Mobile phones use Subscriber Identification Modules (SIM) based platform to provide financial services. The SIM based service enables its subscribers to send and receive transfer funds and make payments in the form of electronic money. Similar to the use of POS devices, customers register with an MNO providing mobile money services and either through agents or at the MNO outlets deposit cash (cash in) to load their e-money account and cash out (withdraw) from their e-money account.

Typically with the social transfer programs, beneficiaries are provided with SIM cards free on which the grant will be loaded from the Government. In cases where access to mobile phone is problematic for the beneficiaries, the project / Government provide phones for a cluster (village or community). Beneficiaries can then insert their SIM cards into the mobile phones when cashing out and remove them after the transaction. A major disadvantage of this approach is the SIM cards tend to get lost and often have to be replaced.

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