Transactions cannot exceed 1500 CUP and the total balance of that wallet cannot exceed 5000 CUP

Etecsa could be a way to route remittances from abroad which will now arrive in the form of international recharges via mobile phone. (Photo: Cuban newspaper)

Cuban Telecom Company Etecsa, They obtained a permit from the Cuban Central Bank to conduct financial activities Thus enabling an electronic wallet that uses mobile credit to purchase products in stores that have the Transfermóvil platform.

Thanks to this license, Etecsa can be a way to route transfers from abroad that will now arrive in the form of international recharges via mobile phone, but will generate digital money from which to purchase the products.

How will electronic money work for a mobile scale?

I assume Receive an international recharge on your mobile phone From abroad or if this fails, deposit the money into your cell phone balance, with that money – which was originally for making calls, SM, or connecting to the Internet – you can now transfer it to an e-wallet.

An electronic wallet is a payment system that replaces cash and magnetic bank cards. It is used for low volume and high volume transactions.

In the case of Cuba, these transactions will be made through the Transfermóvil mobile application, also developed by Etecsa, and will have a limit.

Transactions cannot exceed 1500 CUP and the total balance of that wallet cannot exceed 5000 CUP. Analysts warn that these limits may be initial to testing the system and thus could be increased.

Another limitation of the e-wallet that Etecsa implements is that it is not available to attract third-party resources through cash deposits. That is, all cash must first be entered into the mobile phone balance and then transferred to the associated e-wallet, or if this fails, enter the money into the e-wallet through a bank transfer from magnetic cards. The latter is also made by Transfermóvil.

In the event that the balance is withdrawn from the e-wallet, this will be possible in three ways:

• Buy in stores using Transfermóvil
• Balance transfer between electronic wallets
• Transfer between bank accounts linked to the wallet

This new opportunity opening up in Cuba is part of the computerization of society, an aspect in which the country lags far behind the rest of the world that has already embraced these technological developments for the sake of the comfort and safety of its residents.

To carry out these tasks, the Cuban Central Bank imposes on Etecsa the obligation to reconcile the operations executed with RED cards, as well as developing an appropriate system for managing risks of operations, counterparty and money laundering, and enabling internal control and customer service systems that ensure consumer protection.