Essay: Mobile Phone Funds Transfer
It is worth acknowledging that paying debts and bills through mobile is very easy since it can be done anywhere and at any time so long as one has a mobile phone. Compared to the number of people in Africa who have bank accounts as opposed to mobile phones it is noted that the latter is more common. Carrying large amounts of money in cash in most parts of Africa since the security is not tight proves to be very risky. Mobile money transfer is the way to go if one wants to reduce the chances of losing his or her money.
The accounts offered by these mobile service providers are different from bank accounts in that they are not closed if they remain inactive for a long time. They do not need any minimum balances and no ledger fees charged for maintaining the account. The only charge applies when there is a transaction. These are the reasons behind why micro-businesses have incorporated the use of mobile phone funds transfer as a way of easing payment of their services. Of importance to note is the fact that most these micro-businesses are located in rural areas where most of the people do not have bank accounts. Since one does not have to have a bank account, it makes it easy for everyone to pay his or her bills through this method. On the other hand, these micro businesses do not have bank accounts since they are not registered as is required by the law and they are run by owners. (Anurag, Tyagi, & Raddi 2009)