There are two terms commonly used: mobile money and mobile banking. Sometimes people get confused about the two terms, thinking they are the same thing.
These days, we manage most of our lives from our smartphones, even our financial lives. There are many mobile financial services that we can access, but what’s the difference between mobile money or mobile banking?
Mobile banking and mobile money are separate terms that allow for cashless transactions in a modernized manner. Both Mobile money and mobile banking are maintained by the financial institution providing the service.
Mobile Banking Vs. Mobile Money
Mobile money is different from Mobile banking because it allows only person-to-person (P2P) payments while Mobile banking allows all types of transactions and other services.
With the use of a mobile phone or internet connection, one can send, receive, and store money through Mobile money. Mobile banking, on the other hand, is a service offered by banks to their customers for all types of transactions. It can be used with a smartphone or tablet as well as an internet connection.
Mobile money, also known as cashless transactions, is a way to pay bills and buy goods online using a smartphone and an Internet connection.
Mobile banking allows for cashless transactions using a smartphone and an internet connection. However, it offers more services to users. All banking services are available at the user’s fingertips without having to visit the bank or ATM.
What’s Mobile Money?
Mobile money, a digital wallet service that runs on a smartphone’s app, works only when it is connected to the internet. It allows you to store and manage money in an account that is linked to your phone number.
Mobile money doesn’t require a bank account. This is the most important point to remember about mobile money. Mobile money can be used without the need for a bank account. Mobile banking is easier than traditional banking, although there are still fees and terms.
Mobile money allows users to pay in cash and make payments using mobile money. Mobile money allows users to store, buy items, pay bills, and receive money. It allows for Person to Person (P2P) payments. It is safe and easy to make P2P payments.
It is a modern technology that has been used all over the globe. Latin America, Africa, Asia, and Africa are seeing increasing interest in it. It’s fast, simple to use, secure, and can be used even in remote areas without a cell phone signal.
Mobile money has some advantages:
Mobile money is safe: It is a secure transaction between two people and no third parties are involved.
Fast: Mobile money works quickly through the internet. The money can be sent and received immediately even in remote areas.
Low cost: Mobile money is affordable because it doesn’t charge any taxes when a payment is made.
What’s Mobile Banking?
Mobile banking is a digital service that runs via an app managed by the bank. Customers can use mobile banking to perform all types of transactions such as finding ATMs, paying loans, and many other services.
Many banks offer banking apps for mobile devices. These apps allow you to view and manage your account via your mobile device. You can search your app store for the top high-street banks such as HSBC and Lloyds.
The bank offers mobile banking services that allow users to transact from anywhere remotely via a smartphone or tablet with internet access. This makes it easier for the user to work, as one doesn’t have to wait in long queues at the bank for transactions or other tasks.
The customer can use a smartphone camera to take a mobile cheque deposit and manage it through the mobile banking app. Mobile banking allows customers to generate an e-passbook and change the number that is linked to their account. It’s like having your bank in your hands.
Mobile phones offer many advantages:
Accessibility: It’s easy to find it from any location and at any time. You can check your account via a mobile banking app, which is available 24 hours a day and 7 days a week.
Convenience: This is a great way to save time. Mobile cheque deposit is a feature that many mobile banking apps offer. This allows users to deposit a cheque from anywhere, whether it’s at home, work, or even outside. You don’t have to wait in long lines anymore.
Good security: Mobile banking apps provide a multi-factor authentication that provides good security. However, they must not share their codes with anyone. Many security features are available on some phones and apps, such as scanning fingerprints and scanning faces. You can lock your phone or app with these security features
Difference between Mobile Money and Mobile Banking
- Mobile money allows users to pay, receive, and store money. Mobile banking allows for all types of transactions with other banks.
- Mobile money is a person-to-person payment service, whereas mobile banking is a service that does all types of transactions.
- Mobile money does not require a bank account but a phone number. Mobile banking, however, requires that the bank account be available.
- The app’s developers manage mobile money, while the bank manages mobile banking.
- Mobile money functions as a digital wallet or mobile wallet, but Mobile banking is the user’s net banking.
Conclusion
Both mobile money and mobile banking offer digital money transaction services. Mobile money and mobile banking take less time and make it easier for the user. Mobile banking and Mobile money have many benefits, but there are also many drawbacks.
It might be difficult for a user who is not familiar with the app’s functions to use it. The app cannot be used by everyone. Both mobile money and mobile banking are huge steps in the modernization of the financial sector and towards cashless.