Let’s learn about Mobile Money in this tutorial. Mobile money refers to money that is exchanged or transferred via a mobile phone and is linked to a mobile wallet that is linked to the SIM card in the mobile phone.
Mobile money is a form of mobile payment service offered by an MNO(Mobile Network Operator) or any other business entity.
The ability to link a bank account to a mobile wallet to execute financial transactions is providing flexibility and convenience to a growing number of bank customers. Mobile money can be used to transfer money person-to-person, allow someone to remotely deposit and withdraw mobile money to or from their bank account, pay for bills, or buy and sell anything using mobile money and their mobile wallet.
A mobile wallet is also known as an e-wallet or a digital wallet. A mobile wallet is an app on your mobile device that stores payment information from a bank account, debit card, or credit card, then allows the user to use the mobile device to make purchases online, shop outlets, small shop vendors with QR codes, etc.
Several different mobile wallets are compatible with specific devices. The major mobile wallets are as follows:
- Google Pay
- Apple Pay
- Samsung Pay, etc.
Some of the mobile wallet applications come integrated with the mobile device. There are also mobile wallets that we can download from mobile app stores.
There are many advantages of using mobile wallets for mobile payments. Some of the advantages of mobile wallets are as follows:
- Multiple payment sources
- Regular payments
The main benefit of a mobile wallet is convenience. You can store all your bank and debit/credit card information in the mobile wallet. You don’t have to carry the physical cards along with you for shopping or for making payments.
Mobile wallet transactions are secure. Mobile wallet transactions are protected by requiring either your mobile device passcode, face id, fingerprint, etc. All the payment information will be encrypted to the server and on the device.
We can add multiple credit/debit cards and bank accounts to the mobile wallet. We can choose the bank or the card during the wallet payment.