By tradition, sending money abroad to your loved ones or for your business meant going to the bank to set up an account and request for a wire transfer. However, the rise of FinTech (Financial Technology) changed the way money is sent for a more inclusive, convenient, cheaper, and faster way which can all be done by using a smartphone. A great solution to serve the underbanked population worldwide.
Thanks to the high penetration of smartphones and high demand in contactless payments that according to GSMA, there are already 1.35 billion registered mobile money accounts globally in 2021 and more than 1.5 million P2P (Person-to-person) transactions were made every hour on average.
But first, what is Mobile Money/ Mobile wallet?
It’s a technology that allows you to make financial transactions such as remittances and payments through your computer, smartphones, tablets etc.
As a mobile wallet owner, you can store funds, send, and receive money even without a bank account. Popular mobile wallet vendors include PayPal, Alipay, WeChat Pay, Apple Pay, and Google Pay but as of 2021 there are 316 mobile money deployments that are live in 98 countries.
How does it work?
Mobile wallets are linked to your mobile phone number which can be accessed through an app. All your payment information is stored securely to your electronic account. It is literally having your wallet on your phone, so you do not need to bring a big fat wallet with you wherever you go.
What are the benefits of having a mobile wallet?
Inclusivity
Billions of people globally do not have access to bank accounts which meant they could not access financial services that they need. Like in Africa, where it is considered as one of the most unbanked regions in the world and with the increase in mobile penetration there is a rapid growth of adoption for mobile money where there are 296 million registered accounts in East Africa just in 2021 based on Statista. In Rwanda, the Central Bank’s introduction of multiple policy changes prompted an astounding 700 percent increase in in the weekly value of funds spent digitally at merchants, a 450 percent increase in P2P payments and 200 percent increase in the number of active users. While in Southeast Asia, more than 6 in 10 people are unbanked and as a result, it is considered as the world’s fastest growing mobile wallet market per Bloomberg. By providing an accessible and secure way to do financial services, both economies and individuals can prosper especially those who are having a hard time opening a bank account in the rural population.
Convenience
By having a digital wallet, you can access it anywhere and anytime you want 24/7 as long as you have a phone signal. You can leave your cash, debit and credit cards at home and still, you can buy stuff both online and in stores, pay your bills, transfer funds, check your account, and review all your transactions to keep track of your spending.
Cheaper
Unlike traditional bank accounts, you do not need to have a maintaining balance on your mobile wallet. It is also cheaper to do money transfer and has a higher exchange rate. So, you can enjoy the perks while saving more using your mobile wallet.
Secure
Most of the mobile money accounts are protected by local financial regulations and with the continuous improvement in technology, these services are becoming secure. To use its services, they usually require a two-factor authentication such as your face ID, PIN, or your fingerprint.
Speed
In terms of money transfer, you can send or receive funds in a matter of seconds depending on the type of transaction. While for payments it is usually fast since you only need to tap your device on the reader. It is faster to do it than getting your wallet out of your pocket or bag.
What to check in doing online money transfer using your mobile wallet:
Safety
Validate if it is regulated by a government body to ensure that your money is safe and protected when you transfer your funds.
Fees and Rates
Money transfer services may charge you with a fixed rate while others take a percentage of the total amount to be transferred. There is also a conversion rate especially when you are sending from one denominator to another. Make sure to check these charges before using their services to find out which one is the most cost effective for you.
Sending and Receiving options
Ensure that they can use your mobile wallet as the source of funds for the transfer. Receiving options can be cash pick-up, cash delivery, straight to the receiver’s bank account or mobile wallet depending on the location. Check whichever is more convenient for you.
Customer Support
When your hard-earned money is involved, it is important that they offer a customer support that you can access 24/7 to check and verify your transfer.
Transfer Amount and Speed
Some money transfer providers have a larger limit than others so depending on the amount you wish to transfer you should check the maximum amount you can do in one transaction especially if its for your business transfers. Speed should also be taken into consideration whether you can receive it within a day or in 7 days.
Send money today with Entre Biz! Which offers multi-currency wallet for your needs without the need of a traditional bank account and offers a safe and reliable way to send funds to your loved ones abroad. Download the Entre Biz app today.
Leave a reply