Back in the day, if you wanted to transfer money from one person to another, you used promissory notes, or Western Union’s bills of exchange. Nowadays, you can simply touch your phone and move cash.
Thanks to new peer-to-peer mobile applications, you do not have to visit a physical location to transfer money. If you are wondering how to go about money transfers, this post is for you! Read on to learn everything you should know.
How Does Mobile Money Work?
Mobile money keeps funds in secure electronic accounts linked to a phone number. Sometimes, the wallet number will match the phone number, but it can sometimes be different. Before sending money to a mobile money wallet, counter-check with your recipient to establish the correct number.
What Can the Recipient Do with Mobile Money?
Numerous mobile money services let users buy items online or in shops, top-up mobile airtime, and pay bills, and school fees. Cash withdrawals are also possible at designated agents.
To send money to another individual or pay a bill, the user chooses the relevant service from their mobile’s money menu. Paying with mobile money is more like sending a text message- it is fast and easy.
Is Mobile Money Transfer Safe?
Yes, mobile money transfers are as secure as transferring funds through the banking system. The same local financial rules that apply to banks and other financial organizations also apply to mobile money providers.
A security code or PIN protects all mobile money transactions. All transaction details are stored securely and safely, as with bank accounts. Plus, the mobile phone network encrypts every transaction.
Having a PIN or personal screen lock on your phone is also a good idea to boost security. You would not leave your open wallet lying around where it might be easily stolen if it contained money, would you?
Where Can You Get a Mobile Money Account?
Mobile money transfer is available in many countries, especially those with limited access to bank accounts.
Many mobile money services are provided by local mobile telecom providers with licenses to provide electronic payment services. Banks and other businesses also provide some mobile money services.
To register, you should visit your local mobile money operator and carry a form of identification, be it a government ID, driver’s license, or valid passport.
For more information on how to register for mobile money, check out the website of your local mobile money provider.
Is Using Mobile Money Transfer Cheaper than Bank Transfer?
Yes! Simply owning and maintaining a bank account incurs charges. These include account opening charges, monthly maintenance charges, overdraft charges, course transaction charges, and ATM charges. But it all varies according to the type of account and the bank itself.
Even for individuals who frequently transfer money abroad, the process can be challenging. Most people still get confused about how exchange rates work! Sending money to a bank account will always be costly for multiple reasons, but the primary one is that they are inefficient at handling international transactions.
Bottom Line
It is a secure approach that has become more secure than carrying around an actual credit card, as most phones now need facial or fingerprint verification for access. It is a safe and secure way, and because most smartphones require fingerprint or facial verification for access, it is more secure than carrying an actual credit card.
