A few years ago, the Central bank of Nigeria(CBN) started issuing licenses for mobile money operations in the country and patronage to the services has been fairly growing. It is still a relatively new form of banking service as Nigerians had for long been only used to traditional banking by keeping money in bank accounts.
Nigerians are yet to fully understand how mobile money service works but the concept has been getting a lot of publicity in the media in form of adverts promoting it. The idea is to allow people have access to their funds and make payments as long as they have a mobile phone and a mobile money account.
In order to start using the service, users would first of all register for it by dialling a USSD code from a registered phone or sending an sms to a short code and then following the procedure required. When users get registered, their phone numbers become their bank account number and they can fund the account at any mobile money outlet or participating banks. After registration and funding, mobile money users can then have access to funds in their bank account by simply making use of their mobile phones either by using the installed apps or dialling specific USSD codes with their PINs.
Users on the mobile money platform can always make use of their funds to settle phone bills, pay tv bills, utility bills, school fees, send money to beneficiaries and even make withdrawals. So with mobile money banking, users can replace their ATM cars with their registered mobile phones.
One of the important features of a mobile money account is your PIN which is a four digit number meant to be only known to you and if you do lose your phone, you can always report to your bank or service provider so that they can remedy the situation. You can as well so a sim swap to get back your number so as to resume the mobile money service on your line. The secure feature that requires your PIN for transactions is to ensure that no other person other than you would be able to use your phone.
Another good feature about mobile money bank accounts in Nigeria that I mentioned is on the issue of cash withdrawals which you cna make any time without having to use an ATM card. It works as a cardless ATM operation that you can do but you just have to initiate it first from your phone. You will be able to make withdrawals from ATM that allow such cardless withdrawals.
One other thing i've noticed about mobile money is that the funds you move into your mobile account are mostly for spending or just storage but it doesn't earn any interest despite the fact that these service operators still keep your money for a long period of time. Would Nigerians really be willing to move their funds from their bank accounts to a mobile money account just because of convenience of settling bills? Well, only time will tell.
Mobile money has indeed come to stay and I think since most people have become used to ATMs and mobile banking, mobile money would be gaining more ground as time passes on and as more people get better educated about using such smart banking services.
Subscriber dials a USSD code or sends sms from his phone including his PIN and requesting a service
Service provider debits his mobile money account and sends a feedback
Subscriber gets his request granted
It is that easy but you should keep your PIN private
Are mobile money customers insured by the NDIC in the same way banks are?
How secure are mobile money accounts in cases on phone theft?
Why do funds in such accounts not earn any interest?
Are there any hidden fees?