“remittances and innovative transfer mechanisms” marco nicolì payment systems and remittances...

“Remittances and innovativetransfer mechanisms”

Marco NicolìPayment Systems and Remittances SpecialistPayment Systems Development Group

Integrating Migration into DevelopmentRome, Italy | October 2, 2014

In my lifespan…

2

from 1 Mhz on one desk…

…to 1000 Mhz in two fingers

The history of payments

3

from barter…

…to contactless

…but how much hope can we put into technology?

4

5

Ac-count to ac-count

(to any bank)19%

Ac-count to ac-count

(within same bank)

2%

Ac-count

to cash4%

Cash to account8%

On-line17%

Cash to cash46%

Mobile1%

Prepaid card1%

Other3%

Accou

nt to

acc

ount

(to

any

bank

)

Accou

nt to

acc

ount

(with

in sa

me

bank

)

Accou

nt to

cas

h

Cash

to a

ccou

nt

Cash

to c

ash

Credit

/deb

it ca

rd s

ervic

e

Door t

o do

or

Mob

ile s

ervic

e

On-lin

e se

rvice

Pre-p

aid c

ard

serv

ice0%

2%

4%

6%

8%

10%

12%

14%

Status of innovative productsfor remittance services

Remittance Prices Worldwide sample as a benchmark

Average remittance cost per product type

Global average 7.9%

• Objective: promote transparency and competition in the market for remittances and, ultimately, reduce prices for remittance services

• Migrants in champion city and beneficiaries in receiving countries: raise awareness and increase financial education and inclusion

• Remittance Service Providers: promote best practices and dedicated services

• Local and national authorities: facilitate remittance flows and improvements in the market

6

7

• Launched Turin, Italy2013• Launched Montreuil, France2014• Frankfurt, Germany and London, UKLined up• USA, Canada, BalkansPipeline

8

Groundbreaking

Real-time

Transparent

A virtual marketplace

9

10

THANKS!

mnicoli1@worldbank.org

remittanceprices.worldbank.org

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