Reply from Mia of VMobileSolutions

Hi Jacqui,

Yes, we have an existing micro-remittance service available on the Chikka Messenger version 4 called i$end. It is a web service that can be accessed from and is linked to the said instant messenger. PayPal and Moneybookers users can purchase ‘i$end credits’ which can be used for sending prepaid load credits, game and internet credits, Smart Money or electronic gift vouchers to their friends and family in the Philippines.

Our money remittance service offers micro denominations, namely P500, P1000, P2000 and P5000. The US dollar amount paid by the sender is computed based on the exchange rate plus a small handling fee that covers the printing and courier fees of the card, fees charged by the payment gateways (PayPal or Moneybookers), 24x7 customer support, fees to remit the funds to the Smart Money account of the beneficiary, and other operational costs. We charge $3.48 to remit P500-P2000 while we charge $5.99 to remit P5000.

All the sender needs to do is to fill up a form on the web by providing personal details such as name, address and a contact number plus details of the beneficiary. (A beneficiary should be a Smart subscriber in order to receive funds). On the first transaction, we call the sender and beneficiary in order to verify the information. The beneficiary details will be uploaded to the Smart Money system. The beneficiary will receive an SMS notification regarding the money sent to his Smart Money account. Average turnaround time takes 1 day for the first transaction. The Smart Money personalized card and PIN mailer will be printed and mailed to the beneficiary within 5-10 days. Succeeding transactions will be completed within a few minutes. If the beneficiary already has a Smart Money card which is tied to the mobile phone number provided by the sender on the first transaction, then a card will no longer be printed out. They can encash immediately at any Banco De Oro ATM.

Regards,

Mia

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I logged in to my Chikka Messenger account (version 4) and an icon of a Peso sign and cellphone directed me to the i$end page. It didn't work at first, but it worked on the second time. You can buy i$end credits from PayPal and Moneybookers and use the i$end credits for sending money to a Smart Money beneficiary. When I clicked on the icon for buying i$end credits from PayPal, I got an error. I logged off Chikka and logged in again. This time, I couldn't even get to the i$end page. "The page cannot be displayed".

As of this time, 11:39 am, October 26, 2006, the i$end system does not work. If I were an OFW wanting to send money, I don't think I would want to rely on this service. Unreliable.

I'll try again later to see if it works.

Filipinos can have PayPal!

Two weeks ago, I read that PayPal is now available in the Philippines. I signed up for a PayPal Premiere account just to see that the Philippines is included. Lots of people shared their comments on the PayPal for the Philippines site so I'll just sum up and include the interesting points shared.

1. You can ONLY SEND MONEY with your PayPal account, up to $100.

2. You CANNOT:

a) Request for money or receive money
b) Add funds from your bank account
c) Withdraw funds

3. This is good news to online shoppers, especially those who want to buy from eBay.

4. Implications:

a) PayPal can't be used for remittances, which most Filipinos are after
b) Online merchants can't use PayPal to collect payment

A person named Brod made a comment in the PayPal for the Philippines site and made a good point :

"Paypal in other countries like Malaysia also cannot receive funds to their local bank accounts. It effectively limits local merchants from outselling American merchants. Plus even if local merchants are able to sell their products, they can’t get their money from the States. That effectively contains their money within their shores. If you want your money, you will have to have a US bank account and use their wire transfer services to get your funds. Very good thinking. Americans are money-wise.

Paypal knows they now have stiff competition from Google Checkout, so they suddenly scrambled to get first base in the Philippines. But in their race to outdo each other, our Filipino remittance companies will in the long run be at the losing end."

Some people think it was an insult that PayPal imposed these limitations, but I think it was a smart decision. I think PayPal is testing the waters now. If all goes well with this, maybe PayPal would consider offering us their other services.

Another person who made a comment caught my attention. Mia says:

"For those who are frustrated that you can’t cash-out using your PayPal acount, we might have the answer to what you are looking for.

We currently have an ongoing service that allows PayPal users to remit cash in micro-denominations to the Philippines via Smart Money. We accept PayPal payments and we transfer the money to a Smart mobile number via Smart Money. We charge a handling fee to cover for PayPal/Smart Money transaction fees, production of the card, and other operational expenses. For example, we charge $5.99 for a P5000 remittance.

We mail our beneficiaries the physical Smart Money card and PIN. The card can hold up to 50,000 pesos at any given time. You can then withdraw the funds from a Banco De Oro ATM or encash in any Smart Wireless Center. If you are talking about receiving PayPal payments not more than 50K, this might be the solution you guys are looking for. Contact me at mdeleon@vmobilesolutions.com."

I have already sent Mia an email and asked more details on this service. How will the PayPal remitter send money? Is this done online? The website of VMobileSolutions does not really share this information. I will find out soon.

By the way, Innoload provides a solution to the ongoing problem of receiving PayPal in the Philippines. Innoload allows PayPal users to send money online to Smart Money and Globe G-Cash beneficiaries. Visit www.innoload.com