The dictionary defines the word Mobile as able to move or be moved freely or easily. To put it another way, it means not restricted to a place or time. Mobile then suggests anything we can always take along with us, so we have mobile phones, automobiles, mobile houses, and the list goes on. But money has always been something we carry along with us. The point is to have it on you when you need it. However, in this case, the addition of mobile to money sets out something different from the money we are used to.
What is Mobile Money?
Mobile money is a technology that allows you to send money and receive money on your mobile phone and save money on your mobile phone. And while both have mobile in front, mobile money is not the same as mobile banking.
Mobile banking allows you to access your account and perform banking transactions from your mobile phone. Mobile money, on the other hand, has nothing to do with your account or even your bank. Rather, it allows you to keep money in a wallet on your phone from which you can send and receive money.
Mobile money involves no physical cash, although it is not a digital currency of any sort. It is just money saved in an e-wallet and can be converted to cash at any time. Its value is the same as regular money.
Mobile money can be used for just about anything, provided the other party involved uses mobile money. The mobile money service is offered by the network service provider, and the wallet is linked to your phone number. In many cases, the mobile money number is the same as the phone number.
Mobile money is fast and convenient. The money is on your phone; the money is received on your phone. You can confirm transactions in real-time, and there is no third party. It is directly from the sender to the receiver, and this also means cheaper transaction charges.
As long as you have your mobile phone with you, you have money with you. The wallet can be accessed anywhere and at any time as long as there is network coverage. Mobile money accounts are regulated by the Central bank. It, therefore, adheres to security protocol standards.
While mobile money has an established structure and has been around for a few years, it not as popular and widely used as other payment channels. It is popular in developing nations where the larger population have little awareness/need of card payments.