EnStream Makes Zoompass Money Transfers Free

by Gaurav Kheterpal on July 30, 2010

EnStream, the mCommerce joint venture between Canada’s ‘Big Three’ wireless operators which runs the Zoompass mobile wallet service, announced yesterday that it has removed all fee for person-to-person money transfers. The service was first launched by Bell Mobility, Rogers and Telus in June 2009 and now allows customers to send and receive funds without any transaction fee.

When it launched last year, Zoompass charged $0.5 per transaction. Last month, the transaction charge was halved to $0.25 as part of a spring promotional offer. I’ve no doubt that the declining transaction fee and its eventual abolishment is a sign that Zoompass has failed to live up to its pre-launch media hype and high expectations.

As an added bonus for its customers, Zoompass has also increased the daily spending limit from $250 to $750 a day. EnStream insists that the abolishment of transfer fee was a question of when rather than why. Robin Dua, President of EnStream LP believes that since there’s no fee for cash transactions, so it’s inappropriate to charge a fee for electronic transactions through the Zoompass Mobile Wallet.

Last month, Zoompass won the coveted ‘Canadian Innovation Award’ from Advanced Card Technologies (ACT) Canada. EnStream believes that the future belongs to a ‘cashless society’ where people won’t be required to carry wallets and pay dollar bills. Every financial transaction will be done in a matter of seconds through your smartphone. I’d say that it’s fairly optimistic thing, especially for Canada, where the adoption of mobile banking has been pathetically slow.

Globe published a report in February which indicates that less than 10 per cent of Canadians use mobile banking and I don’t think the scenario has changed drastically in the last six months. The report also suggested nearly 20 per cent Canadians plan to start using mobile banking within the next year. While that’s an encouraging sign, I find it somewhat discomforting that mobile social networking has found far greater acceptance in Canada as compared to mobile banking. Do Canadians still feel that phones are good enough for tweeting and Facebook updates but not for financial transactions?

The success of services like Zoompass depends on critical mass and EnStream would be hoping that their decision to abolish transfer fee will trigger widespread adoption of their flagship mobile wallet service.

The Zoompass wallet is pre-loaded on many mobile phones on Bell, Telus & Rogers networks and is also available for download at www.zoompass.com. Now that the transfer fee is abolished, are you planning to subscribe to Zoompass?

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Written by: Gaurav Kheterpal. www.digitcom.ca >. Follow TheTelecomBlog.com > by: RSS>, Twitter >, Identi.ca >, or Friendfeed >

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