African countries like Kenya have astounded the world with its futuristic development in the finance sector. In the same wake, their use of mobile money has proved a game-changer. According to a report in The Herald, Ecocash has increased daily and monthly transaction limits in March 2020, which is more likely to encourage people to use mobile-based financial operations. Also, Ecocash rates of transactions are dropped significantly to accelerate the adaptation of technology amongst the people of Kenya and other African countries.
What is mobile money? And why it is popular in African Countries.
Mobile money is an app-based technology that allows people to use their smartphones to make transactions and perform a crucial financial task using technology.
African countries like Kenya have leapfrogged traditional banking system by using mobile phones at stores and other places. This is surprising, as African countries aren’t popularly known to adopt western technology and app-based solutions. So, is lowered Ecocash rates of the transaction the only reason for this adaptation?
That and also the lacking trust between African people and the banking system (mostly due to their inaccessibility). Plus, companies like Ecocash assure them of the security of the transaction. This brings us to the top 3 reasons why mobile money is popular.
Top 3 Reasons why mobile money is so popular
Security Of The Transaction
High-end technology such as Blockchain, AI, ML makes it easy for companies to acquire more users for their mobile money applications. They make tracking down easy, plus gives you data to make an informed decision. Also, users’ other technologies are there which provides them real-time updates on their transactions. In this way, mobile money applications have bridged the gap between people and the banking system.
Mobile money applications have disrupted the market and today they are offering their services to accept and pay money at the nearest grocery shop to the big eCommerce websites. This accessibility, not just reduces the dependency of people on cold hard cash, but also improves their shopping experience.
Several other online payment modes can be a bigger investment for third world countries. Regular maintenance and requirement of POS networks, also even setting up an ATM is something that requires capital. But outsourcing it to third-party mobile applications makes it simple and augmented user-experience.