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Saturday, June 13, 2009

Canadian Carriers Team Up To Offer Money Transfer Through Cellphones

The big 3 Canadian mobile phone carriers, Rogers, Bell, and Telus have collaborated to form a jointly owned company called EnStream LP. “The end vision is you can take your billfold or purse and stick it into your phone,” said David Robinson, vice-president of new business planning at Rogers Wireless.

According to the Globe and Mail, "The first step involves software called Zoompass, which customers can download from EnStream to their phones beginning Monday. It will let them draw up to $1,000 a day from their bank accounts and credit cards and send it to other individuals using the same software. Recipients will have instant access to the money, which will be held in trust by HSBC Bank Canada. Recipients will access funds by moving them to their own bank accounts or using a special MasterCard that will be credited instantaneously."

This type of transaction via mobile phones is not new globally, what appears to be new is the collaborative effort of the carriers which could, in my mind, have it's pro's and con's. Perhaps working together will keep the cost to consumers down, but we are talking about cell phone companies and banks here, neither of which have great reputations in that department...