Mobile money and Mobile Banking are two separate terms for a modernized way of cashless transaction. Mobile money and Mobile banking, both are maintained by the financial institution that provides the service for the users.
Mobile Money vs Mobile Banking
The main 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 with addition to other services.
Through Mobile money, one can pay, receive and store money with the help of a mobile phone and internet. On the other hand, Mobile banking is a service provided by the bank to its customers for all kind of transactions and other features by using a phone or tablet and internet connection.
Mobile money is a means of cashless transaction which helps in paying bills or buy goods online with the help of a phone and Internet connection.
Mobile banking is also a means of cashless transaction with the help of a phone and 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 Between Mobile Money and Mobile Banking (in Tabular Form)
|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 takes place.|
|Services||Acts as a Mobile wallet||Acts as Net banking|
|Banking||It is an agent banking.||It is a branch banking of the bank.|
What is Mobile Money?
Mobile money is a digital wallet service which runs through an app that is 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 money, purchase items, pay bills and receive money by using mobile money. It mainly allows Person to Person i.e. P2P payments which is easy and safe.
It is modern technology and its service provided around the world 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 safe transaction that takes place 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 the 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 which also runs through an app and managed by the bank. Mobile banking enables its customers to make all kinds of transactions, locating ATM, pay loans and other services.
Mobile banking service is provided by the bank which allows it’s 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 easier, one does not have to wait in the long queues of the bank for any transaction or any other work.
Through mobile banking app, the customer can maintain mobile cheque deposit by 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 at 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 in our account 24 hours and seven days a week.
- Convenience: It is a way to save our time. Many mobile banking app provides mobile cheques deposit, with this feature the user can deposit a cheque right from the home or office or anywhere. One does not have to wait in the long queues anymore.
- Good Security: The mobile banking apps provides a good security by providing a multi- factor authentication. But one should keep in mind that they should never share the codes with others. Some phones and apps comes with many security features like scanning fingerprints or scanning face. 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 the user all kinds of transaction with other bank services.
- Mobile money is usually 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 and not the bank account of the user whereas Mobile banking requires the bank account of the user.
- Mobile money is managed by the companies who run the app whereas Mobile banking is managed by the bank.
- Mobile money acts like a mobile wallet or digital wallet but Mobile banking acts as net banking for the user.
Both, Mobile money and mobile banking are digital money transaction service. Mobile money and Mobile banking consume less time and make the work of the user easier. There are many advantages of using Mobile money and Mobile banking but there are many disadvantages too.
The user with less knowledge of how the app works might find it difficult to operate. Many people cannot afford smartphones for the app to work. Both, Mobile money and mobile banking are a huge step of the financial sector in modernization and going cashless.