Mobile money can be described as a secured electronic account that allows individuals/businesses to receive, store and spend money using their mobile phone number. In Kenya the most used mobile money transaction service is the M-pesa.
In using mobile money, ones’ business is assured of a fast and safe banking. This is mainly because the business can receive, send and spend money instantly. The fact that mobile money accounts are always in-hand as they sit on users’ mobile phones, it can be used anywhere as long as there is signal strong enough from the service provider. Besides, mobile money is sent directly to specific user therefore eliminating use of middlemen and guaranteeing safety of the money.
With mobile money there is increased accountability and transparency in business. This is due to the fact that each and every transaction is recorded, thus errors can be traced, leading to decrease in cases of fraud and more profit to the business. In addition, funds held in a mobile money account are protected by local financial regulations. Moreover, mobile money can be considered to be cost effective in comparison to bank transfers. For instance, one requires ksh 105 to transfer ksh 80,000 to business partner using mobile money and will require ksh120 to transfer the same amount of money using bank account.
Mobile money is easily accessed by anyone who has a mobile phone can have a mobile money account. Its accessibility therefore renders it extremely useful in rural areas where there aren’t consistent and reliable banking services. When using mobile money transfer businesses can link their mobile account with their main bank hence able to transfer money received from clients to their main bank account without much hustle. This, not only reduces the risk of losing the money while physically depositing to the but also saves on time one would use going there.
In a nutshell, mobile money has proven to be an effective tool in running individual’s business and fraud prevention in organizations. It has also catered for the needs of unbanked individuals since a majority of Kenyans do have mobile phones in comparison to those with bank accounts. Therefore, it is paramount for all individuals’ businesses and organization to embrace the use of mobile money in their various transactions so as to save on cost and make payments easier.