Filipino Ex-Pat Workers to Use Mobile Phones to Send Money Home

Philippines based bank, Metrobank has inked a deal with mobile payments vendor, Luup to enable overseas workers to send funds to their families back home. Transactions will be initiated by customers of Luup banks, processed through Luup and paid out, utilizing Metrobank's network of over 500 branches and over 1,100 ATMS across the country.

It is estimated that there are around two million Filipinos working in the Middle-East alone.

According to the Central Bank of the Philippines OFWs remittances from the Middle East amounted to upwards of US$2.5 billion in 2008. "This is an increase of 13.68 percent over 2007 numbers," said Richard S. So, Senior Vice President, Metrobank.

"Filipinos are savvy mobile users, and in general have adopted mobile payment technologies ahead of other markets, in order to make person-to-person payments and mobile top up transactions. With our new partnership with Luup, OFWs can now have a hassle-free and secure way of sending their remittances," he continued.

Metrobank has a consolidated network of over 500 domestic branches and 35 foreign branches, subsidiaries, and representative offices; 58 remittance tie-ups, and more than a thousand correspondent banks, with an international presence spanning 21 countries.

"With a mobile phone penetration rate of more than 75 percent last year - comprising close to 70 million mobile phone users in the Philippines that are adept with mobile phone payment applications, the Philippine expatriate market is ripe for international remittance services," said Morten Hofstad, Head of Business Development for Luup in the MENA region. "The convenience and security afforded by our solutions enable OFWs throughout the Middle East to send their regular remittances in a fast and secure way. Likewise, this new service is expedient especially where crisis or emergency situations are concerned."

Luup launched its services in the Middle East through a partnership with the National Bank of Abu Dhabi (NBAD) last year as well as with Deutsche Bank globally. Luup is currently in talks with other financial institutions to build similar partnerships aimed at facilitating mobile payments around the globe.

Google's investors look for next big thing

Google Inc made its fortune on Internet search ads, but Wall Street is increasingly eager for signs that the company's other money-making bets will pay off.

"Even though paid search is 95 percent of the business, I think everybody's looking for that next trick," said John Lutz, a senior research analyst at Frost Investment Advisors, which owns Google shares.

Google will brief investors in a Webcast on Wednesday about search and monetization, though Google spokeswoman Jane Penner said the event will focus more on the monetization of search than on businesses like YouTube.

The Internet giant has myriad initiatives, including a display ad business, mobile Internet products and YouTube, the world's top video Web site.

But none have demonstrated the kind of financial horsepower typically associated with Google, which generated nearly $22 billion in revenue last year.

The Mountain View, California company has been tight-lipped when it comes to the financials of non-search businesses, though there are signs it is opening up a little.

In July, Google lifted the covers slightly on YouTube, revealing that YouTube is monetizing billions of video views every month and that it expects YouTube to become a profitable business in the not-too-distant future. Executives wanted to dispel reports that YouTube, which it acquired for $1.65 billion in 2006, does not have a credible business model.

New formats

Brigantine Advisors analyst Colin Gillis said new ad formats that incorporate videos and graphics could prove key to Google's future growth, as the company courts advertisers like Johnson & Johnson and Procter & Gamble.

"Google's got to give them a good format to convey emotion. This is going to be the next major area," said Gillis.

Google sought to bolster its display ad business with the 2008 acquisition of ad network DoubleClick for $3.1 billion. But rivals Yahoo Inc, Microsoft and Time Warner Inc's AOL still dominate that market.

Analysts also point to Google's mobile efforts, such as specialized search applications for smartphones, as a natural extension of its business. The price of each ad should be higher, because Google can display fewer paid search links on a phone's screen, Sanford Bernstein analyst Jeff Lindsay said.

Moreover, mobile content has the potential to incorporate a user's geographic location, making the ad more specific and relevant, which could also drive up pricing.

"The hypothesis was that mobile search would deliver much higher revenue per search," said Lindsay, but it is unclear whether that is the case.

Analysts estimate that mobile search ads now yield less than 5 percent of Google's revenue. The question is when mobile could become a more significant source of revenue.

"It's not really this year. It's the next three to four years," said Lindsay.

Near-term, search is still what moves the needle.

"The most important thing that everybody wants to figure out is what does a recovery scenario look like for search," said RBC Capital Markets' Ross Sandler. "Once you get beyond that, and that starts to get priced-in and well-understood, that's when Act 2 or Act 3 becomes important."

Got a dream but no cash? The Internet can help

Chris Waddell wants to climb Kilimanjaro in a wheelchair; George Del Barrio wants to make a film in Cambodia; Jeff Edwards wants to write a book about a science fiction writer: they want you to fund their dreams.

A website called Kickstarter.com is making it possible for people like this to raise sums ranging from a few hundred to tens of thousands of dollars to fund anything that captures the imagination of Internet users with a little money to spare.

It worked for Emily Richmond, a 24-year-old living in Los Angeles who plans to sail solo around the world for two years.

She has raised $8,142 from 148 people who will receive rewards such as Polaroid photos from the trip, an origami sailboat or a telephone call when she crosses the equator.

Landon Ray, who runs a marketing software firm called SendPepper.com, gave $500 after showing his 5-year-old daughter Richmond's video promising to keep donors updated by blog and send rewards such as a coconut mailed from a far-flung port.

"I thought this was a perfect learning experience for my daughter," Ray said, adding that he also dreamed of sailing the world himself, so it was partly about living vicariously.

Ray also plans to use his sponsorship as a marketing tool.

Many of the projects on the site are by filmmakers, musicians, artists and writers. Project creators set a time limit and a target. If they don't reach it, they get nothing.

Communities online and offline

Jason Bitner's pitch for $7,500 to pay for post-production of a documentary about the small Midwestern town of La Porte, Indiana, was so popular it raised $12,153.

The film is about an archive of portraits by a photographer who died in 1971. Bitner came across boxes of the pictures in the back room of a diner and has published a book. The film features interviews with the subjects 40 or 50 years later.

"This film is very much about community," Bitner said. "We decided early on we wanted to do community-based funding, sort of crowd-sourced things."

About a third of his 149 backers were friends and family. Others include residents of La Porte but also people from as far afield as Denmark and Australia.

Jonathan Scott Chinn, who is seeking $16,500 to make a short comedy-horror film called "Always a Bridesmaid," said the site was an efficient "creative marketplace."

"You're given the opportunity to make your pitch, and if it's really interesting, it will take off," Chinn said.

Independent singer-songwriter Brad Skistimas, 26, has been using the Internet for eight years to promote his one-man band Five Times August. He used Kickstarter to raise $20,000 to finance his new album "Life As A Song," due out October 13.

Donations amounted to pre-orders of the album, giving fans early access as well as additional material such as handwritten lyrics, photos and, for $1,000, dinner with the singer.

"It's a great way to get involved with fans," Skistimas said. "I was marketing to my own fans, so I said 'If you guys want more music from me, now's a great time to help me out.'"

Kickstarter co-founder Perry Chen said around $500,000 had been donated in the four months since it was launched, with more than 60 percent of projects achieving their goal. Until now the site has charged no fee, but from mid-September it will charge 5 percent of funds donated to successful projects.

Chen said so far there had been no scams that he knows of, though plenty of projects simply don't take off.

"The model works really well to prevent any type of misbehavior because the people who fund these projects; there's always a core group of the person's social network," he said. "Those are bridges people will work very hard not to burn."