How Mobile Money is Helping in Improving Investments

How Mobile Money is Helping in Improving Investments

So much has changed since the innovation of Mobile phone telephony. This technology must be hailed as one of the most prolific technological developments that have touched and changed the lives of millions around the world; social classes notwithstanding. There are many benefits that the mobile phones have bought such as ease of internet access, communication anywhere anytime, access to numerous applications both for business and leisure and many others. However, the most important in the invention is Mobile money transfers.

Inventions can come from and where and anyone; the poor and the rich, educated and uneducated, or from the third countries. As the saying goes, “necessity is the mother of inventions”, mobile money transfer pioneered in Kenya- a developing country in Africa. Due to limited access to banking services, frauds, crime and lack of credit card services, there was a need to fill in the gap. This is how the pioneer service called Mpesa (Mobile Pesa/Mobile Money) came about. There are many others that followed that are provided by mobile service providers such as Orange, YU, and Airtel. The service has been operational for over a decade now and has gone global attracting many awards from different bodies.

Using the service is very simple and anyone can use it no matter the age, class, academic level, religion, origin, and place; it's the solution for all and tomorrow! Here is the procedure used to transact cash on your phone;

1. First, you have to register your phone number with your provider service; this ensures that you accept their terms and conditions of using the service and makes it legally known that you are the rightful owner of the number. Here, you will be given a start key that will enable you to create your password; it must be kept secret and well-guarded! Once registered, the menu on your phone is instantly activated.
2. You will be required to top up or deposit the cash you want to spend. This is easily done at the selected banks, wide-spread registered agents, and shops, or transfers from other users. Once you have done that, the amount is reflected as your current balance.
3. At this point, you can send money, withdraw, buy goods, pay premiums and make installments, pay utility bills, buy stocks, pay court fines, pay taxes, buy airtime, open virtual savings accounts with selected banks, transfer cash from and to your bank and Mobile account, borrow loans and many others.

NB.// To registered you must have attained the age of 18 years and above, or have a valid identification document to withdraw and deposit.

Advantages of Mobile Money Transfers

i) Easy to use- the systems have friendly menus
ii) They are safer than carrying liquid cash
iii) Very low transaction fees charges
iv) Very convenient since it can be used anywhere, anytime and by anyone over 18 years
v) All reports are in real time with text messages sent as evidence
vi) Customer support comes in two types; the staff at the service providers department and self-help menus where you are guided through text menus
vii) The systems’ security is enhanced making it very hard to be manipulated to steal cash and personal information
viii) It is a great source of revenue for the governments (taxes), the business users and also creates employment.

Limitations Affecting the Mobile Money Services

i) Fraudsters have used it to extort money from account holders through intimidation.
ii) Across the border, transactions use third parties hence charges are higher.
iii) Unscrupulous dealers have conned account holders on deposits by failing to actually deposit the amounts blaming it on technical hitches.
iv) Can easily be used as a money laundering platform if not keenly monitored
v) Encourages impulse buying and excess borrowing leading to falling of credit scores of the account holders.
vi) Once the password is stolen or hacked, the person can transact freely.
vii) Repellant by the developed world due to the notion anything from the developing world is substandard.

Measures Used to Curb the Limitations

i) To perform all physical transactions such as deposit and withdrawal identification is required such as the identity card, driving license and passport.
ii) To eliminate money laundering there are maximum daily limits that can only be transacted
iii) One can easily change the password at any time and place if deemed lost to suspect persons.
iv) The banking money regulators keep a keen eye on a daily basis on all transactions conducted to pinpoint any deviations from the laid down regulations either by the users or the providers
v) There is increased sensitization and promotion in the developed world on its benefits, security, convenience, and ease of use.

What you can achieve by using the Mobile Money transfers

There are very many activities and actions that can be achieved by using the Mobile money transfer services. Here are some of them but not all- the list is endless:

i) You can send and receive money to and from clients and suppliers
ii) Buy goods from most retail outlets including supermarkets, hardware, and many others
iii) Pay for your insurance premium such as a car, property, medical and others, make loan repayment or installments, and mortgage.
iv) Pay school fees, medical care, and staff salaries
v) Shop online from selected stores by buying debit cards with much ease
vi) Pay for your cable televisions, the internet, and other bills
vii) Pay your credit card balance

The Effect of Mobile Money Transfers on Investments

i) Reduced costs on transactions such as paying rent
ii) Reduced need for travel to collect and pay money owned
iii) Being real time, there is convenience especially when cash is urgently needed in other locations such as to pay your home improvement contractor
iv) Easy access to cash advances on low interest and payable in periods of your choice such as daily, weekly and month
v) You can access your bank account from your phone and make transfers to your mobile money account then withdraw from the nearest agent and vice versa.
vi) You can receive and send cash through other means such as Moneygram, Western Union, and Pay Pal on your phone. This is beneficial to people living in different countries.

The Future of the Mobile Money Services

Anyone can agree that the future of the mobile money transfer service is brilliant. There will be more subscription to the service globally. In fact, mobile money transfers will gradually replace the use of credit cards for it will be safer and more convenient to most users; you do not need swiping machines or the internet to transact your businesses.