The U.S. Agency for International Development, tasked with the administration and distribution of international aid from the U.S. government, announced it is forming a new partnership with Citi. The partnership is aimed at providing financial inclusion for the world's un- and underbanked by encouraging "mobile money" technology in developing countries. It was announced at the USAID Frontiers in Development forum held at Georgetown University.

"Mobile money is a game-changing endeavor with the potential to improve lives, create jobs, catalyze new enterprises and expand financial inclusion, particularly in the emerging markets that are critical to the growth of the global economy," said Citi CEO Vikram Pandit.

Pandit said Citi is proud to work with USAID to advance mobile money adoption with tools and solutions that eliminate barriers to access, improve security, and enhance education.

Though there are nearly five billion mobile phone users globally, nearly two billion of them have no access to basic financial services. Their only option is cash, which opens them up to theft, fraud and high costs for lending and remittance.

Through the new arrangement with Citi, USAID will work with governments, donors, industry and other participants in the payments system. The organization plans to provide more than $23 million to support local mobile money platforms. For its part, Citi will integrate its core banking services with mobile money platforms to provide a connection between banks and mobile-based payments services. 

"The ability to store and transfer money, as well as to make small payments using mobile phones, has the potential to lift millions out of poverty, just as the Green Revolution did in the 1960s," said USAID Administrator Raj Shah. "Our partnership with Citi, a global banking leader, will accelerate implementation of these new services in a smart and safe way."

According to USAID, the partnership will expand its ongoing work to encourage mobile technology solutions. Initially, USAID will focus efforts on nine countries with an emphasis on Colombia, Haiti, Indonesia, Kenya and the Philippines.

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