Mobile Money in Nigeria
Mobile Money is a payment method that allows you to pay for goods and services using your phone. In a cashless Nigeria, Mobile Money is one of the e-payment options available to Nigerians. It lies at the heart of the Central Bank of Nigeria’s (CBN) cashless or cashlite Nigeria strategy. We’ll look at mobile money in Nigeria in this piece.
The Central Bank of Nigeria, CBN, has already authorised a number of firms to offer mobile money in Nigeria. Some companies have already begun to offer services, while others are aiming to do so in the near future.
List of Mobile Money Services in Nigeria
- PocketMoni
- Paga
- QikQik
- GTBank 737
- MTN Mobile Money
- U-Mo
- Stanbic 909
- EazyMoney
- Glo Mobile Money
How does Mobile Money work?
Your phone becomes an electronic wallet when you use Mobile Money (e-wallet). You may use your mobile e-wallet to store funds and make electronic payments for goods and services, as well as send money to family and friends.
Mobile Money services, such as GTBank’s *737# and Stanbic’s *909#, allow you to rapidly transfer funds from your bank account to a merchant’s account with only a few taps on your mobile phone.
This decreases your need for cash when shopping and may allow you to stay below the CBN’s daily cash limits. Your e-wallet can also be used to receive funds.
Your e-wallet can be funded by authorized service agents, mobile money service partner banks and networks, ATM/Debit card transfers, or any other funding option offered by your service provider. Once your mobile money account is funded, you can use it to send money to family and friends, buy airtime from any network, and pay bills such as DSTV, MyTV, and PHCN bills, among other things.
Some locations allow you to withdraw cash from your e-wallet.
Most transactions, including as sending and receiving money, making a deposit, or withdrawing money, are subject to a transaction charge set by the service provider. Before signing up for a service, ask the mobile money agent if there is a monthly rental fee.
So far, there are three types of mobile money implementation in Nigeria the operator branded, provider branded, and bank operated services.
Operator Branded Services
Operator-branded mobile money is a value-added service provided by a network operator to its subscribers that allows them to pay for goods and services using their phone. Network operators do not hold mobile money licenses, but they can offer mobile money to their users through partnerships with licensed mobile money providers, financial institutions, payment processors, and merchants. MTN Mobile Money is an example of a branded service provided by an operator.
When it comes to mobile money, network operators have an advantage because they own the network and can easily roll out services to millions of subscribers. They may also quickly convert their recharge card agents into mobile money agents, making service deployment easier and less expensive for network operators.
The main benefit of an operator-branded service is that the mobile money application is stored in the SIM, eliminating the need to download any program and the associated incompatibility difficulties. If your existing SIM isn’t compatible with mobile money, all that may be required is a SIM swap.
Because the operator’s branded service is stored in the SIM, any mobile phone can utilize it, from the cheapest 5,000 Naira phones to the most expensive. Operator-branded services are expected to outperform their provider-branded counterparts.
The main disadvantage of the operator-branded service is that you must be a network subscriber to use it. In addition, some operator-branded mobile money services partner with only a few banks, keeping many other banks’ customers out.
Bank Operated Services
Banks are increasingly offering a third level of service. Using a simple USSD code on your cell phone, you can simply transfer funds from your account to another person’s account. The *737# service provided by GTBank is an example.
You can also quickly purchase recharge cards and pay bills. Dialing *737*100#, for example, will load 100 Naira credit to your default cell phone.
The disadvantage of bank-operated mobile money services is that you must have one in order to utilize them. Another consideration is that the code must be remembered. However, if you continue to utilize the service, the latter issue will be resolved.
Have you utilized a mobile money service before, and how did it go? In the comments section, let us know what you think about these services.