions.

The main transactions were bill payments to more than 60 service providers, primarily for water and energy, micro finance loans and money transfers, all via cell phone.

International remittances made up 12% of the movements, with domestic remittances and bill payments covering the remaining 88%.

Tigo's VP of mobile financial services, Javier Urdampilleta, expects growth to remain at 60% this year, taking into account the figures from 2015.

"I think the same conditions for further growth are there, and the expectation is that the new legislation (Law of Financial Inclusion) will allow us to execute our investment plan," he said.

One of the company's main strategies is to expand its international remittance services, and is already working with two strategic partners on this plan.

"The volume of international remittances received in this country is very large, but the problem is that people receive it in cash, so transporting it becomes a safety issue for the population. When processed through Tigo Money, it can be received directly on a cell phone from the comfort of your own home," said Urdampilleta.

Tigo intends to increase the number of service providers that accept mobile payments from customers and is right now finalizing the specifics of this technology. The VP also mentioned that one of the main challenges is how to educate its customers in the use of these services through a mobile device.

Regarding the Law of Financial Inclusion, Urdampilleta mentioned that the company is waiting for regulations to be prepared by the Central Bank, and hopes they will be modernized for mobile payment services.

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