Banking services and payment solutions are an important economic pillar of any community because they ease the fundamental process of business exchanges. In the recent past, innovations in the banking sector have changed the conventional notion of recognized monetary organizations such as banks (Mas 124). The capacity to engage in financial transactions in an efficient, secure, and timely manner is an inherent part of the current generation. Mobile Money technology has transformed societies particularly in the developing nations. Precisely, the innovative utilization of mobile devices in offering financial services to customers has empowered people to open a virtual account, safe money, withdraw and transfer cash value in a way that is cheap, easy and secure. Some of these technologies include PayPal, M-PESA, and PAGA (Lal and Sachdev 10).
Research has indicated that mobile money demonstrate a synergy of two sectors that previously operated independently – financial services and mobile telecommunications (Mas 124). The success of Mobile Money technology has taken advantage of their distinct capabilities to both deliver and improve the financial services. In most parts of the developing nations, the revolution towards mobile money technology is a product of customer-centric model of invention. Moreover, in such areas, there has been a fast rising penetration rate of the internet and access to the mobile cellular network (Beck et al.11).
In addition, solutions offered by mobile payments in the emerging economies have been used as a way of prolonging financial services to the society to the groups of people referred to as the “under banked” and “unbanked”, which is approximately more than 50 per cent of the total adult population across the globe (Mas 125). Reports highlighted in the recent past, nearly half of the people across the globe are unbanked. Therefore, these payment networks are normally utilized for micropayments. Furthermore, the mobile technologies are turning out to be