Mobile payments are no longer something that is just a cool tech trend; it’s a reality for the majority of people who have smartphones. Let’s look at the reasons why mobile payments have taken off:
- Emerging markets: M-Pesa is a mobile payment option in East African countries such as Tanzania and Kenya, and it is the market leader for mobile payments there. The reason why it has become so successful is it allows anyone to send payments whether they have a smartphone or not. Sending money to people whether it is savings or unsecured loans is therefore made possible and it is open to absolutely anyone.
- Budget apps: Smartphones have opened the gateway to many types of apps that can be used. People need to budget effectively and this is something that can be easily achieved if you budget wherever you are. This is ideal for people who want to track the online cash advances they are using or people who want to write down what they spend every day.
- Small transaction fees: Mobile payment start-ups like Square only charge small fees for people who want to accept credit cards. These fees are a tiny price to pay for what you get in return. This is especially good value for merchants who want to be points of sale especially on the go.
- Efficient: We live in a world where people can come and go as they please. Why should anyone have to wait until they get home to budget on their personal finances? This is a question that receives an answer through people who can manage their money on their phones. Banks can now send mobile bank statement alerts to their users so that it is known exactly how much is being spent regularly. This shows the efficiency of mobile payments.
Ultimately, the tech revolution has changed & users like managing money on their devices. Simply using a computer is not enough or inputting data into spreadsheets about weekly cash usage. Mobile payments and remittances will continue to grow as one of the most important tech trends for consumers and businesses across the world.