disadvantages of mobile money

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

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