Mobile money and Mobile Banking are separate terms for a modernized cashless transaction. Mobile money and Mobile banking are maintained by the financial institution that provides the service for the users.
Key Takeaways
- Mobile money allows users to make transactions using their mobile devices, while mobile banking involves traditional banking services through mobile devices.
- Mobile money services are provided by mobile network operators or third-party providers, while banks provide mobile banking.
- Mobile money services are more prevalent in developing countries with limited banking infrastructure, while mobile banking is more common in developed countries with established banking systems.
Mobile Money vs Mobile Banking
The difference between Mobile money and Mobile banking is that mobile money enables only person-to-person (P2P) payments, and Mobile banking enables all kinds of transactions in addition to other services.
Through Mobile money, one can pay, receive and store money with the help of a mobile phone and the internet. On the other hand, Mobile banking is a service the bank provides customers for all kinds of transactions and other features using a phone or tablet and an internet connection.
Mobile money is a means of cashless transaction which helps pay bills or buy goods online with the help of a phone and Internet connection.
Mobile banking is also a means of cashless transactions with the help of a phone and an internet connection, but it provides more facilities to the users. The user can have all the banking services at the fingertip without visiting the bank or atm.
Comparison Table
| Parameter of Comparison | Mobile money | Mobile banking |
|---|---|---|
| Bank account | It does not need the user’s Bank account. | It does require the customer’s bank account. |
| Provider | The financial service provider company runs mobile money. | It is a bank product run by the bank. |
| Transactions | Transaction of Person to Person (P2P) payments takes place. | All kinds of transactions take place. |
| Services | It acts as a Mobile wallet | Acts as Net banking |
| Banking | It is agent banking. | It is a branch banking of the bank. |
What is Mobile Money?
Mobile money is a digital wallet service that runs through an app installed in the phone, and it works when the phone is connected to an internet connection. It is a means of storing and managing money in an account linked to a phone number.
Mobile money enables its users to go cashless while making payments. The user can store cash, purchase items, pay bills and receive money using mobile money.
It mainly allows Person to Person, i.e. P2P payments, which are easy and safe.
It is modern technology, and its service is provided worldwide with increasing popularity in Africa, Asia, and Latin America. It is fast, easy to use, secure and can be used in remote areas with a mobile phone signal.
Some of the advantages of using Mobile money:
- Safe: Mobile money is a secure transaction between person to person, and no third party is involved.
- Fast: Mobile money is fast as it works through the internet; the money can be sent or received instantly, even in remote areas.
Cheap: Mobile money is cheap because it does not charge high taxes from the user whenever a payment is made.
What is Mobile Banking?
Mobile banking is a digital service that runs through an app and is managed by the bank. Mobile banking enables its customers to make all kinds of transactions, locate ATMs, pay loans and other services.
Mobile banking service is provided by the bank, which allows its users to conduct any transaction from any place remotely using a mobile phone or tablet with internet access. It makes the work of the user more accessible; one does not have to wait in long queues at the bank for any transaction or any other work.
The customer can maintain mobile cheque deposits through mobile banking apps using a smartphone camera. The customer can also generate e- passbook or change the phone number linked to the account with the help of mobile banking.
It is like having the bank in your hands.
Some of the advantages of Mobile banking:
- Accessibility: It is easy to access from anywhere and anytime. We can use a mobile banking app to check our account 24 hours and seven days a week.
- Convenience: It is a way to save time. Many mobile banking apps provide mobile cheques deposit; with this feature, users can deposit a cheque right from the home, office, or anywhere. One does not have to wait in long queues anymore.
- Good Security: Mobile banking apps provide good security by providing multi-factor authentication. But one should remember that they should never share the codes with others. Some phones and apps come with many security features, like scanning fingerprints or scanning faces. One can lock their phones and apps with such features.
Main Differences Between Mobile Money and Mobile Banking
- Mobile money allows the user to only pay, receive and store money, whereas Mobile banking allows all kinds of transactions with other bank services.
- Mobile money is a person-to-person payment service, whereas Mobile banking is not only a person-to-person payment service but also it does all kinds of transactions.
- Mobile money requires the user’s phone number, not the user’s bank account, whereas Mobile banking requires the user’s bank account.
- Mobile money is managed by the app companies, whereas The bank manages mobile banking.
- Mobile money acts like a mobile or digital wallet, but Mobile banking acts as net banking for the user.
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