Mobile money is essentially an electronic wallet service, available in many countries. This service allows users to send and receive money from their mobile phones. As per a report from the World Bank, more than 1.7 billion adults do not have a bank account. But most of them would have a basic or a smart mobile phone, making it easier for them to have a mobile wallet account.
Mobile money works on any type of phone and uses the mobile number as an account number. Mobile money services are usually run by third-party mobile phone networks or licensed independent payment service providers called mobile money operators. Globally accepted communications protocols allow mobile phones to communicate with each other. Mobile phones transmit commands to wireless providers to add money to the user’s bill by embedding certain keywords into text messages sent to specific numbers. When the bill gets paid, the phone company transfers the designated amount to the recipient. Mobile payments have a big impact in areas where other payment systems and options are scarce.
As per CISION PR Newswire, the global payment market is estimated to be USD 1.48 trillion and is expected to grow to over USD 12 trillion by 2027
The benefits of mobile money transfer app are:-
•Secure - Mobile payments are a safe and secure way to transfer money. They are protected by local financial regulations such as the Consumer Financial Protection Bureau (CFPB) in the USA or the Department for International Development (DFID) in Britain. All transactions are secured by a Private Identification Number (PIN) and every transaction is recorded in the Mobile Money app.
•Pervasive - Mobile payments have evolved over time and now cover transactions ranging from payments of utility bills, fees, taxes & even international money transfers.
•Accessible - One of the advantages of mobile money transfer apps is their accessibility. Money transfers through a mobile money app can be transacted and completed from any part of the world at any time.
•Time-saving - Mobile banking offers convenience as money can be transferred at any time and from any location. Mobile money transfers can be done simply by picking up the phone and entering the transaction details in it. It does away with the need for a person to visit a bank in person or the need to use a computer for transfers. These mobile money transfers can be done even during bank holidays.
•Saves money - Service costs are usually levied on conventional methods of money transfers. Mobile money transfers levy fewer charges or no charges depending on the amount and location.
There are many options available to users today. More than a hundred million people across the globe have a PayPal account. PayPal allows users to transfer money via text domestically and also overseas without any charges. Charges may be levied if a debit or credit card is used to send the cash.
Many other companies have entered this market and offer a variety of money transfer options. Venmo is one of the popular choices and does not charge fees on certain transactions and setups, but its usage is restricted geographically.
Some banks like Wilmington and Trust Bank of America have transformed traditional services to be compatible with mobile money transfers and usage. But, the advent of mobile e-wallets is groundbreaking with mobile apps like Apple Pay, Google Pay, Samsung Pay & others.
Many companies like Mobile Giving Foundation provide electronic donation services to charitable organizations like the Red Cross, making fundraising as easy as sending a simple text. Phone carriers aggregate the donations from cell phone carriers and forward the same to the Red Cross.
Some advanced features of an e-wallet can be:-
•QR codes - In the fast world of mobile money transfers QR codes and scanners make all the difference. These options support quick scan options for fast transfer in a secure way.
•Push notifications - Push notifications offer information at a user’s fingertip to give real-time updates.
•Chatbot - Chatbots provide immediate assistance without the need for a user to call a helpline.
•Two-way authentication - This provides extra safeguards and security while transferring money. Two-factor authentication (2FA) is widely used and secures the transaction by sending a One Time Password (OTP) to the sending party.
Using mobile phones to transfer funds and make payments has become a common, easy & efficient system in the past few years. The Covid-19 pandemic made this a preferred way of paying and receiving money. Mobile money has transformed the lives of billions of people across the globe. Companies offering mobile payment options must focus on deploying all possible measures to safeguard data and maintain confidentiality, privacy & integrity. To do this organizations must hire the services of an online payment transfer app development company that understands the complexity of a money mobile transfer app development.