Digital innovation in the form of mobile wallets has become the key to unlock and hence increasing the strategic outcomes for the business and the community. These Mobile Wallets have become part of our day to day life. In fact, during the time of pandemic situation Mobile money solutions are playing a prominent role so as to avoid cash transactions.
Mobile wallets are improving financial inclusion and gaining popularity too as they are providing much-appreciated convenience to complete payments and to send, receive, and store money via smartphones.
Mobile money has become that platform that is transforming the entire economies, as it is adopted across every sector like commerce, health care, agriculture, and other sectors. To date at least 110 money mobile systems have been deployed, with more than 40 million users. This show cast that Mobile wallets boost financial inclusion in the business as well as the economy.
MOBILE MONEY APPLICATION
Mobile money applications are like normal mobile applications on our mobile phone which are being used to store money in digital. An individual can use an inexpensive mobile to send value to someone else. To change this digital value into cash, a user simply visits the Bank (Retail Agents) who verifies the user’s identity and makes the switch. In this way, money can reach anywhere to anyone all wound the globe via a simple text message.
So, the only requisite of Mobile money Application is to possess a Mobile phone. This Mobile money application plays a prominent role for the people who have come to cities in search of work and left their families behind in the village. They can easily transfer money to their family with the help of Mobile money instead of sending it through any other medium.
MOBILE WALLETS BOOST FINANCIAL INCLUSION
The benefits of mobile wallet payment systems are very clear as these mobile money systems are truly fulfilling the growth potential of the economy. These Mobile wallets are special contactless technologies that are available that allow phones to transfer money to contactless cash registers.
Mobile wallet is more than just technology—it needs a cash-in, cash-out infrastructure, usually accomplished through a network of “cash merchants” (or “agents”), who receive a small commission for turning cash into electronic value (and vice versa). This whole process leads to boost financial inclusion in the economy.
Digital wallets as we all know are quite similar to our regular bank accounts with the ease of operating them at our convenience. Today everyone in this world uses mobile money and mobile wallet services across the world as they find it simple and easy to scan the codes and do the payments and receive the payments.
THE FINANCIAL INCLUSION
As we know that in many developing countries including India more than 20% of the population is being considered as poor. But it is a matter of concern that Poverty is much more than just a lack of money by an individual.
In fact, it also means a lack of access to all other means through which the poor could improve their standard of living. One of the most common barriers to these poor people is they are being excluded from the former financial system being existing in India.
Still, there are many people existing in India who don’t possess an account with any of the financial institutions. This all came as a challenge for the country to find out an innovative model to extend financial services to poor and Thus the innovative models of mobile money came as the solution.
As the Mobile wallet is being used widely and is considered as one of the effective ways to provide access to finance to millions of people whoa re being categorized as poorer in the country. Hence the Mobile money solution has come out as a microfinance solution for everyone through which they can increasing productivity by lowering the cost of transactions, improving security, generating new employment opportunities, and many more.
MOBILE MONEY: IMPACTS AND BENEFITS
Mobile wallets boost Financial inclusion but what are the conditions in which mobile money can extend its services to the public is of great importance. the immense support from the government, non-governmental organization, and authorities makes things quite easier for mobile wallet service providers and hence ensures that their impact is widespread resulting in maximum financial inclusion which would altogether lead to poverty reduction, increased productivity, and many more.
INHERENT BENEFITS OF MOBILE MONEY
Mobile money is trending and successful not only because it is considerably cheaper than other alternatives to cash but it is also safer than other alternatives, including cash. One of the most significant benefits of Mobile money is its privacy and autonomy due to which it has become the best alternative these days.
Research says that not only in India but all around the world women use to have personal savings without seeking permission from their husbands and for them, Mobile wallets have come as a boon. As the cash would not be visible in fact would be present in their mobile wallet. The speed and liquidity of mobile money are also some of the benefits due to which it is being used widely these days.
BENEFIT FOR SELLERS
Mobile money is improving Financial inclusion not only for its customers who perform the payment but it has also prove commercially significant for all service providers.
Even though the transaction fees that mobile money providers charge are individually quite small, in total, but still it has become the choice for many businesses,. Some Businesses are deliberately using mobile money to enhance their traditional offerings and attract the public by letting them know they are as per the new trend pertaining to the market.
Many of the features have made Mobile Money so promising. Whether it is its impact, its varied uses or the novelty of its role has made Mobile wallet the first choice of every individual.
The government, industries are one of the main reasons for its wide usage and thus have to transform the country its economy into a cashless digital economy. As these days Mobile is the one of that powerful medium which is being used not only to connect with our near and dear ones but now it has become our wallet too thus boosting the financial inclusion in the country.
Whether it is due to pandemic people have shifted towards it or due to its usage or importance but the true Fact is mobile money has become the part of every individual as compared to other banking means.