To send money internationally used to be about passing over cash to an agent, who then collected it from a representative on the other end. Today, it is much easier to money transfer bank to bank. However, with a growing number of people holding a smartphone – 65 percent of the world’s population in 2016, increasing to 73 percent by 2020, according to the Groupe Speciale Mobile – the exponential expansion of mobile money is unsurprising.
What is a mobile money wallet, and how does it work?
A mobile wallet is a reliable companion to traditional leather purses, as it safeguards your money in a completely secure manner. It saves payment information, such as credit or debit card numbers and cash balances. It helps to make purchases. Mobile wallets use encrypted software that works through mobile applications to prevent theft. They clear out your bank account by checking up on your funds.
Mobile wallets come in a variety of shapes and sizes.
Closed, semi-closed, and open mobile wallets are the three main categories.
It links to a specific merchant or private company. You can only utilize the funds to make direct purchases from that seller. These wallets will not allow you to transfer money from your wallet to your bank account.
As long as the merchant holds the payment portal, semi-closed wallets are with various merchants. Although money in semi-closed wallets is in your bank account, it cannot withdraw as cash.
Open wallets, on the other hand, are not restricted to those options. This form of wallet by the bank either directly or to a third party. The bank issues this type of wallet either directly or to a third party. Users can utilize the money in this wallet to make any purchase. For example, they can cash out money that is into their account.
How do I send money to my mobile wallet?
It is a popular question. All you have to do now is transfer money into your app wallet using an agent, net banking, debit card or credit card. Your money is sent to an offset account, ensuring that the mobile wallet firm does not control your funds.
When you make payments such as your credit card bill with your mobile wallet, a message is sent to the merchant informing them of the transaction. Then, the money is sent from your wallet to the merchant’s bank account as the retailer accepts the payment.
Sending money to a mobile money wallet has several advantages. For starters, the receiver’s life is made much easier by its instant accessibility. They do not need to go to an agent to get it. They can immediately utilize the money once it is received in their wallet to pay bills or make purchases. To withdraw cash, however, the receiver must go to an agent site. Rather than sending money to a bank account, you can send money to a mobile wallet if the receiver does not have one.