Sending Money to Mobile Numbers: Czech Banks Introduce a New Service

Czech banks are introducing a new service allowing people to send money to others without knowing their account number. Instead, the recipient’s mobile number will be sufficient to complete the transaction. The service is expected to launch in the fall of this year.

Nine banks have already expressed interest in participating in the service, including Česká spořitelna and Komerční banka, two of the country’s largest banks. To enable this new service, the Czech National Bank will maintain a registry of account numbers linked to mobile numbers. When someone initiates a payment, the sending bank will contact the registry and retrieve the recipient’s account number based on their mobile number.

The recipient must register their mobile number with their bank to receive these payments. This process can be completed through mobile or internet banking and requires a one-time verification code sent to the registered mobile number. Once registered, the recipient can receive payments immediately without contacting the central bank.

The new service will function similarly to mobile and internet banking, with users entering the recipient’s mobile number rather than their account number. The sending bank will then retrieve the recipient’s account number from the registry and complete the transaction. Payments will be processed immediately and visible in the sender’s mobile or electronic banking app.

There may be slight differences in the service offered by different banks, such as limits on the amount that can be sent through this service. For example, Komerční banka will apply the same limits to mobile payments as payments made to account numbers, with a maximum transfer of 400,000 Czech koruna.

Introducing this new service is expected to benefit those who do not have access to traditional banking services or may not be comfortable sharing their account number. It may also make it easier for people to complete transactions quickly and easily without knowing the recipient’s account number.

It is important to note that to receive these payments, the recipient must register their mobile number with their bank, which may involve additional steps. However, once registered, this new service is expected to make sending and receiving money in the Czech Republic faster and more convenient.