The various mobile money transfer applications work differently, and many operate as an extended offering in the retail or financial sector.
Adapt IT | Telecoms offers potential mobile money providers like telecoms wishing to extend their product offerings, a viable and independent solution, and one which boasts increased security and convenience to users.
In this article, we explore the top 5 trends to look out for in 2019 and show how Adapt IT | Telecoms already foresaw and catered for those trends.
Top 5 trends in 2019
#1: Money transfers = top payment method
By 2022, mobile money transfers will be the second most popular payment method worldwide, after debit cards.
Mobile money transfers are already dominating certain areas of the world in developing countries, like Kenya. This is because many of the people living in those locations do not have bank accounts.
Adapt IT foresaw the need for mobile money transfer providers, specifically in developing countries, and created a product that not only allowed banking for the unbanked, but additional value-add modules catered to an audience needing easier to use services provided via unconventional methods.
#2: Security concerns remain the top barrier to mobile money
According to the 2018 research from Simon-Kucher & Partners, 40% of US consumers who don’t use mobile money transfers say that security concerns are the top reason.
However, mobile money transfers are one of the safest methods of payment after COD, so long as the provider is trusted.
Adapt IT | Telecoms mobile money solutions use USSD, which enhances security and also offer advanced security modules. Adapt IT | Telecoms is also a well-known and respected telecommunications solutions technology producer.
#3: 70% of digital commerce will be via mobile transfers
According to McKinsey, in 2017 mobile commerce pushed 48% of digital commerce sales globally, and is expected to increase to 70% by 2022.
Mobile money transfers are secure, fast and convenient. It’s obvious that the younger generation would be quicker to embrace new methods of purchasing, and they are the key drivers behind mobile money transfers.
According to PewTrustOrg, millennials are the key drivers behind most mobile money transfers.
Although the graph shows that millennials do not lead the pack in paying by SMS, in developing countries this would be a helpful way to transact because SMS does not require data.
It’s what makes Adapt IT | Telecoms USSD-based mobile money solutions a good option for developing countries.
#4: IoT will add convenience
IoT will allow for more connectivity between services, making mobile money transfers even more convenient.
Adapt IT | Telecoms has already found ways to incorporate additional convenience with all the add-on services that are included in their mobile money solutions. For example, not only is it easy and secure to conduct financial transactions, but the technology allows for the unbanked to use it too, and users can buy electricity and top-up data via the technology.
#5: USSD applications add convenience and security
USSD (Unstructured Supplementary Service Data) is real-time technology which creates a safe and instant way to verify customer details and provide customer access to their accounts.
The user dials a shortcode to get a menu of choices. Unlike the other mobile money SMS and mobile apps, USSD notifications and menus are not stored on the device, which enhances the security of sensitive information.
Unlike mobile money apps, USSD allows users of all mobile devices, instead of just smartphones, to use mobile money transfers.
This makes mobile money solutions like Adapt IT | Telecoms ideal in locations where smartphones are not yet prevalent, like Kenya for instance.
Neither does USSD based mobile money solutions require data. Instead, the user uses SMS for transactions; ideal in locations where people don’t have access to data or much of it due to financial struggle.
Disadvantages of mobile money transfers
While mobile money transfers are safe, users still fall prey to fake messages requesting for user details.
Solution: Adapt IT | Telecoms mobile money transfers are based on USSD which prevents user information from getting into the hands of malicious people. More importantly, since our mobile money solutions are not linked to bank accounts, the money in them is a lot safer.
Choice of app
As with all things, it is imperative to choose the right app based on audience requirements. The wrong app can mean services that are not helpful to users, or worst-case scenario, jeopardize user’s financial safety.
Just because an app is listed on a credible downloads platform like Google Play, for instance, does not mean all the apps are secure.
Solution: Be sure to choose the right app for your audience. Services provided and the technology used, must match their needs.
Some devices safer than others
Some devices from which mobile money apps are located are safer than others.
Solution: With Adapt IT | Telecoms mobile money, the type of device used does not matter because the technology is USSD based.