That Thing Called Mobile Money: Do You Get it?

How Does It Work?

Mobile Money works using basic SMS channel, USSD or SIM application.

• SMS – A customer can register, receive and transfer money by sending a command to a short code or a phone number that has been provided by the Mobile Money provider. E.g. Pay DSTV 15000 080312345678.
• USSD – This is the means by which we recharge our airtime or check balance. E.g. *122# Depending on what is decided by the Mobile Money operator in question. These commands will send a message and will ask us to respond to complete the transaction.
• SIM application – This is built on the SIM. It will allow you to go to the SIM menu and select the action you want to carry out. There will be an option to use Mobile Money Payment. If you have recently swapped your MTN SIM, you can click on MTN services and you will see it in the SIM menu.

There are those who provide application that can be used on Feature phones and Smartphones to carry out Mobile Money transactions. The Mobile Money account can be used on the mobile and desktop web in some instances. From what I have explained above, very basic phones and any phone that can do SMS can be used to carry out Mobile Money Transactions.

Is Mobile Money different from Mobile Banking?

Mobile Banking has been ongoing before the dispensation of the Mobile Money. Mobile banking is limited in that it is only available to those who have bank accounts. They download an application on a feature phone or smartphone, receive password and security code and are able to check balance, pay bills, transfer money and a host of other things from their bank account.

Mobile Banking isn’t new. The likes of eTransact have been offering this service in Nigeria. But extending the service to the unbanked is new. It is in this drive that cash-less society can be easily achieved.

I could go on and on and there will still be questions on what Mobile Money is. If you want to get started or try one of them out. I will list a few that I came across on the web and you can decide for yourself which one you will like to stick with. It is important to understand that they have just started and it is still evolving.

• Paga
• PocketMoni
• MTN Mobile Money
• Umo

and others. There are eleven of them

Mobile money supports Person to Person (P2P) transfers with immediate availability of funds for the beneficiary.

Mobile payments are meant for low value transactions where speed of completion is key and it encourages cash -lite economy. The system, which is technologically driven, allows customers to transfer and receive money through their mobile phones, make deposits, and pay utility bills, even without having a bank account.

Let me know it the comments if you are using any one yet. What is your experience like?