MMID Full Form – Mobile Money Identifier

MMID Full Form

MMID Full Form – Mobile Money Identifier

Mobile Money Identifier (MMID) is a seven-digit number, issued by banks for effecting financial transactions through the user’s mobile phone.

In this context, mobile payment solutions can certainly help by providing an effective channel for money transfer for both categories of the un-banked.

Both the remitter and the beneficiary are required to have their MMIDs to effect a fund transfer through the mobile phone.

A unique MMID and mobile number combination helps in identifying the beneficiary’s details. Multiple MMIDs can be linked to same mobile number.

Mobile payments is a mode of payment using mobile phones. Instead of using methods like cash, cheque, and credit card, a customer can use a mobile phone to transfer money or to pay for goods and services.

The traditional banking industry can not cater to the needs of India’s large rural populace.


If this need can be addressed, via an appropriate business model, then managing that loan in terms of repayments is much easier over a mobile device.

Mobile Payment Forum of India (MPFI) is the umbrella organisation which is responsible for deploying mobile payments in India.


India has a vast non-banking population, most of whom reside in the rural areas.


Setting up a conventional bank branch in a rural area would require considerable amounts of money to be spent on infrastructure and additional personnel.

In May 2011, the net monthly addition in terms of the number of subscriptions was 13.35 million. Of those, 7.33 million were from the urban segment and 6.02 million from the rural segment.

MMID Full Form – Mobile Money Identifier


Most of rural Indians are cut off from access to basic financial services, which include deposits and withdrawals from a trusted source.

Customers wishing to avail themselves of this service will have to register with banks which provide this service. Currently, this service is being offered by several major banks and is expected to grow further.

A customer can transfer money or pay for goods and services by sending an SMS, using a Java application over GPRS, a WAP service, over IVR or other mobile communication technologies. In India, this service is bank-led.

MMID Full Form – Mobile Money Identifier




India is the world’s largest-growing mobile payments market.

Given this context, it is possible to consider the mobile phone as an economically viable instrument to enable inclusive access to financial services.

The share of the urban subscribers is 66% and the share of the rural subscribers was 34%.




The subscription growth rate on a monthly basis is 55% for urban segments and 45% for rural segments.


The Mobile phones are quite common even in the remote villages.





Mobile payments can have a large impact on interaction with government services and are being explored in India.


And those who do not open accounts due to lack of banking infrastructure, those who for various reasons (such as poverty and lack of valid identity papers) do not pass the required account opening criteria, and those who currently see no requirement to open an account.

Mobile payments are convenient to track and account for, key requirements in government payment transactions.

Mobile payments could also open the possibility for new business models, as now one would have the ability to pay and receive even small sums of money, almost instantaneously.

Government to peer payments can also be made easier by using mobile payment channels and is being explored for schemes like NREGA.


In India is the second-largest telecommunications market and has 1100.37 million mobile phone customers.


The un-banked population can be classified into broad categories.

MMID Full Form – Mobile Money Identifier


A variety of value-added services based on mobile payment transactions are already entering the market.



The mobile phone industry is growing at a rate of over 200 million per year. It was expected to touch the one and a half billion mark by 2015.


a common need is a low value, low cost loan, for which the un-banked can typically offer no collateral.


To open an account, one has to satisfy the bank’s KYC (Know Your Customer) norms. For the un-banked, providing a valid identity is a challenge.


To that end, the Unique Identification Authority of India (UIDAI) has embarked on a mission to offer a single source of identity verification which can also be used to open bank accounts.


This process can be broken into three aspects: opening a bank account, managing the account, and having access to a set of financial services and products.

MMID Full Form – Mobile Money Identifier




The key challenge is to determine if it is possible to devise demand driven financial products and services which make for a compelling reason to open an account.

Managing the account is something that mobile money solutions will make much easier, faster and cheaper, both for the customers and the banks.



The user’s mobile number MMID are uniquely linked with his bank account number, and is one of the key inputs to facilitate fund transfer.

MMID Full Form – Mobile Money Identifier


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