siliconindia | | September 20189Most providers offer the mobile money service via the Unstructured Supplementary Service Data (USSD) access channel. This is available on both feature phones and smartphones, thereby making the service available to everyone who owns a mobile phone.An important part of mobile money is the agent who offers last mile services. These agents help customers register for the mobile money service and deposit & withdraw cash into and from mobile money wallets. A majority of mobile money services are offered by telecom operators, as they can leverage their extensive recharge agent network to offer last mile mobile money services. From Money Transfers to Micro-Loans: A Phased GrowthMobile money services like M-Pesa, EcoCash, Airtel Money and Orange Money have transformed the financial landscape in developing countries. For instance, M-Pesa in Kenya is utilized by at least one person in 96 percent of Kenyan households. EcoCash in Zimbabwe accounts for 70 percent of all electronic payments in the country. Orange Money in Mali processed transactions valuing $4.8 billion in 2017, equivalent to 30 percent of the country's GDP.This scale was carried-out in two phases. In phase one, mobile money service providers focused on acquiring customers and growing the agent network. Services on offer were restricted to basic ones, such as person-to-person transfers and airtime recharge. Once these got off the ground, operators added other transactional services such as payments for bills, merchants and salaries. Phase two began once these basic services reached critical mass, expanding into micro-loans, savings, savings clubs and insurance. Other services such as international remittance, financial aid payments and tax payments also became popular. In time, mobile money providers forged partnerships with banks, money transfer operators, government agencies, and non-governmental organizations to build a comprehensive digital payments ecosystem. The Impact of Mobile Money The idea of mobile money is to provide convenience to unbanked customers, through anytime, anywhere
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