The Difference Between E-Money, Mobile Money & Mobile Banking.
In this article I’ll acquaint you with some important notions, that you can meet in Bank4YOU Group’s White Paper. In order to make it more clear what actually does MMRS solve I will start with important definitions, which will allow you to understand the specifics of our product better.
Mobile money generally refers to payment services operated under financial regulation and performed via a mobile device. Instead of paying with cash, cheque, or credit cards, a consumer can use a mobile phone to pay for a wide range of services along with digital or hard goods. Mobile Money is a technology that allows people to receive, store and spend money using a mobile phone. Bank4YOU Group decided to disrupt the existing state of affairs in the sector by converging crypto currency accounts with mobile wallets. With its insurgent solution MMRS it is planning to make mobile payments affordable, secure and intuitive.
Mobile payment is being adopted all over the world in different ways. In 2008, the combined market for all types of mobile payments was projected to reach more than $600 billion globally by 2013, which would doubled in comparison with the figures on February, 2011. Investment on mobile money services is expected to grow across the globe. It will result in revenue share of mobile money reaching up to 9% by 2018. Asia and Africa will demonstrate significant growth for mobile money with technological innovation and focus on interoperability emerging as prominent trends by 2018.
The use of mobile payments in developing countries has attracted public and private funding by organizations such as the Bill & Melinda Gates Foundation and the United States Agency for International Development and Mercy Corps. That’s why Bank4YOU Group is currently scaling its business to African, Latin American and Asian markets with the help of ICO campaign.
Why are we so sure that Mobile Payments Services is such a prospective field to conquer?
Mobile phones have evolved in a few short years to become tools of economic empowerment for the world’s poorest people. These phones compensate for inadequate infrastructure, such as bad roads and slow postal services in developing countries, allowing information to move more freely, making markets more efficient and unleashing entrepreneurship. This has a direct impact on economic growth: an extra ten phones per 100 people in a typical developing country boosts GDP growth by 0.8 percentage points, according to the World Bank.
Mobile Wallet (mWallet) — an electronic wallet that is stored on a phone. GSMA provides the following more specific definition: “mWallet is a data repository that houses consumer data sufficient to facilitate a financial transaction from a mobile handset, and the applicable intelligence to translate an instruction from a consumer through a mobile handset/bearer/application into a message that a financial institution can use to debit or credit bank accounts or payment instruments.” Bank4YOU Group’s mobile wallet has been presented at FinovateAsia 2017 and the demo version literally attracted a lot of the investor’s attention.
Using a special Mobile Money menu or app on their phone, users can transfer funds to another person or to pay a business such as a shop, taxi or restaurant. Users can also withdraw cash from their Mobile Money account at agent locations in their home country. We carefully designed Bank4YOU app specially to satisfy the growing demand on such type of customer’s needs.
Electronic Wallet (eWallet, Electronic Vouchers or Stored Value) — cash value that is stored on a card, phone, or other electronic device. The term wallet is used because the card or phone is considered a substitute for the cash normally carried in a person’s wallet. Our pre-paid cards are the one form of such an electronic wallet.
Mobile Financial Services (MFS) or Mobile Money refers to a range of financial services that can be offered across the mobile phone. Three of the leading forms of MFS are mobile money transfer, mobile payments, and mobile banking. Mobile Money Transfer (MMT) — services whereby customers use their mobile device to send and receive monetary value — shortly, to transfer money electronically from one person to another using a mobile phone. Both domestic transfers as well as international, or cross-border, remittances are money transfer services.
While MMT addresses person-to-person money transfers, mobile payments refer to person-to-business payments that are made with a mobile phone. Mobile proximity payments involve a mobile phone being used to make payments at a point-of-sale (POS) terminal. In these cases, the mobile phone may communicate with the POS through contactless technologies, such as Near Field Communication (NFC). Basically, currently we are working on implementing this feature in the MMRS. Your the phone will literally become a mechanism to purchase mobile-related services, such as ring tones, or as an alternate payment channel for goods sold online. Mobile bill payments tend to require interconnection with the bank account of the receiving business, and hence are considered part of mobile banking.
Mobile Banking — the connection between a mobile phone and a personal or business bank account. Mobile banking allows customers to use their mobile phone as another channel for their banking services, such as deposits, withdrawals, account transfer, bill payment, and balance inquiry. Our own banking application is additive as it provides a new delivery channel to existing Bank4YOU customers. That’s transformative model integrates unbanked populations into the formal financial sector.
