Millions of Africans are using their mobile phone to send and receive money with their carriers help. There is no need to go to your bank to do this any more while you don’t have to travel with your money in crowded buses. The mobile payment gate ways is becoming more popular in the region. Nearly all the carriers are providing this service to their registered clients using their cell phones.
Even some of the carriers offer mobile banking facility to their clients where small interest is too paid for their savings. So my phone has became as my wallet for Nealy half of the Africans.
For example Vodacom Group is offering a bank account in the M-Pawa which is also offers 5% interest for the money their clients have in their bank account. Their M-Pesa which got 32.5 million subscribers in South Africa alone and in other African countries they have nearly 27 million account holders with them.
This banking system is good for people who are ignored by the banks because of their low financial position and income status. To open such a mobile phone bank account in M-Pawa all you need to have M-Pesa account a cellphone and your identity card.
On the other hand Vodacom joined with the Commercial Bank of Africa Ltd to provide mobile banking for the poor people. What they get a share of any interest paid on loans to its customers.
Any M-Pawa customer can go to the agent and pay the money to him and in return he will provide a code which the customer will punch it using the dial pad and the wireless carrier texts the agent to confirm the transaction.
Bharti Airtel offers Airtel Money and it allows clients to transfer money and pay electric and cable TV bills through it.
Tigo offers Tigo Pesa which is accessed by nearly 3.5 million users.
For the M-Pesa and M-Pawa account holders there are nearly 70,000 agents are ready to serve them.