By Renee D. for SafeCashTransfer.com
The number of people using mobile devices to handle financial business is staggering. Looking at checking account balances, moving money from savings to checking, and completing money transfers on a local, national, or international level have all become quite common. Thanks to technological advancements, almost anything is possible with a mobile device and good service provider.
With this being a fast growing trend, we wanted to take the opportunity to provide a few interesting facts that people may not be aware of. After reading this, anyone who has not yet moved to the next level of handling financial issues via phone might reconsider this as a viable option. Without doubt, the benefits of using a phone for transfers are quite impressive. These benefits include convenience, privacy, ease to use, fast service, and affordability.
Understanding the Basics
Cell phones have become such an important part of life that almost everyone owns at least one. According to the International Telecommunications Union, more than 5.3 billion mobile phone subscriptions exist but even more shocking is that this number is expected to increase significantly over the next five to ten years. Although communication is the primary reason people use mobile phones, technology has made it possible to accomplish many things never before thought possible.
Next to communication, mobile money transfers and remittances are also highly valued. Rather than process a payment through a bank or credit union, transfers can be made to an eCommerce merchant almost anywhere in the world with a credit or debit card, cell phone, and reputable transfer services company.
If wanted, money transfers could also be used to pay creditors, book travel arrangements, and much more. In addition to money being transferred for business purposes, this is a great service for individuals, who need to send money to family members or friends. Along with sending money, transfer services also make it possible for money to be received. Without questions, this already important service has a bright future.
Because this is an ever-changing financial service and due to ongoing advancements in mobile device technology, new information will always be available to share. However, we wanted to provide some interesting facts pertaining to mobile money transfers as they relate today.
o Although this type of service provides people with a convenient way to send money, it has also been proven beneficial to both financial and communication sectors in a variety of ways. For instances, money transfers completed using a cell phone along with “branchless banking” services help decrease the cost of remittances, increase savings potential, and generate an entirely new revenue stream for financial institutions but also telecommunication companies.
o Social and cultural practices play a key role in profitability potential associated with money transfers via cell phone
o Of all foreign countries, Kenya has achieved the greatest success, having secured over seven million subscribers since the rollout of Safaricom in 2007.
o In most cases, the offer of money transfer services via phone is intended to retain existing customers rather than attract new ones. Because no bank account is required for this particular service, the goal of financial institutions is to promote additional financial services to current customers. Companies through which mobile money transfers are completed hope to keep customers who use this and other financial services opposed to losing them to the competition.
o The most recent world financial crisis made officials aware that regulations were critical for protecting consumers but that there was also the need to be flexible enough for innovation and technology to continue pushing forward
o Although efficiency is a primary concern of companies through which money transfers are processed, privacy and security remain top concerns. Because of this, significant money and time have been invested into developing and implementing technology to prevent both cybercrime and money laundering risks.
o Even though there are fees associated with transferring money, these are significantly lower than fees associated with other payment methods
o Amazon and eBay account for the majority of purchases made using a cell phone for payment
o One specific area that experts predict will experience some of the fastest growth over the next several years is travel. Some people have cut back on travel due to fear of terroristic acts but this industry has started to see tremendous growth.
o By the end of 2012, approximately 215 million mobile device users will spend some $175 billion worldwide, more than a 60% increase over numbers from the prior year. However, within the next five years, these numbers are expected to climb to 448 million payment users and $617 billion, respectively.
o The somewhat low NFC transactions will not see growth for several years and SMS will remain the driving force behind mobile money transfers in developing countries. However, for North American and European countries, most money transfers will be made through Mobile Web.
o Digital type merchandise is purchased most often using credit and debit cards for mobile money transfers