Asia • Philippines
Smart Communications: Low-cost
Money Transfers for Overseas
Filipino Workers
Prepared by • Elvie Grace Ganchero (Philippines)
Sector • ICT
Enterprise Class • Large national
Summary
Smart Communications, Inc. (Smart) is a leading wireless telephone services provider in the
Philippines and a subsidiary of the largest and most diversified telecommunications company,
the Philippine Long Distance and Telephone Company (PLDT). Smart has been widely cited
for its innovations in product development targeting the “base of the pyramid” (BOP) market.
This case looks at the latest innovations of the company’s business model, particularly the
products and services that directly respond to the needs of the Overseas Filipino Workers
(OFW). OFW have been instrumental in helping to buoy the Philippine economy through
remittances, totaling US$10.7 billion through formal channels in 2005, an amount estimated
1
to be at least matched by money sent through informal channels. Smart pioneered a cheaper,
faster (in real time) and more convenient way of sending remittances using the short
messaging system (SMS) technology. This, and other product innovations described in this
case, allowed Smart to serve OFW, including the poor segments of the OFW community and
their families. For OFW, low-cost communication and remittance services enable them to
maximize the impact of their hard-earned income.
The Philippine mobile phone market
The Philippines is home to more than 81.4 million people 2 in an archipelago composed of
7,100 islands. Forty percent of the population in 2001 was estimated to live below the poverty
threshold. 3 The archipelagic topography of the country, and the closely-knit family ties that
characterize Filipinos, means that access to communication is very important. Filipinos have
not been able to connect as much as they wish, especially when family members live in
distant places with poor or non-existent telecommunications service. Smart has led
innovations in wireless technology, offering a wide array of cellular products and services in
the Philippines.
Established in 1991 when it acquired its congressional franchise, Smart started commercial
operations in 1993 and since then, has contributed to the growth of the PLDT 4 group. By end
of 2006, the company employed more than 5,000 people. Over the past 14 years, the company
has grown to dominate its industry with an impressive market share of 58 percent (as of yearend 2006). 5 The company has the most extensive and modern digital communications Global
System for Mobile communications (GSM) network and infrastructure in the country,
covering over 99 percent of the population. Smart contributed US$1.542 billion in PLDT
revenue in 2006 6 (see Appendix A and B for more on Smart and PLDT’s Financial Report).
The key success factors have been the following: the technological innovations developed and
1
BSP (2006), Available at http://www.bsp.gov.ph/statistics/spei/tab11.htm
2
CIA World Factbook, July 2006 estimates.
3
The Economist, Pocket World in Figures (2007 Edition), Profile Books Ltd., London.
PLDT is a publicly listed corporation in both Philippine Stock Exchange and the New York Stock
Exchange.
5
PLDT corporate website, investor relations section. Available at www.smart.com.ph
6
2005 PLDT Annual Report.
4
Case Study • Smart Communications: Low-cost Money Transfers for Overseas Workers
2
successfully applied; and a focus on the needs of the lower-income population as the primary
target market. Smart has transformed the cellular phone industry in the Philippines and
changed the way Filipinos connect to each other, from the countryside communities in the farflung barangays 7 to the Overseas Filipino Workers (OFW) living in nearly every country
around the world.
The impact of Smart’s focus on the low-income market to its bottom line is apparent through
its dramatic growth: from 191,000 subscribers in 1999, to over 2.6 million in 2000, to about
24.2 million by the end of 2006. 8 This impressive growth can be attributed to its aggressive
marketing and distribution effort coupled with an unprecedented expansion of Smart’s GSM
network in the country and abroad, and, most importantly, its ability to continuously
introduce innovations to wireless services in response to the needs of a robust but untapped
low-income market. Figure 1 illustrates the growth of the company in relation to the total
growth of wireless industry in the Philippines.
Figure 1: Smart Subscribers Growth versus Competitors (1999-2006)
45,000
18%
Number of subscribers (000)
40,000
4% Sun
6%
Smart
Smart takes
takes
GSM
GSMMarket
Market
leadership
leadership
35,000
30,000
5%
4%
48%
TNT
TNT
launched
launched
14%
22.5M
51%
44%
12%
10,000
46%
9%
7%
6%
1%
42%
1.3M
12% Touch
5%
45%
44%
5.4M
44%
13%
15.2M
121% 11.9M 13%
41% Smart
44%
20,000
15,000
17% Piltel
34.7M
33.0M
14%
25,000
5,000
41.8M
33%
38%
26% Globe
27%
33%
0
1999
2000
2001
2002
2003
2004
2005
2006
Source: Smart Communications
FINDING A UNIQUE MARKET POSITION
Smart offered GSM in 1999, five years after its main competitor, Globe Telecommunications
(Globe). Before 1999, Smart offered an analog service. “In a way, coming a bit late in the
marketplace allowed us to study and understand the dynamics of the market better,” said
Smart’s President and CEO, Mr. Napoleon Nazareno. One of the key challenges that the
company wanted to address early on was the serious lack of access to telecommunications in
7
Barangay is the second smallest political unit for local governance in the Philippines, sitio being the
smallest.
8
Source: PLDT MD&A
Case Study • Smart Communications: Low-cost Money Transfers for Overseas Workers
3
the country. The advent of mobile phone technology presented an opportunity to address the
problem; however, in 1993 the high cost of mobile handsets and subscription rates meant
cellular was unaffordable to the majority of the population. Globe products and services
centered on the needs of higher-income population segments, mainly business executives and
professionals, until Smart challenged that business model.
Smart developed its business model around the corporate mantra “to make mobile phones as
affordable and accessible to as many Filipinos as possible”. Looking back, “the mantra
provided us direction, inspiration, and an incredible amount of creativity,” said Mon Isberto,
PLDT and Smart’s Public Affairs Group Head. “Our drive to broaden the market for cellular
phones defined our ‘bottom of the pyramid’ orientation. We changed the old mindset that
mobile phones were only for affluent people on the go. We defined the market as everyone
looking for affordable telephone service, including the large number of people who had been
waiting for years for a landline phone,” Mr. Isberto added.
The leadership of the company had the foresight to see the significant business opportunity in
targeting the untapped potential of the low-income populations as its primary market segment.
In the Philippine context, where access to telecommunication was a perennial problem, this
business model served as a subtle form of social inclusion of the poor. Smart’s strategy was
then an uncharted approach in the Philippine business environment. See Appendix C for
Awards and Recognition received by the company for its innovative products and services.
REACHING THE MARKET OF THE MAJORITY
One of the key factors of success of the company was its ability to understand the needs of its
target market. The primary barriers in reaching the low-income market included affordability
of wireless products and services, as well as the ability of the poor to comply with the
requirements needed to own a mobile phone, for example credit-worthiness. In 1996, the
company launched Smart BillCrusher, the first pre-paid wireless service in the country that
enabled users to access wireless service without any documentation. Until BillCrusher,
applicants were required to produce documents to establish their financial status, such as a
credit card, utility bills, proof of employment, a three-month pay slip, or income tax
certification. In October 1999, the company introduced Smart Buddy, its prepaid GSM
service that enabled subscribers to purchase airtime cards at an affordable cost, in
denominations of 6, 10, and US$20. By May 2003, Smart further increased affordability with
Smart Load, a revolutionary over-the-air, micro, prepaid, top-up service that offered units as
low as US$0.60.
Napoleon Nazareno, President and CEO of Smart Communication, described the birth of
Smart Load in the following way, “The idea for that revolutionary product was born when I
had lunch with some of our employees at the company canteen; as I was having chicken soup,
one of our field salesmen asked what turned out to be the right question: Why can’t we sell
phone credits in very small amounts - like sachets for soap or shampoo? Our lowest-priced
phone card at that time was 300 pesos, roughly US$6. Affordable, yes. But it was too high for
many Filipinos”.
Case Study • Smart Communications: Low-cost Money Transfers for Overseas Workers
4
The economies of scale in the low-income market allowed the company to lower the price of
subscription rates and handsets, thereby making their services more accessible to a larger
number of people. Handsets first priced at over US$100 became available at less than US$50,
as used units became available in the market. The success of Smart Buddy, Smart Pasa Load
(and its predecessor Smart Load), as well as Smart Money gave the company the confidence
to further explore the needs of the low-income market (see Appendix D List of Smart
Products and Services). Most recently, Smart looked at OFW and their families as an
opportunity for further growth in an underserved market.
Box 1: Key Innovative Products from Smart
Smart Load: Connecting people in massive proportions
Since the launch of Smart Buddy, the company continuously developed a series of
cutting-edge innovations directed towards low-income customers. In May 2003, Smart
Load was launched. It was an over-the-air prepaid reloading service offered in units priced
for as little as US$0.60 (versus the conventional US$2 to $10 prepaid card). Smart Load
allowed millions of poor Filipinos to gain access to cellular phone services (as of
December 2006, almost 50% of the Philippine population had wireless phones, and over
50% were Smart subscribers). In 2006, about 99% of Smart's subscribers used the
company’s prepaid service. Smart’s distribution system for Smart Load (using short
messaging system [SMS] technology) was a departure from the traditional system of
producing cards to sell airtime. By cultivating small and micro-entrepreneurs to re-sell
airtime, Smart spawned a distribution network of over 800,000 entrepreneurs nationwide
(as of September 2006). These small-scale distributors generate a 15% commission
directly from the company for airtime sales.
Smart Pasa Load: Miniaturizing pre-paid airtime
Capitalizing on the unique Filipino culture of sharing, the company further revolutionized
access to airtime by launching a new product in December 2003, called Smart Pasa Load
(pasa translates to “pass on”). With this service, one person could buy airtime and share it
with friends and family in units as low as US$0.10. More important for the entrepreneurial
poor was the opportunity to resell airtime to their friends through SMS. This spread the
company’s distribution system to the household level. As cited in a New York Times
article, this was a way of miniaturizing prepaid cellular packages. “This is
telecommunications in sachets,” said Mr Isberto.1
Case Study • Smart Communications: Low-cost Money Transfers for Overseas Workers
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Smart Money: Cutting edge e-solutions
In December of 2000, in partnership with MasterCard, Smart launched the world’s first
electronic cash card linked to a mobile phone - called Smart Money. It allowed users to
transfer money from a bank account to a Smart Money account or from a Smart Money
account to another Smart Money account. Once loaded with cash, the Smart Money
subscriber could perform the following:
▪ Mobile Banking. Subscribers with enabled mobile banking accounts can enroll their
mobile phone and Smart Money wallets. Once linked, they can do PIN-based (personal
identification number) bank transactions such as fund transfer, balance inquiries and
loading Smart Money cards.
▪ Wallet-to-wallet transfers. The subscriber could transfer funds from one e-wallet to
another.
▪ Reloading of prepaid airtime. Subscribers could use Smart Money to reload pre-paid
phone credits.
▪ Terminal purchases/Debit card. As an option, the subscriber could get a Smart Money
MasterCard Electronic card and use it as debit card in MasterCard Electronic
establishments in the Philippines and abroad.
▪ Automated Teller Machine (ATM) withdrawals. Subscribers can use the physical Smart
Money MasterCard electronic card to withdraw cash from an ATM.
▪ Debit card. Smart Money MasterCard could be used as a debit card, acceptable in all
establishments that accept MasterCard.
Profile of Overseas Filipino Workers
Overseas Filipino Worker, or OFW, was coined in reference to a Filipino who lived and
worked abroad. Diaspora of Filipino labor and large remittance flows have been prominent
features of the Philippine economy for decades. Over the last 30 years, remittances have
helped to stabilize the economy by strengthening the currency and keeping balance of
payments even with the magnitude of its inflows. The data varies from one source to another,
but it is safe to say that at least eight million Filipinos work and live abroad. This represents
about one-tenth of the country's citizens, equivalent to almost one quarter of the domestic
labor force. 9 The Philippines is the second-largest migrant exporters, from the oil fields of
Africa and the Middle East, to the cargo ships in the Atlantic and Pacific oceans or luxury
ships in Europe, private homes in Singapore, Hong Kong and Canada, or the villas of Italy
and Spain, all the way to the deep jungles of Kalimantan and the thick forest of Sumatra;
Filipinos are there working, apart from their families, to provide a decent and comfortable
future for their children (see Appendix E for the Top Ten OFW Destinations in the World).
The Philippines was the third largest recipient of remittances, behind India and Mexico at a
record high of US$10.7 billion in 2005. This was about 12.5 percent of the GDP, five times
9
Burgess, Robert and Haksar, V. 2005. Migration and Foreign Remittances in the Philippines – IMF
Working Paper. IMF.
Case Study • Smart Communications: Low-cost Money Transfers for Overseas Workers
6
bigger than the country’s Foreign Direct Investment (US$2.1 billion). 10 Banko Sentral ng
Pilipinas (BSP or the Central Bank of the Philippines) reported that 2006 OFW remittances
hit an all-time high of US$12.8 billion 11 (breakdown for 2006 figures in Table 1 was based
on the mid-year data from BSP).
Table 1: Five Year OFW Remittances by Region of Origin
(in thousands of US$) 12
REGION
2002
2003
2004
2005
ASIA
AMERICAS
OCEANIA
EUROPE
MIDDLE EAST
AFRICA
OTHERS
TOTAL
1,116,336
3,537,768
34,793
889,094
1,242,809
3,959
61,397
6,886,156
894,310
4,370,705
44,470
1,040,562
1,166,376
11,371
50,664
6,684,148
918,329
5,023,803
42,600
1,286,130
1,232,069
3,439
44,001
8,550,371
1,172,373
6,605,231
54,573
1,433,904
1,417,491
4,546
887
10,689,005
2006
(as of
August)
954,401
4,652,894
50,858
1,284,323
1,149,246
5,968
478
8,316,140
Source: Bangko Sentral ng Pilipinas (2006)
The main reason for the exodus of Filipinos abroad is poverty. There is a lack of opportunity,
evident by the high unemployment rate (8.9 percent 13 ) and the poor economic situation in the
country. As a result, many Filipinos seek employment abroad in the hope that they are able
afford a good education for their children, which, for most Filipino parents, is seen as the best
passport to a better future. Being extremely family-oriented, Filipinos face hardships by being
away from their families, but do so to be able to remit earnings to their families that they left
behind. The advent of mobile technology and the innovations of Smart have become an
intrinsic part of the Filipino life in keeping families separated by geographic distances
connected.
10
National Statistics Coordination Board (NCSB). Available at http://www.nscb.gov.ph/fiis/2006/3q06/Default.asp
11
International Herald Tribune. Published: February 15, 2007.
Available at http://www.iht.com/articles/ap/2007/02/15/business/AS-FIN-Philippines-Remittances.php
12
Data is based on bank reports submitted to BSP as contained in FED Form 1 prior to April 1999 and
FX Form 1 from May 1999 onwards. Beginning 2001, transactions reported by thrift banks, OBUs and
FOREX companies are likewise included. The data is not truly reflective of the actual country of
deployment of OFW due to the common practice of remittance centers in various cities abroad to course
remittances through correspondent banks mostly located in the U.S. Since banks attribute the origin of
funds to the most immediate source, the U.S. therefore appears to be the main source of OFW
remittances.
13
Data
from
the
National
Statistics
Coordination
Board
(NCSO).
Available
at
http://www.nscb.gov.ph/secstat/d_labor.asp, accessed on January 5, 2007.
Case Study • Smart Communications: Low-cost Money Transfers for Overseas Workers
7
OFW include all socio-economic
classes, but the majority are from
households earning less than US$600
per month. A study conducted by
ADB in 2004, showed that 44 percent
of OFW were from low-income
families (household monthly incomes
of less than US$160) and 39% were
from lower middle class families
(household monthly incomes between
US$160 and $600) (see Appendix F
Women from poor provinces are recruited as domestic
for Profile of OFW Socioeconomic
helpers. While waiting for their work documents, four to
Class). The low-income profile was
five women stay in a small room shown here (photo
courtesy of Greg Fanslow)
also matched by a low education
level. Data from National Statistics
Office from 2000 showed that only 30 percent of OFW had either attended or finished high
schools, and only 20 percent completed elementary school. The distribution between males
and females varied from year to year, but at least half were women. Most women work as
domestic helpers, service providers, and entertainers, and most men work as seafarers, skilled
and unskilled laborers. 14
THE NEED FOR BETTER MONEY TRANSFER SYSTEMS FOR OVERSEAS
FILIPINO WORKERS
For OFW, communication with families left behind in the Philippines and sending
remittances was difficult. Thousands of OFW were disenfranchised by the remittance service
system. The formal channels 15 were often regarded as expensive and slow. As much as 45
percent of their hard-earned wages went to wire transfer fees and charges. A host of issues
forced disenfranchised OFW to use unregulated channels with long delivery times and no
banking access for the beneficiaries.
In spite of the government’s rhetoric to give due recognition to the OFW as “the modern day
heroes” of the country, the fact remained that hundreds of thousands, perhaps even millions
of OFW, needed reliable, affordable, speedy and convenient remittance system. Marilyn
Dabo, a professional midwife from Composela Valley in Mindanao, served as the guardian of
her niece’s (a single parent) three year old daughter; her experiences were illustrative of the
problems faced by many: “it took three months for the bank to clear the check, and when I
was supposed to get the money, I was told that the check has to be sent back to Kuwait
because of some problems. It was very frustrating.”
14
Ericta, Carmelita (2003). Profile of Filipino Overseas Workers.
Available at http://www.ancsdaap.org/cencon2003/Papers/Philippines.pdf.
15
ADB refers formal channels to banks and informal channels are non-bank money transfer agencies,
which are registered or regulated by authorities to engage in money transfers. Unregulated channels are
those outside the regulatory environment -- usually made through unlicensed money transfer agencies,
or occur when money or goods are sent through friends or brought home personally by the migrant.
Case Study • Smart Communications: Low-cost Money Transfers for Overseas Workers
8
Smart response to Overseas Filipino Workers
needs
Smart Pinoy Center in Hong Kong
Recognizing the importance of OFW in the
country’s economy and the unmet needs of
that market, the company launched Smart
Pinoy 16 in 2004. It was the umbrella brand
of the company’s programme designed
solely to address the unique needs of the
OFW. “Smart Pinoy is our way of
recognizing the sacrifices made by our
OFW in working abroad,” said Smart’s
CEO. Under Smart Pinoy, Smart created
various products and services to address the
communication and remittance needs of the
OFW including Smart Padala and 1528
Smart Service.
SMART PADALA
Smart Padala 17 was launched in 2004. It was the first international remittance service in the
world using SMS technology. 18 It was developed using the Smart Money mobile commerce
platform technology (refer to Box 1 for background on Smart Money). Smart Padala allowed
OFW to send cash via SMS to the Smart Money account of the beneficiary from Smart
Padala Remittance Centers in over 20 countries (see Appendix G for list of International
Smart Padala Partner Remittance Centers).
The beneficiary exchanged the electronic money into cash from any Smart Padala Center.
They could also go to any other sending and encashment centers, which Smart had partnered
with, for increased customer convenience. By 2007, there were about 10,000 locations,
including 7-11 convenience stores, Smart Wireless Centers, Banco de Oro (the company’s
partner bank) and all Megalink and Express Net ATMs 19 . In rural provinces, beneficiaries did
not have access to major banks. To overcome this challenge, Smart forged partnerships with
local pawnshops, pharmacies, rural banks and gasoline stations: “Mabilis at Maaasahan”
(meaning fast and reliable), the branding tagline of Smart Padala, guarantees fast, efficient
and reliable service. Box 2 describes the remittance process.
16
Pinoy is a Tagalog term commonly used in the Philippines to refer to Filipino nationals.
Padala means “to send” in Tagalog. But over the years, padala popularly refers to remittance.
18
PLDT 2005 Annual Report
19
Smart is the only telecommunications company member of an ATM consortium.
17
Case Study • Smart Communications: Low-cost Money Transfers for Overseas Workers
9
Box 2: Remittance sending and receiving process
For Sender
Step 1. The sender goes to any Smart Padala Remittance Partner to fill out an information
sheet about the beneficiary.
Step 2. The remittance center transfers the remittance to the Smart Money number of the
beneficiary. For a first time user, the beneficiary will be assigned a Smart Money number.
For those with existing Smart Money cards, the sender simply indicates the beneficiary
number when sending the remittance.
Step 3. After a few seconds, the Remittance Center confirms that the transaction has been
completed.
For Beneficiary
Step 1. When the remittance transaction is completed, the beneficiary will receive another
SMS confirming that the money has been received through the Smart Money number.
There are two ways to cash in remittances:
Step 2. The beneficiary (without a Smart Money card) can go to any of the 10,000
encashment centers nationwide and present the Smart Money number to exchange the
electronic money for cash with a percent of the worth, in pesos, of the transaction value.
Step 3. For a beneficiary with a Smart Money MasterCard Electronic card (this comes with
post-paid subscription package; or for pre-paid subscribers, the card can be purchased from
any Smart Wireless Centers at US$4) he or she can use it as an ATM card to withdraw cash
remittance in any Banco de Oro branches with charge fee of US$0.06 per withdrawal) or
Megalink member ATM nationwide with a charge fee of US$0.21 per withdrawal.
Source: Smart Communications
Smart Padala has made sending money back
home much easier for OFW. It also lowered
the cost of sending remittances; through this
service, the company offered low-cost
remittances for as low as 1.2 percent (US$12
charge for US$1,000) of the total amount
received to as high as eight percent (US$8
charge for US$100). A comparison to other
remittance services is provided later, in
Table 2.
Smart Padala’s success encouraged the company to replicate the Smart Padala product for
domestic use, following exactly the same mechanics in June 2005. See Appendix A for
revenue growth of Smart Money.
Case Study • Smart Communications: Low-cost Money Transfers for Overseas Workers
10
1528 SMART SERVICE
In August 2004, in partnership with Hong Kong CSL Ltd and PLDT (HK) Ltd/PLDT Global,
Smart launched 1528 Smart (read as “fifteen-twenty-eight”), a pre-paid GSM wireless service
designed for the OFW community in Hong Kong. 1528 Smart encompasses many of the
existing Smart products, including those previously exclusive to Philippine residents such as
Smart Money, e-load and Pasa Load.
The unique value added by 1528 Smart, aside from the regular Smart Money capability, is
that its Mobile Remittance Service allows the subscribers to send remittances directly from
their 1528 Smart Money e-wallet to their beneficiaries in the Philippines. The sender simply
loads up funds, in pesos, to their e-wallet at the remittance center. Once loaded, the sender
can program his or her preferred fund transmittal frequency, for example, once a week. On
the preset dates, the beneficiary will receive an SMS about the receipt of fund and can present
his or her Smart Money number to any Smart Padala partner encashment centers and
exchange it for cash. This product was designed to address the desire of female OFW in Hong
Kong to have more control over their money. Eighty percent of roughly 140,000 OFW in
Hong Kong are women (i.e. 112,000 potential customers). Stories abound that beneficiaries
find it difficult to manage large sums of money. With 1528 services, women have more
control over the timing and amount of money sent, so that the money can be spent according
to their wishes.
Like Smart Load, 1528 Smart has an e-load service feature that offers airtime in sachet-like
packages in US$3.90 (valid for 30 days), $2.60 (valid for 15 days) and $1.30 (valid for seven
days). 1528 Smart not only enables mothers to frequently communicate with their children
and loved ones in the Philippines and manage the family budget virtually out of Hong Kong,
but it also opens up business opportunities and additional income for OFW in Hong Kong by
reselling airtime to other OFW. About 1,000 OFW resell Smart airtime in Hong Kong.
Impact on the Money-Transfer Industry
ADB’s 2004 study, Enhancing the Efficiency of Overseas Filipino Workers Remittance,
provided insightful recommendations to the government for improving conditions for
remittances. It also encouraged the banking sector and non-traditional remittance channels
(e.g. internet and mobile phone technology) to improve the remittance system by closing the
gaps that prevented OFW from using the formal channels. Since 2004, actors in the regulated
remittance channels have slowly addressed the key barriers to encourage OFW to use the
formal channels.
Smart Padala’s entry in the marketplace introduced new competition to the banking services
industry, with cheaper, more efficient and more accessible money transfer services to OFW
customers. After the launch of Smart Padala, telecommunications and banking institutions
raced to compete by offering low-rate money transfer services. The company’s archrival,
Globe Telecom planned to establish a similar system in the United States’ marketplace in
2007. However, no competitor has been able to compete with Smart Padala’s pricing.
Case Study • Smart Communications: Low-cost Money Transfers for Overseas Workers
11
Another advantage of Smart Padala, compared to other competitors, is that the beneficiary
did not need a bank account. It was also faster, since it was real time, as opposed to the twoday turnaround time that most other service providers offered. The company has a
competitive edge having been the first telecommunications company to explore the OFW
market and, so far, building a good market base remitting at least US$50 million per month
on average. Table 2 shows the comparative remittance costs using different remittance
channels.
Table 2: Comparison of Money Transfer Mechanism
Type of transfer
Cost to
remit ($)
Delivery
Period
Bank Account
Required
Remitter/
Beneficiary
Credit to account–same bank $ to peso
6-8
Minutes to 48
hours
No/Yes
6-15
2-3 days
No/Yes
Pick up at bank counters $ to peso
6-12
1-3 days
No/No
Door-to-door cash $ to peso (City)
10-14
1-3days
Door-to-door cash $ to peso (Province)
12-14
3-5 days
Prepaid, reloadable credit/debit cards
8
Credit to account–same bank $ to peso
7-12
Minutes to 24
hours
10-15
12 hours to 3
days
Door-to-door cash $ to peso (City)
11-12
2-3 days
Door-to-door cash $ to peso (Province)
12-14
3-5 days
Int’l money
transfer (e.g.
Western Union)
Pick up at MTO agents $ to peso
14-400
minutes
No/No
Host Country
Banks
Credit to account–same bank $ to peso
35-45
3-5 days
Yes/Yes
Credit to account–different bank $ to
peso
35-45
3-5 days
Yes/Yes
Text remittance through Smart
Money
1-8
minutes
No/No
Remittance
Channel
Credit to account – different banks
$ to peso
Philippine Banks
Philippine Money
Transfer Offices
Smart Padala*
Credit to account – different banks
$ to peso
No/No
No/Yes
Source: Asian Development Bank (2004) and Smart Communications
Case Study • Smart Communications: Low-cost Money Transfers for Overseas Workers
12
Development Impacts from Smart Padala
OFW AND THEIR FAMILIES
Over the past few decades, it became apparent that remittances contribute significantly to
economic development in the Philippines. They are also central to poverty alleviation. By
lowering the cost of money transfers, Smart Padala enabled OFW to increase their net
income and, potentially, the net remittance. A US$10 savings may look small, but for an
average domestic helper in Singapore or a construction worker in Angola, with six children
left at home, every dollar counts.
Box 3: Some commentary from Smart’s OFW customers
“I worked in Saudi Arabia for over 20 years and our contract before allowed us to see our
family only once a year. It was tough not being able to communicate with my family. But
today, communication technology provides us the opportunity to be in touch with our
families almost on a daily basis as it is very affordable to call or send message back
home. Lower cost of communication makes a whole world of difference for the OFW
community.” Says Hermie Punzalan, Assistant Plant Director of Equatorial Guinea Liquid
Natural Gas Company, a Smart subscriber.
Terri Alibarbar, an electrician from Quezon province working in Equatorial Guinea, West
Africa, keeps in touch with his wife and four young children through text messaging. All he
needs is to maintain a balance of airtime or “load” of US$2 to continuously use his
international roaming service. Once he is close to the limit, he sends SMS to his wife or to
one of his brothers to send him electronic load and allowing him to stay connected with
them. “It can really get lonely sometimes, being in touch with my family through SMS
gives me a lot of peace of mind,” says Terri. “It is very important for me to know how my
family is doing especially when one of my children gets sick. It is also a way of giving
emotional support to my wife as it is tough to be a single parent,” Terri added. “A mobile
phone is a must for OFW.”
IMPACT ON THE ECONOMY
The high propensity of Filipinos to use mobile phones and the wide reach of Smart
subscription helped the government advance its agenda to popularize the use of formal money
transfer channels. The entry of money transfer mechanisms, such as Smart Padala, provided
convenience, affordability, security and timely service both to remitters and their beneficiaries
and encouraged more OFW to use the formal channels. ADB 20 pointed out that the formal
remittance channel has several development, economic and security impacts. This was
particularly important in relation to the macroeconomic landscape of the country. The use of
unregulated money transfer channels undermined the integrity of the remittance system and
made it vulnerable to money laundering, terrorist financing and capital flight. It also had
20
Asian Development Bank (2004)
Case Study • Smart Communications: Low-cost Money Transfers for Overseas Workers
13
indirect effects on exchange rates and monetary policy. Moreover, remittances through
unregulated channels can cost a government and the private sector potential income, not to
mention the human development value of the remittance. Finally, there was the difficulty, if
not impossibility, of obtaining reliable estimates of the volumes of unregulated remittances,
which distorted the balance of payment figures for a sending country and precluded the
formulation of sound monetary policies.
Future Prospects for Smart
MONEY TRANSFER SERVICES
For Smart, the BOP will continue to be the company’s primary market, including the OFW
with newfound disposable income. Focusing on the OFW as a unique market segment opened
enormous opportunities to develop new solutions to serve these customers. The success of
Smart Padala and Smart 1528 provided the company with a foundation upon which to pursue
more innovations.
One of the traditional problems faced by OFW is determining how to direct and control the
money sent to beneficiaries in the Philippines. A classic complaint is that beneficiaries spend
the remittance on consumables, instead of on intended uses, such as paying children’s school
tuition fees. Once remittances start flowing, most of the OFW beneficiaries find it difficult to
manage the income. This was particularly true when the OFW was the mother of the
household. It was mostly female OFW that complained that they need to have more control
over their remittances.
To address this concern, the Smart President and CEO announced 21 at the 2007 3GSM World
Congress in Barcelona that the company will widen the coverage of its mobile-phone-based
remittances service for OFW in 2007 in more countries in the Middle East and Europe. This
global remittance service will be marketed by partner telecommunications companies and
banks and powered by Smart’s existing Smart Padala platform.
For the purposes of branding with other telecommunication companies
abroad, the expansion will be dubbed the Smart Service Hub. This
financial and telecommunications hub model is also based on an
upgraded Smart Money Mobile Commerce platform. In effect, Smart
will be a global financial service applications provider for
telecommunications companies in other countries. “The Smart Service
Hub is designed to help telecommunication companies and banks to
work together to serve the remittance needs of migrant populations in
their respective countries,” said Mr. Nazareno. As far as its marketing
21
Press Release: Smart Services Hub to help banks and telecommunications companies work together
to serve migrant workers worldwide. February 13, 2007/ Barcelona, Spain. Smart Communications, Inc.
Corporate Affairs Group.
Case Study • Smart Communications: Low-cost Money Transfers for Overseas Workers
14
strategy amongst OFW and their beneficiaries, all products and services that address the
needs of OFW will continue to fall under the Smart Pinoy platform. These new partnerships,
with global reach, will enable Smart to serve not only OFW, but to eventually serve other
migrant workers from other nationalities, as well.
Smart is also currently working on a pilot programme in the Philippines to use SMS
technology for OFW to directly pay specific expenses, such as school tuition, insurance
premiums, utility and hospital bills and mortgages. With an enhanced remittance system and
technology, the company envisaged that OFW will be able to remit money during any time of
the day, wherever they may be. There would no longer be any need to spend time and money
traveling to and from the bank or remittance offices. Like Smart 1528, Smart hopes that future
remittance services will give Filipinos, particularly women, greater control over how their
monies are spent. Because the fees are lower and remittances can be done by phone, they now
have the option of sending smaller amounts at the time the funds are needed very much like
just-in-time delivery.
The 2006 launch of the domestic version of Smart Padala is also an opportunity to generate
economic activity in rural areas to help alleviate socio-economic conditions through
remittances from family members working in the urban centers. In early 2007, Smart also
announced that it partnered with two more Philippine banks, Rizal Commercial Banking
Corporation and Development Bank of the Philippines, for the development and expansion of
Smart Money-powered cards and remittance services.
FORGING PARTNERSHIPS WITH LOCAL ENTREPRENEURS AND
FINANCIAL INSTITUTIONS AS CASH REDEMPTION CENTERS
Considering that majority of the OFW were from rural areas, Smart saw the need to partner
with local enterprises such as local stores, pawnshops, local development and rural banks,
non-governmental organizations and micro-finance institutions to play a pivotal role in the
delivery of remittance and financial products and services to beneficiary families. The
company hopes to replicate its success in working with women-owned micro and small
enterprises as a distribution network to re-sell airtime as they multiply the number of cash
Case Study • Smart Communications: Low-cost Money Transfers for Overseas Workers
15
redemption centers nationwide. Smart foresees this as an opportunity to further spread the
economic impact of Smart Padala to local enterprises and institutions.
Conclusion
Smart’s innovative strategies to marry the social objective of providing better services at a
lower cost to the poor with the business objective of increasing revenues and growing the
company have been overwhelmingly successful. The introduction of products specifically for
OFW has positively impacted the lives of Filipinos and the Philippine economy. The Smart
Padala programme is an example of how a technology like the mobile phone can be used to
reduce the cost of money transfer transactions of OFW, thereby enabling them to retain a
greater proportion of their income. As Smart Padala gained momentum, it forced the banking
community to improve and reduce the cost of their services. As a result, all OFW, not just
those that use the Smart Padala service, benefit from this competition. As the service is
further improved, we are likely to see continued innovation aimed at serving the OFW
community. Among the innovations will be improved ways to enable OFW to direct and
better manage how remittances will be used.
Case Study • Smart Communications: Low-cost Money Transfers for Overseas Workers
16
References
Asian Development Bank. 2004. “Enhancing the Efficiency of Overseas Filipino
Workers Remittance Manila, Philippines.”
Available at www.adb.org/Documents/TARs/PHI/tar-phi-4185.pdf.
Associated Press. 2007. “Philippine overseas workers sent home US$12.8 billion in
2006, up 20 percent from 2005.” 15 February 2007. International Herald Tribune.
Available at www.iht.com/articles/ap/2007/02/15/business/AS-FIN-PhilippinesRemittances.php
Bangko Sentral ng Pilipinas. “Overseas Filipino Workers Remittance (2002-2006).”
Available at www.bsp.gov.ph/statistics/spei/tab11.htm
Burgess, Robert and Haksar, V. 2005. “Migration and Foreign Remittances in the
Philippines – IMF Working Paper.” IMF.
Ericta, Carmen. 2003. “Profile of Filipino Overseas Workers.”
Available at www.ancsdaap.org/cencon2003/Papers/Philippines.pdf.
National Statistics Coordination Board (NCSB).
Available at www.nscb.gov.ph/fiis/2006/3q-06/Default.asp
Opiniano, Jeremiah. 2006. “Using text message to send cash—new technology
transfers money cheaply and easily.” 18 December 2006. The Mercury News.
Available at http://mercurynews.com/mld/mercurynews.16270491.htm
Philippine Overseas Employment Administration (POEA).
Available at www.poea.gov.ph/docs/STOCK%20ESTIMATE%202004.xls
Smart. Connect (Corporate Magazine). Vols. 1, 2, & 3.
Available at www.smart.com.ph/smart/About+Us/ Corporate+Mag/
Smart. PLDT Annual Report 2004 and 2005
Smart. Smart Communications corporate website. Corporate Profile. Available at
www.smart.com.ph
Smith, Sharon. 2003. “What works: Smart Communications – Expanding Networks,
Expanding Profits.” World Resources Institute.
Available at www.digitaldividend.org/pdf_communications_case.pdf
Case Study • Smart Communications: Low-cost Money Transfers for Overseas Workers
17
Social Weather Stations. 2004. “Household Amenities/Facilities Survey. Manila,
Philippines.”
The CIA World Factbook, Philippine Country Profile.
Available at https://www.cia.gov/cia/publications/factbook/geos/rp.html#top
Vera de, Roberto. 2006. “Tapping OFW Markets.” Urban Strategies Group, School of
Economics, University of Asia and the Pacific.
Available at http://ofnews.blogspot.com/2006/03/tapping-ofw-markets.html
Interviews
Aldaba, Sally F., Senior Manager for Corporate Communications, Public Affairs Group,
Smart, Makati, Philippines, 9 November 2006.
Alibarbar, Terri, OFW working for Bechtel in Equatorial Guinea, West Africa, 22 November
2006.
Dabo, Marilyn, OFW remittance beneficiary, Compostela Valley, Philippines, 20 November
2006.
Flores, Darwin F., Senior Manager for Community Partnerships, Public Affairs Group, Smart
Communications, Inc., Makati, Philippines, 9 November 2006.
Isberto, Ramon, Public Affairs Group Head, PLDT and Smart, Makati, Philippines,
November 2006.
Photo Acknowledgments
Smart pictures, courtesy of Smart Public Affairs Group
Greg Fanslow, “Woman by the window”.
Available at http://www.flickr.com/photos/framefive/234894969
Case Study • Smart Communications: Low-cost Money Transfers for Overseas Workers
18
Appendix A: Comparative Cellular Data Revenues Performance
from Smart 2004-2005
Sources of Revenue
2004
2005
% Change
Text Message (or SMS)
Related
570.62
643.48
13%
65.94
72.94
11%
Smart Money
1.22
2.04
67%
TOTAL
637.78
718.46
Value added services
22
Source: Smart Communications
Notes:
Text messaging related services accounted for the majority (about 90%) of Smart’s total
revenue for 2004 and 2005.
Smart Money covers revenues from Smart Padala transactions.
22
This includes sales from logo and ring tone download activities, info-on-demand such as news
updates, entertainment news, etc.
Case Study • Smart Communications: Low-cost Money Transfers for Overseas Workers
19
Appendix B: Financial Statements for PLDT 2004 - 2006
2005- 2006 (Note 2006 up to 3Q only)
2004-2005
Note: In this report, wireless refers to Smart Communications, Inc.
Case Study • Smart Communications: Low-cost Money Transfers for Overseas Workers
20
Appendix C: Awards and Recognition
2005
•
•
Most Outstanding M2M Implementation, Gold Prize Winner citation, M2M Value Chain Awards,
Chicago, Illinois, USA
Mobile Operator of the Year, Asian Mobile News Awards, Singapore
2004
•
•
•
•
•
•
•
Best Mobile Application or Service for the Consumer Market, (Smart Load), GSM Association,
Cannes, France
Grand Anvil Award and Excellence Award (for PPCRV electoral campaign), Excellence Award (for
Smart Entrepreneurial Program)
Merit Award (for Smart Padala), 40th Anvil Awards, Manila
Finalist (for Smart Padala), Asian Innovation Awards 2004, Far Eastern Economic Review,
Singapore
Business of the Year, Innovator of the Year (for Smart Load), 1st Raul Locsin Award for Business
Excellence
Best Managed Company in the Philippines, (PLDT and Smart) Finance Asia
Asia Pacific Wireless Service Provider of the Year, Most Innovative Application of the Year (Smart
Load) Frost and Sullivan Asia Pacific Technology Awards 2004, Singapore
2003
•
•
•
Winner (for the Smart Mobile Commerce Platform), 4th Annual Intelligent 20 Awards, Singapore
Philippines' Best Employer, Cited in an Asian-wide study conducted by The Asian Wall Street
Journal and Far Eastern Economic Review, Management Association of the Philippines and
Business World; Hewitt Associates
Top 10 Philippine Companies in terms of Corporate Leadership (Far Eastern Economic Review)
2002
•
•
Top 10 Philippine Companies in terms of Corporate Leadership (Far Eastern Economic Review)
Second Best Employer in the Philippines (Far Eastern Economic Review)
2001
•
•
•
Top 10 Philippine Companies in terms of Corporate Leadership (Far Eastern Economic Review)
Most Innovative Service (Smart Money), Asia-Pacific marketing awards; MasterCard International,
Sydney, Australia
Top 10 Best Employers in the Philippines, Hewitt /Dow Jones
2000
•
•
Top 10 Philippine Companies in terms of Corporate Leadership (Far Eastern Economic Review)
Most Innovative GSM Wireless Service for Customers (Smart Money), GSM Association, Cannes,
France
1998
•
Top 10 Philippine Companies in terms of Corporate Leadership (Far Eastern Economic Review)
1997
•
Marketing Company of the Year, Philippine Marketing Association, 18th Agora Awards
Case Study • Smart Communications: Low-cost Money Transfers for Overseas Workers
21
Appendix D: List of Smart Products and Services
Products
Description
Smart Gold
The company’s original, most broad-based postpaid brand introduced in 1999
Smart
Buddy
Introduced in 1999, shortly after Smart Gold, it is a popular prepaid wireless services
brand of the company comprising 98% of the total subscribers.
Smart Link
Smart’s prepaid satellite telephony service. It utilizes the AceS satellite technology, which
covers the entire Asia-Pacific region in three gateways in Indonesia, Thailand and the
Philippines. This satellite system has a footprint covering 11 million square miles in the
Asia-Pacific region with the capacity of providing telecommunication service for those
without access to landline or without cell coverage in remote and isolated areas. This is a
very important infrastructure for the company as it provides the platform to develop
products to reach far-flung barangays in the country. Smart offers its satellite phone
services in more than 10 countries in Asia.
Smart Talk
Launched in October 2000, Smart Talk is a pre-paid pay phone service that can send
SMS service to GSM mobile phones in addition to voice calls.
Talk N Text
Pre-paid Piltel GSM cell phone subscriber service
Smart
Infinity
Introduced in January 2004, is a premium postpaid plan that offers round-the-clock
dedicated personal concierge service, international assistance service, premium handset
packages and exclusive lifestyle content.
1528 Smart
Launched in Hong Kong in August 2004, 1528 is a prepaid GSM mobile phone services
designed and packaged to cater to the Filipino OFW in Hong Kong.
Smart 25/8
Unlimited
Call and
Text
Launched on March 11, 2005, a one month promotion which gives Smart and Talk N Text
pre-paid subscribers the option to avail of unlimited on-network voice calls or unlimited onnetwork texts, is Smart’s test for the apparent market demand for fixed rate or “bucket”
plans for voice and SMS services.
Smart Load
A revolutionary over the air (OTA) prepaid reloading service offering airtime sachet-like
packages. The service makes available four types of retail packages: Economy worth
US$0.60, Regular worth US$1.20, Extra which sells for US$2.30 and a US$4.00 package
Pasa Load
It is s a service that allows Smart Buddy and Talk ‘N Text subscribers to pass on to each
other airtime with the following denomination: US$0.30, $0.20, $0.10 and $0.04.
Smart
Padala
It is the first international cash remittance services through SMS. Smart Padala Domestic
was launched in June 2006.
Smart 3G
On February 14, 2006, Smart 3G was made available to customers on a free trial basis.
On May 1 2006 enhanced and enriched Smart 3G services were made commercially
available to customers. More than local and international video calling, Smart 3G also
offers content that includes real time video streaming of TV shows and downloads of
movie trailers, music videos. Anime and vacation spots. Other content includes real time
traffic videos in major thoroughfares in key cities.
Smart Click
Internet
Cage & More
On April 5, 2006, Smart launched Smart Click which serves as a neighborhood one-stop
digital shop in places with limited or no provisions for high-speed Internet and other related
computer and desktop publishing services. Smart will use a dedicated wireless broadband
connection providing speeds of up to 1 MBps. Smart aims to make Internet services
accessible in towns in provinces nationwide, even in so-called ‘uncharted territories’.
Smart Bro
On April 23, 2006, Smart Bro was unveiled, the new brand for Smart’s wireless broadband
offering, marking a move from its earlier Smart WiFi brand. Parent firm the PLDT is also
reselling Smart Bro. The launch of Smart Bro underscores the strategy of the PLDT group
to provide its customers with the widest range of broadband connectivity solutions and
establish its leadership in the broadband market in the country.
Smart Amazing Phone
Other post
paid
products
Blackberry email service
Smart Infinity: multiple cell phone lines in one handset
Smart Kid: SMS service designed for children aged 5-12 years old to keep them in touch
with family members anytime, anywhere.
Case Study • Smart Communications: Low-cost Money Transfers for Overseas Workers
22
Services
Features
Text: post and prepaid
includes
Basic SMS services and Value-added Services
Voice post and prepaid
includes
Call blocking
Call waiting, forwarding and holding
MMS
International Multi-Media Messaging Services
Data post and pre paid
service
Includes, WAP or wireless application protocol, GPRS general packet ratio
services and mobile data fax (for post paid only)
Post and prepaid services in partnership with MasterCard. Transfers
money from bank account to a Smart Money Card in order to:
Use card in nationwide shops and restaurants
Smart Money
Re-load airtime for Smart Buddy over the air
Transfer from one Smart Money card to another
Pay utility bills (for Smart Gold subscriber only)
Use like an ATM card
Get reward points with every transactions
Use of the click and browse menu in Smart 64K super SIM
Online banking transaction including reloading of Smart Load over air
Mobile Banking
Pay bills through cell phone: water, electricity, post paid subscription,
insurance, credit card, etc.
Re-load Smart Money
9 Banks including CitiBank, Banco de Oro, East West Bank and Equitable
PCI Bank, and others.
Case Study • Smart Communications: Low-cost Money Transfers for Overseas Workers
23
Appendix E: Top 10 Countries of OFW Destination
Deployment
TOP TEN DESTINATIONS
2004
2005
1. Saudi Arabia
188,107
193,991
2. Hong Kong
87,254
94,553
3. United Arab Emirates
68,386
81,707
4. Taiwan
45,059
46,714
5. Japan
74,480
42,586
6. Kuwait
36,591
40,248
7. Qatar
21,360
31,418
8. Singapore
22,198
27,599
9. Italy
23,329
21,261
10. United Kingdom
18,347
16,799
TOTAL
585,111
596,876
Source: Philippine Overseas Employment Administration (POEA).
Available at http://www.poea.gov.ph/html/statistics.html
Case Study • Smart Communications: Low-cost Money Transfers for Overseas Workers
24
Appendix F: Profile of OFW Socioeconomic Class
Socioeconomic Class
Indicators
AB
C1
C2
D&E
% of OFW 23
2
15
39
44
House or
dwelling
appearance,
location of
home
Durable materials,
fine workmanship,
well-maintained, has
lawn and garage,
expensive
furnishings
Durable materials,
maintained, may
have
lawn/garage, less
expensive
furnishings
Less durable
materials, no
lawn/ garage
likely, not too well
maintained
College graduate or
master’s
College graduate
or master’s
High school or
some high school,
some college
Some high school,
elementary or some
elementary, or none
Household
monthly
income
$1,000 and up
$600 to $1,000
$160 to $600
$160 and below
House
ownership
Own house
Own house/renting
Renting, staying
with relatives
Renting, staying
with relatives,
squatting
Several items
owned in the
Philippines and in
country of work
Several items
owned in the
Philippines and
some in country of
work
Few items owned
in Philippines,
and very few or
none in
country of work
Very few in the
Philippines, and
very few or none in
country of work
Education of
respondent
and
spouse
Ownership of
items, i.e.,
house,
vehicle,
computers,
cell phones,
refrigerator,
etc.
Number of
household
members
Materials not long
lasting (i.e., nipa),
furnishings meager.
Relatively rundown,
poor neighborhood
Relative to household income, position as household head, and ages of household
members
Source: Asian Development Bank (2004)
23
Figures are percentages of OFW sample respondents in the ADB study.
Case Study • Smart Communications: Low-cost Money Transfers for Overseas Workers
25
Appendix G: International Padala Centers and Partners
COUNTRY
REMITTANCE PARTNER
Australia
Pera Padala PTY Ltd., Chartered Forex,
Austria
Pinoy Express
Brunei
GP Express, Pinoy Express
Belfast
CBN Holdings
Dubai
Ventaja International Corporation
Dublin
CBN Holdings
Canada
Global Peso Express, Maharlika Services Inc., Philippine Tropical
Express, Quick as a Flash, Reliable Peso Remit, Philsend Inc., Philsend
Inc.,
Greece
CBN Holdings
Hawaii
Remit Plus International Inc
Hong Kong
1528 Pinoy Center, Amazing Communications, Banco De Oro, Far East
Remittance, Gen Ex, IREmit Global Remittance, Ideal Pinoy Shop, Pinoy
Express, Rainbow, Travelex/Asia Fx, Carlson’s Remittance, PLDT Global
Ireland
CBN
Japan
CBN Holdings
London/UK
CBN Holdings, Direct Money Tansfer, Far East Remittance, Twilight
Express Ltd., Swift Cash Inc., IREmit Global Remittance, Philsend Inc.,
New Zealand
Cybertalk Limited, Tres Marias Trading Ltd., TLC Remittance,
Palau
Pinoy Express
Qatar
Al Jazeera Exchange, Arabian Exchange, City Exchange, Future
Exchange, Gulf Exchange Mian, Lari Exchange
Saipan
Pinoy Express
Saudi Arabia
Pinoy Express
Singapore
GP Express, Pinoy Express, Travelex/Asia FX
Spain
CBN Holdings
Taiwan
Iremit Global Remittance
United Arab Emirates
Al Ahalia Financial Brokerage (formerly Buset Investment Co.), Al Ansari,
Sajmani, UAExchange
United States of America
Dollar American Exchange (DAX), New York Bay Remittance (New York),
Grammercy, Chartered Forex, Philsend Inc.,
Source: Smart website
Case Study • Smart Communications: Low-cost Money Transfers for Overseas Workers
26
September 2007
The information presented in this case study has been reviewed and signed-off by the company to
ensure its accuracy. The views expressed in the case study are the ones of the author and do not
necessarily reflect those of the UN, UNDP or their Member States.
Copyright @ 2007
United Nations Development Programme
All rights reserved. No part of this document may be reproduced, stored in a retrieval system or
transmitted, in any form by any means, electronic, mechanical, photocopying or otherwise, without
prior permission of UNDP.
Design: Suazion, Inc. (N, USA)
For more information on Growing Inclusive Markets:
www.growinginclusivemarkets.org or gim@undp.org
United Nations Development Programme
Private Sector Division, Partnerships Bureau
One United Nations Plaza, 23rd floor
New York, NY 10017, USA
Case Study • Smart Communications: Low-cost Money Transfers for Overseas Workers
27