A Guide to Mobile Money Transfers

A Guide to Mobile Money Transfers
  • Opening Intro -

    Nearly 90 percent of the world's population are cell phone owners.

    Despite the fact that most of these are feature phones, they support a service called mobile money transfer.


As such, mobile money is a technique via which users can send money to others over a mobile network. For instance, mobile devices can be used to pay for bills rather than relying on credit cards, checks, and cash.

In this regard, it is fast, simple, trusted, and cheap. This article discusses modern trends in mobile money transfer.

Mobile Money Transfer and Peer-to-Peer Payment

Peer-to-peer (P2P) payment entails transferring funds from one individual to the other without the need for banks. For instance, Zopa.com provides peer-to-peer lending services where lenders and borrowers communicate to effectuate lending.

In this regard, such websites charge a smaller fee for these services than banks. However, the scarcity of P2P lending websites in some countries makes it an incremental task to expand business to these nations.

Therefore, mobile money transfer, a technology that supports all kinds of cellphones, is the best option to deliver P2P services to users all around the world.


There is a wide range of mobile applications such as GTbank Mobile Money and Bank of America that provide mobile money transfer services. Such services include:

>Paying for purchase
> Balance inquiry
> Peer-to-peer (P2P) mobile money transfer to subscribers and non-subscribers
> ATM withdrawal
> Cash deposit
> Airtime purchase

SMS-Based Transactions

Approximately ninety percent of the world’s population has access to mobile phones. However, only a small percentage of these are smartphones.

For instance, 64% of American adults are smartphone owners. For this reason, it implies that the rest of the population, 36%, are feature phone owners.

As such, it makes SMS-based transactions preferred to NFC payments that rely on cloud services.

In fact, the penetration of mobile payment such as Apple Pay, Google Wallet, and the recently introduced Samsung Pay is reserved for smartphone owners. However, the most prevalent form of mobile money transfer is based on SMS transactions.

How SMS-Based Transactions Work

A mobile device user sends a request for payment via an SMS to their mobile service provider. As such, the network provider charges them for the service which might include transferring payment from one account to another, paying bills, market analysis, or for entertainment content such as football updates, or horoscopes.

Advantages of Mobile Money Transfer

>The technology is fast because it involves sending an SMS or using NFC to make payment
> It is simple because it does not involve complicated processes
> Several people trust the technology because of its high level of security
> Lastly, it is cheaper than most technologies because of the reduced number of processes involved in making payment

Disadvantages of Mobile Money Transfer

>Using SMS-based transactions might fail due to the lack of network coverage
> Sending SMSs might slow down the transaction
> Lastly, high operational costs for the technology make it very expensive for some service providers to support mobile money transfer efficiently


Mobile money transfer is a revolution to making transactions. As such, the technology enables peer-to-peer money transfer across multiple mobile networks.

It is worth noting that the technology is universal because nearly 90 percent of the world’s population owns mobile devices.

Advantages include quick transactions simplicity, high levels of trust, and reduced cost of money transfer. Despite a couple of demerits, the technology is the next revolution in peer-to-peer lending!

*After reading this article, please, remember to share it with your friends on Twitter, Facebook, and Google+! They will be grateful you introduced them to the next way to send money from their mobile phones without making laborious transactions at long queues in banks or online.

*For more on this article, please, check out: http://www.gtbank.com/smart/mobilemoney/ and https://www.bankofamerica.com/online-banking/mobile-money-transfer.go


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