According to World Bank’s Global Findex Database , highlights in their financial inclusions survey that 21% of adults in Sub Sahara Africa have mobile money accounts.
This data evidently shows the expansion of the power of financial technology in the region.
Quoting the GSMA in its ‘The Mobile Economy Sub-Sahara Africa 2018 report’ it indicates that there are 135 mobile money service operators running business at the end of 2017.
Brands like M-Pesa in Kenya, Paga in Nigeria, MTN momo mobile money etc. are gradually driving the cashless system out of society. The mobile money system plays a vital role in expanding and extending financial services to all especially people in a rural and traditional communities. The advantage to this process is quite huge comparing it to the traditional banking system; the mobile money system spells out safety, secure, fast and effective way of money transaction.
Impressive? Yes but what exactly lies beyond the cashless system. Although the system is undeniably beneficial it has it unsung woes attached to it, which has become a hard task to eradicate.
-Fraud: Fraud is one of the biggest hurdle to the mobile money system. People are experiencing these fraudulent activities day in and out. Although the idea of caution exist among people some fraudulent individual find very convincing way to steal money from people’s account.
Till date owners of these mobile money businesses haven’t found an ideal ways of halt such activities leaving people in more risk especially people in the rural places.
- Cost: Although, this cashless system is well appreciated by people the underlying cost attached to this system can be a hindrance as well. The picture paints the process clear that the owners of these businesses makes more money than the usual. The additional cost is often seen as a robbery in daylight. How do you pay for withdrawing your own money out of your own account. As it stands people don’t have a choice than to succumb to these costs.
- Language Barrier: Communication is critical in every thing we do as humans, often these systems communicate their services through English language, which poses a problem for rural people, this de-values security bases for such a populace. Often they go through people to use the platform which is not quite safe.
So again the cashless system is quite beneficial but beyond the system are underlined factors which often goes against the users Let think about this way we are being provide a fish for a meal, well cooked and garnished but somehow tiny portion of poison is inside the fish. We are going to enjoy but we will definitely suffer and pay for it in the long run.
Article from AFRIC editorial
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