The mobile phone is the newest of many vehicles used to access banking or financial services. Credit cards are at present a well-established mechanism for electronic payments and ecommerce, and it has been possible to send money via money orders since long. However, the mobile phone is what makes mobile money services revolutionary.
Current mobile money deployments provide person-to-business payments, like purchasing air time top-up, or international person-to-person remittance services.
As per IFC – Havard study report Mobile phones provide individuals a convenient access point to financial services, permitting the user to initiate electronic transactions from anywhere and send them anywhere, includingother mobile phones. More significantly,the money used through mobile moneyservices is fungible so that someone can loan a friend lunch money, forexample, in a way that credit cardscannot possibly do. Because the store of value is maintained and potentiallyspent or re-sent anywhere, this describes mobile money (m-money), not simply an electronic transaction.
As retailers and individuals use and accept m-money,it will become more common and moreuseful in the marketplace and decreasethe need to cash-in or cash-out.Mobile money describes this broadcollection of financial services that areaccessed by mobile phones, enablingindividuals to spend, accept, store andtransfer electronic money. Mobile moneyservices will soon serve the breadth oftoday�s daily financial transactions,potentially making mobile phones theprimary access point for daily economictransactions and electronic money the primary means of settling those transaction
Baptista, Piya and Soren Heitmann. 2010. �Unleashing the Power ofConvergence to Advance Mobile Money Ecosystems.� Washington, DC:
IFCand the Harvard Kennedy SchoolPhotographs � GSM Association; Digicel; Zain Zap; MTN; Roshan;YellowPepper, O2 –