Coinapult Relaunch Their Bitcoin SMS Service

Coinapult, which first introduced its BTC to SMS service in May 2012 to users in the US and Canada, has relaunched the service, making it available to users across the globe excluding the United States. Coinapult cited the regulatory minefield in the US as one of the reasons why the service is unavailable for use there.

Coinapult's offering differs to other mobile wallets in that it does not require a smart phone, data service or Internet connection in order for users to send and receive bitcoin. In the short to mid term, the service could appeal to users of dumb/feature phones who reside in the developing and developed world. Given Coinapult have made the service accessible world wide, they must believe both markets are worth pursuing instead of focusing on developing countries such as India, a hotbed for dumb/feature phones.

In the longer term though, it could be a different story. 2013 was the first year in which smart phone sales surpassed those of dumb/feature phones, with a total of 968 million devices purchased. This represents 53.6% of the mobile market, a number that is expected to grow given the increased availability and decreasing cost of low end smart phones. Despite this trend, the user base is and will likely remain large for some time and having tied in additional services, such as Locks, to their wallet, Coinapult could convince users of their mobile wallet to continue using the service regardless of which type of mobile phone they own.

Concerns have also been raised about the potential for a dishonest telecom company or rogue telecom employee to conduct a MITM attack in order to steal bitcoins from users. Coinapult acknowledged such a vulnerability exists and recommends users do not use the service for large amounts of bitcoin or for long-term storage.

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