In a transformative move, the Czech Republic’s banking sector has embraced a groundbreaking system allowing individuals to send money using just a mobile number. As of Tuesday, the first six banks have implemented this innovative service, eliminating the need for recipients’ bank account numbers and simplifying the payment process. Further expansion of this initiative is anticipated, with more banks expected to join in the coming year.

“This service can only be used by clients of participating banks,” clarified Petr Hládek from the Czech Banking Association. The system comes with security measures, including an upper limit of 5,000 korunas and a lower limit of one koruna for each transaction.

Remarkably, the service covers a significant majority of payments made in the Czech Republic. According to the Banking Association, 68 percent of all sent amounts fall within the established limit. Some banks report an even higher percentage, with Jiří Suchý from Airbank noting, “The share of payments up to five thousand korunas is over 82 percent for our clients in the first half of this year.”

To avail of this service, individuals need to register their mobile numbers with the Czech National Bank through phone or online banking. This registration is essential for those intending to receive money through this method. However, sending money is feasible for clients of the participating banks without this additional step.

The adoption of this mobile number-based money transfer system aligns with the rising trend of mobile banking in the Czech Republic. Over the past few years, banks have witnessed a substantial increase in customers utilizing mobile banking services, with the average number growing by 110% from the beginning of 2019 to the middle of this year. This novel service not only streamlines payment processes for customers but also reduces the likelihood of errors during recipient details input, marking a significant advancement in the country’s banking landscape.

Article by Prague Forum