We have come a long way from queuing in banks to depositing and withdrawing money to simply managing all of our transactions through cell phones. Platforms like PayPal, Payoneer and others have been used for years to transfer money from one end of the world to the other. As technology advances, smartphones have become the preferred medium for processing money-related transactions. But to what extent are these developments beneficial for businesses in today’s market? Here are some of the ways mobile money can transform businesses.
Well-documented mobile money creations like Kenya’s Mpesa have really simplified the way business is done. It has reached a point where buyers and sellers don’t even handle cash anymore; everything is done through the service, thanks to many transactional options specific to specific types of companies. This reduced the risk of having to walk around with ringing money or getting scammed as it leaves a trail of money that can be used to track people down since every transaction is linked to a phone number personal laptop. Doing business is now easier and more secure than before.
When you combine mobile money and online shopping, you can create a situation where someone doesn’t even have to travel to where they are to get what they want. You simply transfer the money to the company and they ship the product directly to you. Increased convenience like this makes it easier for people to manage other important things in their life.
When transactions are linked to mobile phones, it means more people will participate in the economy. It is estimated that over 1.7 billion adults are unbanked globally, which is due to lack of access to banks and the huge bureaucracy involved just to open an account. However, almost anyone can access a phone of any type; it doesn’t even have to be a smartphone to buy and sell. Unlike banks which need buildings to function, mobile money depends on connectivity, which has opened up rural areas to more business opportunities that have dramatically transformed people’s lives.
Mobile money is not 100% secure, but it is much better than regular banking because it involves very little solid money handling. Most transactions are done via cell phones, making it easier for people to move around in peace without having to carry huge wads of cash in their pockets, which usually cataracts thugs and thieves of all. the corners.
Another important feature to note is that access to money is protected by pins which are only known to the user. There are several layers of authentication that must be completed before access is granted; this includes providing the correct PIN code, proof of your identity by text verification, and your personal identity card. Not all of these are foolproof, but they make fraud more difficult.
Gone are the days when people had to wait three days for bank checks to mature before they could access their money, a period that made it easier for fraudsters to perform all kinds of stunts. With mobile money, business can be done in seconds. Banks are also adopting the technology, calling mobile banking, which enables the seamless transfer of money from a mobile phone number to the bank at very favorable rates in real time.
People can buy and sell whatever they want at any time as long as they have money in their cell phone or in the bank. It has even made dealing with medical emergencies a lot easier, as the money can be paid off immediately, before the patient even reaches the emergency room. The fast transfer of funds also makes it easier for businesses to update their inventory on the go compared to the past when they had to wait for money to reflect in their bank accounts first.
Open businesses to loans
Once banks realized that people were turning to mobile money for their needs, they quickly changed their names and created ways to link mobile money and banking; this link helped businesses get good credit scores which helped them get good loans of the bank that they can use to expand their operations, thus growing much faster. For most of these loans, no type of collateral is required; the bank just needs to access the transaction history and use that information to gauge how much it can give you based on your sales volumes. Removing barriers to lending has been of great benefit to businesses.
He bridged the gender gap
Until 50 years ago, it was almost impossible in many parts of the world for women to open bank accounts without the company of a male counterpart, be it their husband or father. This limited the avenues they could use to get money to start businesses that made them independent. But with mobile money, that is now a thing of the past. The gap between men and women in business has been reduced considerably thanks to free access granted to all women who may be interested in starting their own business.
With financial independence, many women have seen their lives transformed for the better, which has had positive ramifications for the economy as it has been discovered that women are far more skilled in the business than men. , and the more they get involved, the better. it is for growth and prosperity.
With new technologies such as Bitcoin gaining in importance, it is only a matter of time before the entire world goes cashless, embracing mobile money and bitcoin for all business operations. This will bring more security and flexibility, which in turn will make it easier for more people to do business and improve their lives. It will be enough to put in place better security measures to ensure that no one loses their hard-earned money.