Mobile money is a wireless e-money for a user to execute financial transactions via a portable phone. Mobile phone-based virtual money transaction is either a business initiated by a person to person, or a business initiated by a person to business money transfer service. The process is very similar to using a debit or credit card to perform your financial transactions.
There are many options available for mobile money transactions. One of them is Mpesa, which was first launched in 2007 by Vodafone. Even today, the MPESA rates are very affordable.
What is MPESA & is it Good for Mobile Transaction?
M-Pesa is a mobile money transfer service, micro-financing, and payments service, launched by Vodafone group plc in 2007 and later by Safaricom, the second-largest mobile telecom company in Kenya, followed by Orange. It has since extended to Tanzania, Mozambique, Egypt, Morocco, DRC, South Africa, and Zimbabwe.
It is not a fad that Mpesa has swept across the world, but mobile phones have come a long way from their early days, thanks to mobile technology, which has made it possible to do transactions on the move and without leaving our home.
The second option is to use the traditional way of transferring funds. The person receiving the M-Pesa will have to send the M-Pesa through M-Pesa money transfer or “M-Pesa to M-Pesa connection,” which is a very safe way of transferring funds as it uses the same security measure used for transferring money between banks.
The third option is the easiest way to transfer mobile money, as there are no hassles involved. M-Pesa is sent directly to another mobile number via the M-Pesa money transfer connection. The only problem is that it is difficult to receive the funds if the recipient’s phone is switched off.
Mobile transfers do not involve any charges except for the Mpesa to Mpesa transfer fee, which is charged by the bank for every transaction. Banks are required to charge the fees to ensure that the transfer of funds from one account to another does not leave the account of the sender without being credited back to his account. Banks often charge an extra amount for each transaction that requires a retry.
Most of the banks offer mobile transfers at a certain fee, and this is one of the reasons why mobile transfers are so popular in the country. People love the convenience of sending money through mobiles.
So, whether you transfer money for business or personal use, M-Pesa is the best option to transfer your money from one bank to another without any hassles. The only thing that you need to keep in mind is to make sure that you make a regular transfer.
The process of mobile transfer services is pretty simple. If you want to make a direct transfer from one bank account to another, you have to fill out a form administered by the company or bank.
Advantages of Mobile Money Transactions
The money has no restrictions on it. You can send and receive money from anywhere. Second, the transactions are carried out at any time, without much delay.
In fact, mobile money has proven very useful in developing countries. With more people accessing the Internet, mobile phones have become a common tool to perform business transactions. As a result, the transactions have become cheaper than those carried out with money.
Business owners can transfer their funds to their customers with relative ease. For a company, sending money to its customers means that the company will not be affected financially if it faces financial problems. In some countries, a company can even use mobile money for its business operations.
Once the money has been transferred, it will be immediately deposited in your account. The only thing left for you to do is to make your next transaction. There are a few rules for making your next transaction. For instance, some providers allow you to withdraw the money that you have already transferred, while others prohibit you from doing so.
Well, this form of money transfer allows you to carry out your financial transactions with ease and comfort. Just imagine how much you would save if you could make all your financial transactions through your mobile. Just imagine having the ability to send and receive money to any part of the world at any given time without delay.
Furthermore, mobile money transactions are also helpful in saving time. Because you are always on the go and have cash with you wherever you go, you are able to conduct transactions with ease.
There are still a lot of points that you need to know before you can start using mobile money. One essential thing that you must know is that a prepaid mobile money account is needed. This kind of account is specifically made to cater to people who need mobile money transfers in order to buy goods. Other than this account, you also need a credit card or debit card which you can use for the same purpose.
Debit cards are considered as traditional cards, so the account holder needs to sign up with an email address. In other words, he must give his PIN number to the company. Whenever you need the cash, the company will send a code to the email address of the cardholder. The user then needs to enter this number and swipe his card to the reader.
This means that the company can instantly know how much cash is in his account. It is very convenient. In addition, these cards have a limited amount of limit, and the user is limited to a certain dollar amount for spending in each transaction.
Another thing that you need to know is that not every online service provider offers the service. Before choosing one, make sure to check if it is a reputable one.
There are also online companies that offer mobile money but charge high fees for transferring money. Make sure you get the right kind of service provider for transferring money to your account. One of the most popular mobile transaction services is mpesa.
Mobile transfers are available across many international borders. They are safe and secure as well. So, whether you transfer money to a close friend or business partner, make a personal or business transaction, you need not worry as Mpesa transfers are very safe and reliable.
You can transfer your money to anyone from anywhere in the world. In addition to the above mentioned benefits, you can also use them as a form of savings to invest in.
For the people who are not confident with banking institutions, these are the best options. So, you can save lots of money every month if you are not sure about the legitimacy of the banks.