- Category: General
Mobile money is a service offered by telecom providers in Africa and countries around the world that enables its customers access to their money via their mobile phones. It is a safe convenient means of accessing funds especially in developing countries where nearly half of the population is marked as unbanked.
A major milestone that mobile money has contributed too the financial sector of the economy in many developing countries; among them Kenya had the ability to send money easily using mobile phones. Before the idea was brought to the market, sending money was a difficult task, often unsafe and costly for most people. Sending money via banks was also very expensive that the middle class and working poor found difficult to afford. This was a major issue in the economy, because the working poor and middle class make up a large percentage of the income bracket and their inability to move money affordably saw a crippling and stagnant economy. With the introduction of the mobile money transfer system many can now send money easily and affordably to any part of the country. In order to make the transfer of money successful money agents was setup around the country to ease the access to the money.
The virtual banking services have changed the lives of many Kenyans by easing the access to banking services regardless of the location. Efficiency and the simplicity of using mobile money is what has made it favorable to the community at large. Banks in developing countries do not have a well established online banking platform. This forced people to carry out transactions physically that resulted in loss of time especially in the bank queues and hassle. Though still in the process of being developed fully, mobile banking services are being offered by the major telecoms networks in Kenya. These banking services have enabled the lower class access to bank services like savings accounts and loan options that were not available before. These services have enabled investments in developing countries and helped in improving businesses.
The services are offered 24/7. You can send the money at anytime which has been greatly beneficial to businesses and in driving developing countries like Kenya to a 24 hour economy. There are additional services offered: Subscribers can pay bills, electricity and water easily; they can buy airtime at no extra cost and also buy goods from shops using mobile transfers. It is a safe and convenient way to do business and the rest of the world can learn to grow their economies using the same methods employed by Kenya in the mobile money industry.