IFC Invests in Mobile Banking Development in LA

IFC made a $ 3 million investment and an additional $ 2 million for YellowPepper company in Panama.

Wednesday, October 27, 2010

The investment will support expansion of mobile banking and access to financial services in Latin America. This is the first capital of the International Finance Corporation (IFC, in English), in a mobile banking firm in Latin America and brings the total investment in YellowPepper to over U.S $ 15 million.

Only about a third of the population of Latin America and the Caribbean have access to formal financial services. However, 80 percent of the population has access to mobile phones, which represents an important opportunity to extend financial services to millions of low-income customers in the region. YellowPepper, allows to make and receive payments via a mobile phone, speed commerce, provides domestic and international wires and increases the ability of customers to invest in assets which create income.

Founded in 2004, YellowPepper currently offers services in Colombia, Peru, Ecuador, Guatemala, the Dominican Republic, Bolivia, Haiti and Panama, with more than 2 million active users. The company is developing a processing center for mobile payments, which will allow mobile subscribers, retailers, billers, consumers and banks to interact on a common platform using the mobile phone.

IFC invests in mobile banking and payment processing companies in emerging markets. IFC also advises clients on strategies and product development to promote business models. IFC's investments in the sector of electronic payments and mobile banking have supported access to these services for more than 15 million customers in Asia, Africa and Latin America.

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