Banks are for the privileged. That’s the simple thesis driving the development of Abra, a startup that is taking out the middle man (the bank) when it comes to financial transactions. No more ATMs, no more physical bank locations — instead, Abra promises an all-mobile experience that involves person-to-person transfers, deposits, and withdrawals.

In a couple weeks, interested users in the U.S. and the Philippines will be able to try out the novel concept firsthand when it officially launches.

With Abra, all of your banking lives on your phone. You can withdraw funds, deposit cash and send money using the app.

The idea is that all banking should be as easy as sending a text message.

“In a hyper-connected world, it is astounding to me that you can’t pick up the phone and instantly send money to any other phone number in the world,” said Abra founder Bill Barhydt, a former software engineer for Goldman Sachs.

“Traditional banking is really good at serving the global 5% to 10% of consumers who reach a certain income level,” Barhydt said. “The reality is, the majority of the planet is a cash-based economy and banking doesn’t work for those people.”

Here’s how Abra works: Say you need N20 000, in cash. To get it, you would open the app and find a bank teller near you using your phone’s GPS. Bank tellers can be regular people, as well as businesses like convenience stores. If it’s a person, they’ve had a background check through Abra.

Once you find a teller, you would meet somewhere convenient to both of you. Each person then gets a QR code, which one person scans to validate the transaction. Once validated, the teller would give you N20 000.

A deposit works the same way, just in reverse.

Except, unlike your friend, the teller makes money by charging a fee, which can be any amount they choose. (Abra recommends they charge around 1.5%, depending on location and convenience.)

Abra charges 0.25% per transaction, which is the company’s only involvement in the actual exchange of currency.

Abra is just as anonymous as cash. Other than a phone number, no data is collected. (Unless you’re a teller.)

Abra is currently in beta, but is launching in the U.S. and the Philippines in a few weeks. Barhydt said the company has signed up tens of thousands of tellers in those countries, and it will be available around the world in the next year.

Barhydt’s only advice for those who sign up with Abra?

“Don’t lose your phone.”

- See more at: http://bizwatchnigeria.ng/with-abra-you-wont-need-a-bank-account-anymore/#sthash.7PsPoGoM.dpuf

Its the security aspect of it that will determine its effectiveness.
Anyway, a good one there.

Lovely concept

Why can't i just tell my friend who wants to Pay me to send money to my Bank account? Why would i use your Mobile App when there is an ATM Machine just opposite my Apartment? Or with my Bank's Internet and Mobile Banking? Why your App?

Cool...people could get jobs from this concept ...they can become registered agents