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Mobile Money in Africa is an Asset

About Mobile Money:

Mobile money is an online payment platform that will ensure the safe transfer of money between cellphone devices. This technology is installed in the sim card of the device and can be used from both regular and smartphone devices. It is not necessary to have a bank account. Users can easily send or receive money without being connected to the bank. This process is differing a bit from mobile banking.

Background of Mobile Money:

About billions of people there in the world have cell phones in their hands. Yet most of them do not have a proper bank account. Bank finds it difficult to install their services in remote areas mostly consisting of vulnerable section of the society. Especially because of, safety issues and high maintenance costs which cannot be fulfilled by those users. Here comes the role of mobile money in fulfilling their need for financial services starting from saving to other different complex factors. This helped in increasing the rate of mobile usage in developing countries, as well as solves the financial trouble. For example: In Africa, mobile phone usage has grown up to almost 80%. Whereas almost half of the population has access to proper financial services. Hence, mobile money companies are emerging in the market since 2007 with the advent of globalization. Even Money transfer software is a huge demand in Africa. ATL money transfer platform transfers money fast and easily with complete security.

Mobile Money is an Asset:

  • Provides Opportunity to Save:

Mobile money now provides all the financial services which would be provided by the bank. Hence, mobile money provides saving facilities. In Kenya, mobile money accounts for women used to allocate savings account with different labels for a different purpose. This really encouraged women to channelize their money according to their needs. This account also helped women to grow economically. The average household savings of people having mobile money accounts likely to save 15-21 percent which equals to US$2-3.7 per month.

  • Financial Recovery

Households now can respond better with money transfer service or mobile money. In case of any unexpected mishap, households depend more on mobile money as it is easy to transfer, even it is far away from home. One of the money transfer software which transfers money easily is ATL money transfer. This software also helps to transfer money swiftly from one country to other within a noticeably short period of time.

  • Transparency of Money

Mobile money records all the transactions, hence it maintains transparency of money flow. Transparency in earnings, transactions give a greater impact on tax collection. A proper disciplined and recorded money system reflects a healthy economy. ATL Money transfer software also provides real time tracking of the transaction.

  • Occupation Decision

The ability to transfer money fast and easily at a distance affects the decision making of the households. Now, people are gaining the courage to choose jobs in a different category other than agriculture. Mobile money also gave prominence to self-employment. Mobile money leads to migration and thus remittance is showing a steady improvement in the economy. Now people can trust mobile money and other money transfer software.

  • Effects on Poverty

Research from Kenya states, mobile money increased per capita household consumption and saving and hence poverty rate has reduced gradually. 2% of households in Kenya came out of poverty. Research shows that households led by women saw an improvement hence mobile money gave women financial independence.

  • Facilitate Government

The government also uses mobile money for Person to Government payments. It used as a tool for tax collection. But this still needs to be sternly explored. Thus, mobile money is an asset in Africa. It benefitted Africa in many aspects.

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