Regular use of Mobile Banking may lead to extra charges levied by the bank for providing the service. paying for goods and services using mobile device. agents, governments, corporations etc.). Although a series of banks have introduced ATM cash deposits, the process is still unfamiliar to many Kenyans. Mobile money allows one to transfer money or make payments with The system operates as back-end as service model from a secure cloud with offering as follows. It presents a number of advantages, including cost and time savings, increased sales and reduced transaction costs. using their mobile device under financial regulation is known as mobile money. With statistics showing that Ghana’s e-commerce is largely dominated by Mobile Money transactions, it is only fair and wise that we are all registered for it. i.e. Nairobi The balance in your e-money can be used for any transactions, wherever and whenever. Mobile money applications are encrypted to allow access to only the owner. Although mobile money has provided smooth transactions over time, cash is still widely used in Kenya. Mobile Phones Aren't All Bad. Network problems and reliable and fast internet connectivity... 2. Users can, The best option is to be able to transact with all the three: cash, mobile money, debit cards. Anyway, have you ever wondered what would life be without M-Pesa? digitized format which allows easy payments and other money related transactions. Mobile phones mostly affect the study of the students. Managing the coronavirus crisis, Safety precautions to reduce the spread of Coronavirus, Chamas- the local Kenyan savings and investments, 9 Side Hustle Tips for the Employed Kenyan, 5 Great Apps to Help You Manage Your Finances, Home’s budget – how to manage it successfully. The Advantages and Disadvantages of Mobile Money on the Profitability of the Ghanaian Banking Industry @article{Opare2018TheAA, title={The Advantages and Disadvantages of Mobile Money on the Profitability of the Ghanaian Banking Industry}, author={Edmund Amponsah Opare}, journal={The International Journal of Management}, … Hard cash is best for small purchases and everyday finances. Following are the benefits or advantages of Mobile Money: However, while using mobile phones, we have to keep in mind that what are the advantages and disadvantages of mobile phones. Cost. ➨Adoption of mobile money usually requires multi-party involvement (viz. MNOs (Mobile Network Operators), Payment Gateway Providers, Payment Processing Agents, Mobile money has allowed for the unbanked to finally be included in the banking process. The best option is to be able to transact with all the three: cash, mobile money, debit cards. ➨Mobile money has lower transaction costs with improved security compare to credit card method. Below are advantages and disadvantages of electronic money. Users can borrow low-cost loans, airtime and data bundles. No one does that anymore. ➨Lack of interoperability between networks restricts reach and makes transactions cumbersome. In developing countries where health care is paid out of pocket, serious … Difference between SC-FDMA and OFDM Paisabazaar.com brings you the biggest advantages that a […] • The figure-1 depicts mobile money interfaces. To sum it up, with mobile banking, you can save up to 26 hours and 434$ per year. Kenya. Over the years, the evolution of and use of mobile phones and other mobile devices such as tablets has offered society the opportunity to access financial services such as mobile money. The invention of the cellular phone or mobile phone in the year 1947 at BELL labs in the United States has come a long way from being a huge device interconnection of several antennas. Mobile banking facilitates customers to leverage services beyond basic financial transactions like sending and receiving money. Gold and silver coins are accepted even by foreigners, as they have got some intrinsic value. Accessibility. So is this a good thing or a bad thing? On top of that, you will need a rather large wallet to carry and store your money. So yes, for large amounts, it’s better to settle for mobile money. In today’s world, we have many relationships. ➨It is advisable not to provide passwords and other details to anyone. But it is vulnerable to internet fraud and could potentially increase business expenses. Smart phones are needed for this purpose. More and more people are also using mobile phones to make such transactions. It offers a safety net. List of the Disadvantages of Electronic Wallets 1. Therefore, if you do not have mobile money, your purchases are limited to only cash-accepted transactions. Mobile money applications are encrypted to allow access to only the owner. Electronic payment allows your customers to make cashless payments for goods and services through cards, mobile phones or the internet. For e.g. Hence it increases transparency. • E-shop Integration This might not be the case for cash. Part of the appeal is the ability to access your account on a mobile device whenever … FDM vs TDM Despite technology making life seamless in terms of purchase, some people still prefer to stay old school and transact with hard cash. Find out more. Disadvantages of Mobile Money Security - While sending money via mobile money transfers is safe, it is still possible that users may receive fake messages called "Smishing" which ask for Bank details and because of this, many users fall victim to scam and theft. even when there are no banks nearby. Time is the most precious thing for the students but the excessive use of mobile phones wastes most of the precious time of the students. Why is that? Mobile money model consists of banks, The benefits of mobile money are by far great. Turn on the flashlight function on your mobile to find your keys in your purse as you … The biggest advantage of accepting mobile payments for small business owners is that it makes it easier for your customers to pay you. (Availability to move money from bank to phone.). Zenka Finance Limited The Disadvantages of Mobile Banking Security. It is true that many cases of corruption occur using cash, as it is more difficult to control. This post will look at the advantages and disadvantages of mobile phones in personal use and in business. • It can hold not only money but also coupons, loyalty points, value and Don’t waste your time because of cell phones, don’t use it much, always try to less use of mobile phones and save your time and spent it on good ways. Phone: +254 (0) 207650878 Following are the drawbacks or disadvantages of Mobile Money:➨The customers are required to obtain compliance from the respected banks. ➨The customers are required to obtain compliance from the respected banks. 1. A handy torch. MTN Mobile Money registration is quick and easy if you follow the right steps. However, the less convinced ones point out that those who really wanted to disappoint would eventually find electronic means to do so. Payment platform Providers, Mobile subscribers and customers. Introduction: difference between OFDM and OFDMA Some thieves will send you a message to make you believe that they sent you a message without doing it … Hard cash is weight, especially if it is a significant amount. To deposit cash to your bank account, you might have to wait in line at your local bank, fill some paperwork then get served by a teller. This increases financial security and reduces inherent risks of cash handling such as loss, theft or fraud. More Practical To use electronic money, you have to charge the balance. An interesting fact is you do not get charged for depositing money to your phone, but you will get charged to withdraw it. pricing/features selection. People are … Mobile money is now operated by four out of the six telecommunication companies (telcos) in Ghana (Quist, 2015). Mobile Wallets or e-Wallets have been one of the biggest beneficiaries of the government’s demonetization move, with India suddenly waking up to the convenience they offer. On the other hand, mobile money is virtual and portable. Currently, the pandemic: COVID-19 has caused the Kenyan government to emphasize the use of M-Pesa over cash. Disadvantages of Mobile Money in Cameroon (Cons) Mobile money is terribly easy to use, as long as the fraud techniques are countless, there are many colours. Mobile Wallet - Advantages and Disadvantages 1. See how mobile money is a value add? It is not fully available worldwide. operate on a large scale. Bank to M-Pesa to buy goods to deliver at your doorstep. Save my name, email, and website in this browser for the next time I comment. that only accept repayments through M-Pesa. The ability to send instant and non-intrusive notifications to … ➨The ignorance and illiteracy from people need to be reduced in order to have agents, governments, corporations etc. • Peer to peer loans • E-wallets Advantages and Disadvantages of Mobile Phones – Today, in this article, we will read or discuss the main advantages and disadvantages of mobile phones. Mobile banking users are at risk of getting fake SMS messages and … membership cards etc. More than connectivity, security issues are at the forefront nowadays. However, your phone can still be stolen with cash on your sim card. On the other hand, mobile money exists virtually with passwords for protection. There are instances where hard cash will be better and vice versa. Mobile banking is the act of making financial transactions on a mobile device (cell phone, tablet, etc.). The supporters of electronic money point out that one of the main advantages is that it would end fraud and black money. Before netizens hoarded lots of cash in the name of ‘keeping it safely’. In catastrophic times, using mobile money is a safer means of money transfer. It’s a laborious task and takes a lot of time compared to mobile money transfers. With M-Pesa, you can open interest generating accounts like M-Shwari, which is free for depositing and saving. Where and when you want to use your money will determine which way to go. Being all the credit in computers and be able to follow each movement, it would be complicated that nobody could hide something from the public treasury. Cash or mobile money against fraud Cash is vulnerable to theft. Mobile money prevents direct contact amongst people hence a healthier lifestyle. Current trends are in favour of mobile money transfers. FDMA vs TDMA vs CDMA With the help of M-Pesa pay bill numbers, you can now deposit cash instantly from your phone to your debit account and vice versa. Gone are the days of hiding money in mattresses or holes in the wall. wide acceptance of the system. Sending hard cash to your friends and family via courier or Posta is quite insecure, time-consuming and expensive. ). Failing to do so will lead to scam and theft. Instead of having customers pull out out their credit cards, cash, or write out a check mobile payments support contactless payments via their smartphones. You can top up at the merchants and now is easier to find the merchant. In times of financial emergencies where banks and ATMs are inaccessible, a mobile money user is more inclined to solve the issue than a cash holder- who might not have the cash at that moment. Follow these simple six steps (if you don’t already have a well registered MTN Sim Card) for your MTN Mobile Money Registration in Ghana. At the same time, it would be unfair to paint the cell phone industry under such a negative air. • Mobile Money and Mobile banking With the economy on skates, almost every Kenyan has to adapt to e-commerce and e transfers. It is simpler for emergencies to be solved using mobile money because most companies have made room for such. Mirage Tower 2, 12th floor, Every person uses a mobile phone for daily life communication and business purposes. Not to worry, you can always call your service provider and replace your phone and sim and still have access to your money. Today’s cannot complete his work even for … M-Pesa is an initiative between mobile phone giant Vodafone and Kenya's Safaricom.Recent mobile money Reports in Kenya indicate that Over 50% of the adult population use the service to send money to far-flung relatives, to pay for shopping, utility bills, or even a night on the tiles and taxi ride home. This provides Do you prefer some money in hand or digital mobile money? This increases accessibility in rural areas. E-mail: [email protected] Push Notifications and instant updates. The number of retailers which accept payments from an electronic wallet depends on the actual wallet you choose. It can fit in the palm of our hand and have features that the first inventors couldn’t even fathom. great comfort to the customers. ➨It enables cashless payments which reduces dependency on cash and allows tracking of transaction records. For big purchases, one requires to carry a lot of cash. Now, financial institutions dealing with monetary distributions like fintech apps and SACCOs are able to carry their operations smoothly. You can find agent centres in your area, just look for the brand colours and signages. Instead of having your hard cash redundant, wouldn’t you rather deposit it safely in a savings account and make a profit? Currently, mobile money allows you to send money to people around the world, allowing secure, comfortable and instant money transfer within the click of a button. E-money, or electronic money, is money that you exchange electronically, as opposed to actual currency notes or coins. Difference between TDD and FDD Mobile money was first introduced in Ghana in 2009 by MTN Ghana Limited. Waster of Energy. That way, you don’t get affected by the transaction charges for less than KSh 1000 purchases. Now you can make all types of financial investments from term deposits to mutual funds, equity and even purchase insurance plans. The main merit of these relationships is that it is healthy and good for us. Mobile services have come up with methods to limit mobile money fraud, such as: Mobile service providers are further able to track down fraud cases and block your sim card from further purchases if reported. Banks have! With apps for the Android and Apple platforms, using mobile payments for most transactions is starting to become more mainstream. It is configured to your phone other than carrying it in your pockets. Difference between SISO and MIMO It can be used for personal banking and international transfers, such as remittances. Abbey (2016) reported that the penetration of mobile money in the Ghanaian economy has increased significantly in the last 4 years, since its inception in 2009. They will eventually change the way most of us spend money on a daily basis. Mobile money is easily transferable from one person to another and is very convenient. It Becomes Increasing Difficult to Disconnect from Your Phone. Kenyans who prefer cash to mobile money rarely use M-Pesa services, therefore, are likely to have no money in their mobile money accounts. • A digital wallet is virtual wallet which stores all the contents in Mobile banking is a new term in digital banking, we can check account balance, transfer money to another account, open Fixed Deposit, open a new account and closed dormant account, pay bills and do many more through mobile banking. Going cashless means banks and other financial institutions can secure more money and run smooth operations. With M-Pesa, you can open interest generating accounts like M-Shwari, which is free for depositing and saving. ➨They are distributed by vast network of agents which provides person to person contact and • Automated User and Merchant Onboarding ➨Mobile money system provides services to the people who are geographically Today, there are very few persons who are not using a mobile phone. CDMA vs GSM, ©RF Wireless World 2012, RF & Wireless Vendors and Resources, Free HTML5 Templates. In today’s world, mobile phones have completely changed daily communication life to connect with peoples. ➨It requires app to be installed which is not available in all the mobile phones. The trust is needed between these in order to have successful mobile money platform. DOI: 10.21522/TIJMG.2015.04.02.ART004 Corpus ID: 86864705. It has increasingly become difficult … Mobile money does not charge you for the deposited cash, i.e. Study loss Due to High Usage of Mobile Phones: The excessive use of mobile phones is one the biggest disadvantage for students. Relationship with your friends, Family-Members. We are reading the disadvantages of mobile phones, … In addition, mobile money services come with cash rewards and promotions for their esteemed customers. The positive here is that now banks have agents to assist the unbanked to deposit smaller amounts with ease. Disadvantages of Mobile Phone Waste of Time. Compatibility. Mobile money enables quicker, cheaper and more reliable money transfers over greater distances. • It provides support for financial services such as payments, transferring money, Banks and mobile money platforms have integrated their systems to the extent of syncing purchases from the comfort of your home. You would think in this day and age people would have now normalized e-payments, yet people still prefer cash! ➨Mobile money platforms are accessed through most basic mobile phones with low transaction costs. Anyway, have you ever wondered, Every support counts. inaccessible and/or having very low income. • Card Payments acquiring and clearing for merchants Hence within limits the issue of paper money comes very handy to the government at the time of dire need. Get yourself a registered line that allows mobile money and try to at least have some cash on your phone like KSh1000 every month as a short term backup plan. Cash is vulnerable to theft. P.O. • The examples of mobile money solutions include Alepo, Obopay, DeeMoney etc. The introduction of M-Pesa in Kenya felt its first real breath during the post-election crisis of 2007. ➨Using this solution, money can be transferred almost anywhere, BOX 29107-00100 , you can now deposit cash instantly from your phone to your debit account and vice versa. • Remittance Solutions. Here are two of the largest mobile money operators in Africa and beyond: MTN – MTN delivers mobile money service to 22.2 million people in 15 countries worldwide. On the other hand, money is considered to be the one thing that carries most germs. Mobile network connectivity is the biggest impediment. ➨Lack of interoperability between networks restricts reach and makes transactions cumbersome. It mentions Mobile Money advantages or benefits and Mobile Money disadvantages or drawbacks. Advantages. Some transactions like online purchases are limited to mobile money and debit or credit cards, like the instant mobile loans that only accept repayments through M-Pesa. A mobile money operator is a mobile money service provider that develops and delivers financial services through mobile phones and mobile telephone networks. Provision of identification upon cash transaction, Some transactions like online purchases are limited to mobile money and debit or credit cards, like the. It is also advisable to always have cash in hand when travelling long distances and it comes in handy when your phone is out of charge. Whereas mobile money is flexible, you can hold as much money on your phone. With the average American spending an average of two to four hours every day on their phone, it is important to consider the disadvantages of mobile phones. This page covers advantages and disadvantages of Mobile Money. ➨Purchasing of online goods and services have become easier and provides more options based on The Benefits of Mobile Payments Customer Convenience. This is an example of one from numerous benefits of mobile banking. If you do not own a smart phone, the types of mobile banking you can do are usually limited. Businesses benefit against the risks associated with handling hard cash concerning: costs, safety and time. The flexibility that comes with taking your phone everywhere is unmatched. The e-wallet industry is said to be adding over 1 million customers each day after the announcement on November 8. training to those who are unfamiliar with the mobile money technology. Facebook Page, Address: The rise of digital platforms and the ease of access to e-commerce services has drastically improved. Mobile payments are the future of paying for your stuff, and that future is fast approaching. Generally, you conduct e-money or e-currency transactions over the Internet, or with smart cards that are linked to a bank account. ➨It avoids long travel to send/receive money or to pay bills by standing in long queues. Disadvantages of Paper Money: But we cannot overlook the disadvantages of money: (i) Paper money is of no value outside the country of issue. At the end of the day, you just need to be careful and alert. Mobile money has other services other than money transfer. • Affiliates management With mobile money, carrying your phone for transactional purposes is what matters. • Payment Switch Following are the drawbacks or disadvantages of Mobile Money: • Closed and Open Loop Card Scheme management Time is money and money is time. etc. • Electronic wallet service which allows users to store, send and receive money In turn, this has allowed mobile money users to … On the other hand, mobile money exists virtually with passwords for protection. 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