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