The way to go: Why they haven’t gone that way

by Ka Edong on July 27, 2006

(Follow-up to m-Commerce in the Philippines: The way to go)

Yesterday, I proposed a way to make G-Cash as ubiquitous as AutoloadMax. Basically, Globe just needs to apply the same distribution principle of AutoloadMax on G-Cash. Then, there’ll be 800,000 points of cash-in/cash-out throughout the country.

Why hasn’t this solution been implemented? My theories:

a.) Because Globe and Smart Money people haven’t thought of it
b.) Because there’s a roadblock that they see and I don’t (the hell, run through the roadblock!)
c.) Because implementing this puts other businesses in jeopardy. In particular, all domestic remittance services can be killed by implementing the G-Cash remittance service I described. (Why send through LBC when I can send through G-Cash – All I need is to my nearby AutoloadMax retailer and for my recipient to be go to his nearby AutoloadMax retailer.
d.) Because the Bangko Central won’t allow it
e.) Because _________________ (Fill-in the blanks)

But hey, all is fair in love and business.

To Globe, implement this and do a huge service to the Filipino people and our economy. And make a whopping profit at the same time.

And even as the telcos get a whopping profit, the benefits of this service to the customer are still far better than the current costs of domestic remittances and the cost of slower transactions.

ka edong
em-konomist

Comments

  • Any stats on Smart Padala implementation? I have not heard of it for quite some time. BSP regulates remittances, so there are issues there. Also Globe is Atala.. And so is BPI, who is also into remittance…Conflict of interest?

  • Jun,

    Yup, have the same thought: conflict of interest, probably at the decision-maker’s level (i.e. Board of Directors, VPs etc.) .

  • Some news/web clippings:

    ” From August to December last year, Smart Padala has generated more than 45,000 remittance transactions worth P8 million. ”

    – Telcos’ remittance services drive adoption of electronic micro-payment
    http://itmatters.com.ph/news.php?id=102705a
    (circa september 2005)

  • Dagger

    I got this from a Globe insider friend of mine – The reason is that a cash in/cash out outlet by law, has to have a remittance license. This means that each retailer has to go through the licensing process (seminar and a fee) before they can offer the service. Because of that, only a few partners are biting…

  • Hi dagger,

    Hmmm…
    I wonder …

    I don’t recall that to be a requirement. I don’t see that requirement here either: http://www.myglobe.com.ph/gcash/applications.asp

    What I remember was hinahanapan ako ng business permit for the G-Cash retailers na sari-sari store owners in laguna. Para daw Globe can make them a G-Cash partner.

  • may alam ba kayong gcash outlet sa los banos, laguna. i have tried 7/11 and mail and more pero di daw cla ngloload eh.

    thanks.

  • Hi Jaynee,
    Yun ang alam ko, Globe branch sa may Calamba. You can ask the branch kung may alam sila sa Los Banos. You can also call the G-Cash hotline

    * Globe Hotline (tel. 730-1000 or 211 on a Globe Handyphone)

    ka edong

  • J

    You need a remittance license to do cash-in/out. you don’t need a remittance license to accept payments (your regular GCash partner that can only accept GCash payments)

  • Hi J,

    perhaps.

    but of course i wouldn’t need a license if i’m in the underground economy, right?

    won’t need a license if I cash-in/out for my friends like the tricycle drivers or sari-sari store owners in our neighborhood, right?

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