What is mobile banking?
Mobile Money Banking means you don’t need to go to the bank to get money. All you have to do is use the phone, send a text message with the password, and ask for money. Before long, a bank agent will come to you with the case. This type of bank is necessary because bank branches in rural Kenyan villages are not found in every city.
How does mobile money work?
No bank account is required. To make a deposit or receive the money they use, it is given in cash, and the mobile money app is installed. Agents work like ATMs, one can go to agents and give them money to deposit money into their mobile money account or transfer money from their account to get money.
In the early 2000s, mobile banking in Kenya in many countries bypassed the payment systems used in the United States. According to the survey, the rapid spread of mobile money payment systems has led to significant economic growth. Mobile money systems are ubiquitous in many parts of Africa, in Kenya it is 72% of a mobile money account and in Uganda, 43% of people have a mobile money account.
The current state of the mobile money market in Kenya:
• There are four mobile money providers in Kenya: Safaricom M-Pesa, Airtel Money, Orange Money, Essar you cash. But Kenya’s mobile money market is dominated by Safaricom’s M-Pesa.
• In just four years when mobile money was introduced, the country has increased the number of agencies offering mobile money services to 46,000, with just 1,072 agencies. The main drivers of this financial integration in Kenya are primarily M-Pesa and Safaricom Stock Bank. focuses on a very favorable regulatory regime, technological progress, and innovative business models, especially in the mobile phone sector. The mobile money market is about to soar.
• The government wants to increase the use of mobile money. They launched five ICT Council programs. Local digital content, digital inclusion, government applications, business process outsourcing, IT shared services.
The advantages of mobile money are as follows:
• It’s faster, easier and cheaper
• Paperwork is reduced
• A convenient option for beneficiaries
• Helps promote service delivery
• Becoming an agent is a profitable business
The challenges of mobile money are as follows:
• Platform integration
• Remote mobile network coverage
• Ensure agent liquidity
• Not all recipients have a national identity document
• Training for new users
• Receive signed receipts
• Using incorrect payments
The purpose of mobile money is primarily to promote its innovative use in the program and in companies. The sector also receives government support. With the launch of mobile money, Kenya creates the world’s most successful mobile payment service.