Vodafone, Citi set sights on money transfer

British telecom major Vodafone, which announced its full-fledged entry into the booming domestic telecom space by acquiring Hutchison-Essar, is now eyeing international money transfer service in the country along with Citigroup.

The service was aimed at enabling money to be transferred internationally from person to person using mobile technology, as this would greatly assist the flow of funds from migrant workers back to their families, sources said. Remittances from Indians working abroad are an important source of income for many families.

The service would also provide senders and recipients of money with a superior method for sending money home that is convenient, cost-effective, transparent, secure and easy to use, sources said.

"The Vodafone deal has to fully complete now. So it is very early to comment anything on this tie-up right now. Also, as a matter of policy, we don't comment on the company's futuristic plans," a Citigroup spokesperson said.

Globally, Vodafone and Citigroup recently entered into a venture for mobile financial remittance.

Vodafone customers in the United Kingdom already had the facility to transfer money to Kenya on a trial basis. Going forward, the company had plans to launch the facility in Eastern Europe, Asian markets, including Poland and India, sources said.

The product was uniquely developed to allow the remitter and the beneficiary to choose from a range of options as to how the money is sent and received.

The sender can initiate the transfer using either a mobile phone or a secure internet website to give instructions on where to send the funds.

The funds can be received in a bank or through the receiver's mobile phone in the form of a voucher and secure PIN that will enable the receiver to redeem the cash at a wide range of outlets.