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