Differences Between Mobile Banking and Mobile Money Banking Service

Somebody asked me that question, and I thought it will be a good share for those of you out there who also don’t know the core differences between Mobile Banking and Mobile Money Banking services being offered by most of the money deposit banks down here.

Though both of them offer very similar bank transaction services, but it is still very important to be able to differentiate between them in order for you to have full knowledge of what you want to subscribe for because some banks in the country offer both services while some offer either.

Now let’s start with Mobile Banking service…This is just a platform where most banks offer their customers opportunity to carry out most of their regular banking and some other off-banking transactions on their mobile devices, mostly through the use of the bank mobile installed apps.

Here, any bank customers partaking in the mobile banking service must have installed and activated the app on their mobile devices by linking it up to their bank account number.

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Your phone must be internet ready before you can transact with Mobile Banking services.

And again, customer must own a bank account with a particular bank before subscribing to and making use of Mobile Banking Services, and it does not provide direct avenue for ATM fund withdrawal

Now, talking about Mobile Money service…This platform, similar to Mobile banking in many ways, but Mobile Money banking service may or may not require you to download app to your phone before you can subscribe to it.

For example apart from downloading Mobile Money app to your mobile device some banks or financial institution do create other avenue of subscribing to the service, like a web based platform for registration and activation of Mobile Money services.

Here you do not actually need bank linked account number for Mobile Money set up and transactions as your phone number is what usually serve as your bank account number.

On Mobile Money transfer money transaction, the 2^nd party on the receiving end don’t even need to own a bank account with any bank nor register/activate Mobile Money on his mobile device before he/she can partake in Mobile Money withdrawal transaction.

With Mobile Money, withdrawal from ATM is a common and integral feature and also you can use the services to withdraw from 3^rd party participating agents (aside bank) on the Mobile Money services.

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In some cases, you can carry out Mobile Money transaction without using a phone that is connected to the internet (just by dialling required transaction codes)

From all we have written above, you can easily deduct or summarize that the 4 core differences between Mobile Banking and Mobile money services are;

·     Mobile banking requires bank account number, while Mobile money requires phone number as bank account number

·     With Mobile Banking, withdrawal transaction feature is not enabled whereas ATM withdrawal is an integral feature associated with Mobile Money

·     In mobile banking, the participants most have an account with a bank, but in Mobile Money, the 2^nd party participant don’t need to own any bank account before he/she can participate in the service

·     Mobile Banking services require internet ready smartphones for transactions, while Mobile Money, in some cases, you can carry out transactions without having to connect to the internet

In conclusion both Mobile Banking and Mobile Money banking services offer individuals ability to perform different banking transactions via mobile devices but there differences have been broken down for you above.