Mobile Money 101: Common FAQs For Customers

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While many people will use large payment processors or their private bank to transfer money to another party, today, there is another option. Mobile money applications make it possible to both send and receive money as needed, and all you need to have access to is your mobile device. If you are new to the idea of using your mobile phone to send or receive money, you may have a few questions about mobile money. Take a look at a few of the most common questions associated with mobile money.   

What is mobile money?

Mobile money is an umbrella term that is used to describe a digital payment network that allows people to send and receive funds using only their mobile phones. These digital applications are often available through third-party platforms as an easy way to send money. For example, a mobile money application may be accessible via social media messaging systems so you can send a payment to one of your friends. However, there are also simple apps that can be downloaded to a smartphone that allow you to use mobile money. 

Do you need a bank account to do mobile money transactions?

You may not need a bank account to do mobile money transactions, but you will have to set up some kind of funding source. When you elect to send funds, these funding sources can be used to send the money. Likewise, if someone sends you money using a mobile money application, you can choose to transfer the funds to an authorized bank or another account. 

How exactly does mobile money work?

Different mobile money platforms work in different ways. However, usually, you will: 

  1. Connect a funding source to the app
  2. Select a recipient you want to send money to 
  3. Send the funds to the recipient 

In order for a mobile money platform to work, the recipient must also have the same type of app. 

How is mobile money different than mobile banking?

Mobile banking apps are straightforward applications designed by banking institutions to give account holders access to their account information. Mobile money apps are not affiliated with a bank or financial institution. Instead, they are a standalone platform that works as a conduit for transferring funds from one customer to another. Some mobile banking apps actually partner with mobile money platforms so account users can send and receive money. 

Contact a local mobile money service, such as Cellulant Group, to learn more.