Mobile money transfers coming in 2008

There are a few drawbacks. First is that this is a GSM service, which shuts out many cell phone users in the U.S. If you are a subscriber of Sprint, Verizon, Alltel, or any of their MVNOs — plus regional providers like U.S. Cellular, MetroPCS, and Cricket — you’re not going to reap the benefits of this service. Though we’re pretty sure a similar service will soon be available for those companies. For instance, MoneyGram, a Western Union competitor, would do well to target the CDMA crowd. Still, security is the main issue here. This is the only hint we’ve read as to what the process will be: “It will connect a cell phone user to a Western Union operator who will complete the transaction using special company software.” Okay, that’s great and all, but what about ID verification? Mobile phones are stolen every day, and we’re sure this kind of service would give thieves a greater incentive to snatch your phone. We’re sure that there will be security measures announced before the service rolls out. Americans are becoming extra-wary of insecure transactions, so Western Union is basically obligated to disclose everything, lest they risk people simply not using the service. We’ll see next May, we suppose. [Associated Press]]]>