Mobile payments are gaining popularity at a very high speed. This is probably because of the convenience and faster processing of cash. Besides, one doesn’t need to physically visit a bank in order to send or receive money.
Considering the stiff competition experienced in the money transfer industry, many traditional banks have started offering mobile banking to their clients to encourage branchless banking. Many people today own smartphones and have access to the internet – making mobile banking more convenient.
However, many people are still hesitant to embrace mobile banking. Most of them see a money transfer mobile app as a risky way to send or receive money. But the truth is that the benefits of using mobile money transfers outweigh the risks.
Here are five myths about money transfer via mobile:
1. Mobile Money Apps Are Not Secure
This is a general misconception that many people have about money transfers via mobile. There’s no doubt that mobile payments carry a certain level of risk, just like any money transfer service. But this should not be used as an excuse to deter people from sending money via mobile.
There are many benefits of mobile payments like instant transfer that can’t be found in most traditional banks. As a user, you also need to play your part in promoting safe money transfers.
2. It Is Too Costly
This is not true because mobile wallets are among the cheapest when it comes to sending and receiving money across the world. You can’t compare sending money via wire transfer to sending money to a mobile wallet in terms of fees.
The fees charged by service providers often vary and depending on the amount you are sending. The more you are transacting, the more the charges will be.
3. My Bank Will Be Hacked If I Lose My Phone
Absolutely wrong. The truth is that mobile banking applications do not store user information on the device but rather on the cloud. This means that even if your mobile phone is stolen, no one can access your banking information unless they have your password.
Additionally, some mobile banking applications contain features that allow you to disable the app in case it gets lost. So whoever steals or finds the phone won’t be able to login into your bank.
4. Mobile Banking Apps Have Access To The Personal Data Of Users
There are instances where a mobile banking app will ask you to give access to your contacts and other information when signing up. However, such information is often requested for a better user experience rather than for malicious purposes.
5. Banking Apps Offer Basic Services
Most banks are starting to offer other major services through mobile apps. For example, some banks have features where users can open new bank accounts without visiting a physical branch.
In general, there is a lot of misinformation about money transfers through mobile apps. But the truth is that Mobile payments offer a great option of sending money instantly despite the few risks that exist.