Mobile Money can simply be defined as a financial service that comes under the category of mobile payments. Because of this ease of use Mobile Money is very widespread in countries with under-developed banking systems.
Mobile Money Management is a process of managing your money which includes transfer fund, receiving fund, making payments (like light Bills, DSTV bill, recharge card, etc), etc, through your mobile phones.
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How to start using Mobile Banking:
For you to start using Mobile Banking virtual accounts must be created in order to be able to transfer money without physical bank accounts. Mobile Money systems consist of four players: the sender, the recipient, and two agents. The sender and recipient each have a virtual account with their provider for their cell phones; the two agents have actual bank accounts.
NOTE: To start using Mobile Banking you need to have a mobile phone that is connected to the internet.
How does Mobile Money work?
The transfer is simple: the sender chooses the service from a menu on his cell phone, e.g. Money Transfer, enters the recipient phone number, the amount and the security PIN. The recipient gets a message on her phone that money has been credited her account and the sender gets a message that the money has successfully been transferred.
Benefit of Mobile Banking
Transfer funds between banks or accounts, deposit or withdraw funds, or pay bills by mobile phone. Purchase items, whether physical or electronic, by mobile phone.
Advantages Mobile banking
- It utilizes the mobile connectivity of telecom operators and therefore does not require an internet connection.
- With mobile banking, users of mobile phones can perform several financial functions conveniently and securely from their mobile.
- You can check your account balance, review recent transaction, transfer funds, pay bills, locate ATMs, deposit cheques, manage investments, etc.
- Mobile banking is available round the clock 24/7/365, it is easy and convenient and an ideal choice for accessing financial services for most mobile phone owners in the rural areas.
- Mobile banking is said to be even more secure than online/internet banking.
Disadvantages Mobile banking
- Mobile banking users are at risk of receiving fake SMS messages and scams.
- The loss of a person’s mobile device often means that criminals can gain access to your mobile banking PIN and other sensitive information.
- Modern mobile devices like Smartphone and tablets are better suited for mobile banking than old models of mobile phones and devices.
- Regular users of mobile banking over time can accumulate significant charges from their banks.