What is mobile money?

With so much buzz, anticipation and doubts over the newly-initiated mobile money scheme in Nigeria, a scheme which has thrived in countries such as Kenya, the Philippines and even Cote d’Ivoire, the success stories of those emerging countries will serve as a template for the Nigerian economy. But the big question is what is mobile money and how would it aid Nigerians and the economy?

With the Central Bank of Nigeria aiming at making the Nigerian society cash-less by  reducing the amount of physical cash in circulation and increasing electronic commerce, licenses have been issued to various mobile money operators such as Paga, Fortis and banks, in partnership with telecommunications network operators, including MTN and Globacom.

Although the mobile money operators and networks will have different modes of marketing this scheme, it should be noted that the basic aim is to allow Nigerians make transaction via their mobile phones, as only 25 per cent of Nigerians have access to bank accounts and financial services, while about 90 per cent own mobile phones. This scheme, according to experts, will not only be beneficial to the economy but will assist Nigerians in their daily transactions without fear of fraud.

However, despite the compelling benefits and innovativeness of the mobile money, Telecoms Compare, a telecommunications comparison website is of the opinion that certain issues have to be resolved before its official launch. These issues include who resolves customer issues? Is it the banks, the mobile money players or the network operators? This and many more need to be put into perspective.

In general, the scheme is a welcome idea and www.telecomscompare.com will keep a close eye on its progress, price variations and launch dates and feed you with constant information.