‘Mobile Money’ seems like the future of the modern day economy. Financial inclusion has indeed found its survival with mobile money being a significant contributor. So what is this latest buzz? And how is Mobile Money different from traditional cash transactions? I think it is time for everyone to understand it by now- the attraction is all about the ease involved in making a transaction as compared to traditional banking. Who does not wish a fast moving space which offers the users quick money transfers, bill payments in a jiffy, easy receiving remittances and others? And guess what- these features not restricted to smart phones alone. There are few USSD codes which allow access through basic mobiles as well.
A World Bank Report Says: only 53 per cent of the Indian population i.e. 636 million people have bank accounts, while close over 1,000 million have mobile phones.- So, investors know their leverage here!
- Payment Bank by RBI using Unified Payment Interface: Mobile Banking Stepped Up:
With the Reserve Bank of India’s in-principle approval to the Payment Banks through the Unified Payments System, the public sector banks are all geared up with their mobile wallet apps to grab the untapped potential which was otherwise hardly possible. So imagine the usage of these 1000 million to the fullest potential; UPI might very well pierce itself into many more homes than all the mobile wallets put together!
While Vodafone’s M-Pesa has penetrated to almost a micro level in Kenya by capturing about 93 per cent of user base, it is still in premature stages in the other areas of the developing world. Safaricom and Vodacom, the largest mobile network operators in Kenya and Tanzania continue to promote and encourage the M-Pesa since 2007: mobile based money transfer, financing and microfinancing service can’t get easier! It has also proven its potential beyond borders across countries like Bangladesh, Pakistan, Zimbabwe, Uganda and Tanzania too. Not far away from the day when the concept sways all across the world!
- Success Ahead- Be it Private or Public Sector:
PayTM, Citrus Pay, Oxigen, Mobikwik, Freecharge and mRupee are a few private sectors owned mobile wallets while ‘Buddy’ is owned by the public sector bank, State Bank of India. All of these offer a quick and easy mode of cash transfers and receipts where the user does not need to hold an account with the bank. With the foray of both public and private sectors into the mobile wallet space, this informal mode is fast growing for its ease and convenience- whether it is a service or digital transaction or hard goods!
So, prep yourselves up for the wonders of Mobile Money- not only serves as the easiest mode of transacting with money but also overthrows the problems faced with huge volumes of cash-based transactions like money laundering, accumulation of black money by evading tax, counterfeit currency etc. It acts as a greatest tool for financial inclusion especially in the emerging economies.