Mobile money transfer services such as M-Pesa and Equitel are very popular in Kenya. This is partly due to the ease of making payments using mobile money. Mobile payments are also more secure and widely accepted. The mobile transactions are completed in real-time. They are cheaper due to the lower Equitel and Mpesa rates. Kenyans mostly use mobile money to pay utility bills such as KPLC bill, Nairobi Water bills as well as digital TV.
It is also easier to pay statutory bills using mobile money. These include Kenya Revenue Authority (KRA), NHIF and NSSF payments. Paying school fees and rent using mobile money is also more secure and faster. Newer services such as PesaLink and Equitel have enabled inter-bank transfers.
While mobile platforms began mainly as a way to send money to other mobile phone users, the service has grown to include mobile banking. Almost all banks in Kenya now embrace mobile banking and are investing in products designed to facilitate carrying out of banking transactions through the mobile phone.
Other ways to use mobile payments include online shopping as well as buying airtime and data (internet). Mobile money is now often used to make online payments. This is because it has become easier to integrate a merchant website to the MPesa checkout API. The merchant receives transaction details whenever a payment is made to their Paybill or Till Number.
Mobile Payments – How Businesses are using Mobile Money and Paybill Numbers
The mobile payments revolution was predicted to end the traditional means of carrying out business transactions – cash and credit cards. This has not happened. Instead, mobile payments have grown to work hand-in-hand with older methods of payment. For example, it’s easy to withdraw cash from a mobile wallet using a bank’s ATM machine!
The rise of mobile payment Apps has accelerated the uptake of mobile money. Far from Africa, companies such as Yoyo Wallet are taking mobile payments to the next level.
Using mobile payment enables merchants to keep track of their customers – and reward them with loyalty points and discounts. Another App that has made mobile payments more secure and faster is Hike Messenger in India. This App has most of the features of the popular WhatsApp as well as incorporating a digital payments feature.
Another popular mobile payment App is Square Cash. This App enables people to send cash to their bank account and to others for free. The client is charged a small rate whenever they pay for goods and services using the App. Mobile payments began, and were first successful, in Africa. But mobile payments are increasingly becoming a main feature of global business transactions.