October 26, 2020
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Finance

Mobile Money is Taking Africa by Storm- Here’s Why

M-Pesa is known for its simplified concept. One can easily deposit into them without much hassle. Their agents are present in the entire country. One can easily transfer money through the mobile phone, pay their bills, and even purchase groceries, all via mobile handsets from their convenient place. Now, coming to the M-Pesa charges, they are affixed judicially. While all the M-Pesa deposits are completely free.

Low M-Pesa charges for transferring funds make it a preferable choice. Even the person who did not have a bank account made full use of it. M-Pesa allows its entire customer to use their mobile phone as their bank account and debit card. Entire account-related information gets stored in the phone SIM card, which can be accessed by entering the PIN code.

Why was M-Pesa designed?

M-Pesa was designed for the customers belonging to the bottom of the pyramid. However, interestingly it got a good response from the middle to high-class society people. They rather made good use of it to pay the salary amount to their employees who did not have bank accounts and to send money to needy relatives. It is even known as the top way to be paid online.

Mobile phone transfer has outstripped the traditional mode of transferring money. In the year 2009, Western Union came up in a partnership with the Safaricom, which made it possible to directly send money from the UK to Kenya. This helped in expanding the services to 45countries. People were quite satisfied with their service. The growth and positive response from the market were quite visible. It helped to earn good revenue to the company. The service was no more limited to Kenya. Similar services were launched in various countries. 

The mobile banking product tester in Uganda, Ola Morawczynski of Apple said that many other similar service providers failed to replicate M-Pesa’s success. It has been remarked that mobile banking helps create some real opportunities for the country’s economic development.

The mobile money network works positively. It even easily penetrates in the rural area compared to other technology. Even in the current pandemic situation, Africans are urged to switch into digital payment mode. This helps to reduce the coronavirus risks, which is associated with the cash exchange. Even the mobile money providers present across Africa have waived or reduced various charges and transaction fees to promote digital payment mode.