3 Reasons to Use Mobile Money for Day-to-Day Transactions
Mobile money (also called mobile payment and mobile wallet) is not a type of money but a payment service that allows users to send and receive money via phone. There are over 270 mobile money services worldwide, with 15 in Africa itself- the largest being MTN mobile money! Now, What is MTN mobile money? Is it a type of mobile money? No. Why should one use these services in daily transactions? There are many reasons, the three biggest ones being the following reasons.
Low Transaction Costs
Mobile money allows users to send money to their family, friends, and business contacts (no matter where they live) with low transaction costs. In the case of banks, the transaction costs are enormous. It is a vast benefit, especially for Africa, because remittance is the largest source of foreign investment there. But the transaction costs are more while sending money to Africa than to other places. To reduce this unnecessary cost, the majority of African countries have adopted MTN mobile money and other such services. But What is MTN mobile money that these countries love so much? It is a mobile financial service provided by the MTN group in Africa.
Faster and Safer Banking
One of the biggest reasons why people use and should use mobile money in their daily transactions is because it offers faster and safer payments. The number of people who have a phone with the internet is higher than that of people with bank accounts. In many places, it takes some time to reach the bank that increases the theft risk as well as the travel expenses. With mobile money, one can spend, and receive, money along with making other payments right from their home. All they need is a phone with a steady internet connection. The users’ identity is verified before any transaction through OTPs and PINs to assure security. It makes it hard for fraudsters and hackers to cause any trouble.
Access to a Wider Range of Financial Services
Gone are those days when mobile payment service was all about spending and receiving money. It is more than that now. This service is multifaceted, that gives access to all sorts of other services. One can use these services while buying something for a safer and quicker payment. These goods can be anything- grocery, clothes, and electronics, to even jewelry. A user can also use mobile money for paying various bills (for TV, electricity, mobile, etc.), taxes, and insurance, all while chilling on the sofa while watching his/her favorite show.
