Hard cash or mobile money?
Do you prefer some money in hand or digital mobile money?
The rise of digital platforms and the ease of access to e-commerce services has drastically improved.
Despite technology making life seamless in terms of purchase, some people still prefer to stay old school and transact with hard cash. The introduction of M-Pesa in Kenya felt its first real breath during the post-election crisis of 2007.
You would think in this day and age people would have now normalized e-payments, yet people still prefer cash! Why is that?
Should you use hard cash or mobile money?
For big purchases, one requires to carry a lot of cash. On top of that, you will need a rather large wallet to carry and store your money.
Whereas mobile money is flexible, you can hold as much money on your phone. So yes, for large amounts, it’s better to settle for mobile money.
Mobile money does not charge you for the deposited cash, i.e. you can deposit your cash and save it in your mobile money for as long as you want.
Hard cash is best for small purchases and everyday finances.
That way, you don’t get affected by the transaction charges for less than KSh 1000 purchases.
It is also advisable to always have cash in hand when travelling long distances and it comes in handy when your phone is out of charge.
Banking over mobile money or hard cash?
Mobile money has allowed for the unbanked to finally be included in the banking process. Gone are the days of hiding money in mattresses or holes in the wall.
With the help of M-Pesa pay bill numbers, you can now deposit cash instantly from your phone to your debit account and vice versa.
To deposit cash to your bank account, you might have to wait in line at your local bank, fill some paperwork then get served by a teller. It’s a laborious task and takes a lot of time compared to mobile money transfers.
Although a series of banks have introduced ATM cash deposits, the process is still unfamiliar to many Kenyans.
The positive here is that now banks have agents to assist the unbanked to deposit smaller amounts with ease. You can find agent centres in your area, just look for the brand colours and signages.
Banks and mobile money platforms have integrated their systems to the extent of syncing purchases from the comfort of your home. i.e. Bank to M-Pesa to buy goods to deliver at your doorstep.
Current trends are in favour of mobile money transfers. With the economy on skates, almost every Kenyan has to adapt to e-commerce and e transfers. Banks have!
Get yourself a registered line that allows mobile money and try to at least have some cash on your phone like KSh1000 every month as a short term backup plan.
Financial developments
Going cashless means banks and other financial institutions can secure more money and run smooth operations.
Before netizens hoarded lots of cash in the name of ‘keeping it safely’. Now, financial institutions dealing with monetary distributions like fintech apps and SACCOs are able to carry their operations smoothly.
The benefits of mobile money are by far great. Businesses benefit against the risks associated with handling hard cash concerning: costs, safety and time.
Cash or mobile money against fraud
Cash is vulnerable to theft. On the other hand, mobile money exists virtually with passwords for protection.
Mobile money applications are encrypted to allow access to only the owner. However, your phone can still be stolen with cash on your sim card.
Not to worry, you can always call your service provider and replace your phone and sim and still have access to your money.
Mobile services have come up with methods to limit mobile money fraud, such as:
- Encryption of user data
- Provision of identification upon cash transaction
- Use of passwords and PINs
Mobile service providers are further able to track down fraud cases and block your sim card from further purchases if reported. This might not be the case for cash.
Safety
In catastrophic times, using mobile money is a safer means of money transfer. Currently, the pandemic: COVID-19 has caused the Kenyan government to emphasize the use of M-Pesa over cash.
Mobile money prevents direct contact amongst people hence a healthier lifestyle. See how mobile money is a value add?
On the other hand, money is considered to be the one thing that carries most germs.
At the end of the day, you just need to be careful and alert. There are instances where hard cash will be better and vice versa.
Where and when you want to use your money will determine which way to go.
Money transfer between cash and mobile money
Mobile money is easily transferable from one person to another and is very convenient.
Currently, mobile money allows you to send money to people around the world, allowing secure, comfortable and instant money transfer within the click of a button.
An interesting fact is you do not get charged for depositing money to your phone, but you will get charged to withdraw it.
Sending hard cash to your friends and family via courier or Posta is quite insecure, time-consuming and expensive. No one does that anymore.
Financial emergencies
Kenyans who prefer cash to mobile money rarely use M-Pesa services, therefore, are likely to have no money in their mobile money accounts.
In times of financial emergencies where banks and ATMs are inaccessible, a mobile money user is more inclined to solve the issue than a cash holder- who might not have the cash at that moment. (Availability to move money from bank to phone.)
It is simpler for emergencies to be solved using mobile money because most companies have made room for such.
Convenience
Carrying cash comes with challenges such as keeping it secure. Hard cash is weight, especially if it is a significant amount.
On the other hand, mobile money is virtual and portable.
It is configured to your phone other than carrying it in your pockets. With mobile money, carrying your phone for transactional purposes is what matters.
Flexibility
The flexibility that comes with taking your phone everywhere is unmatched.
Some transactions like online purchases are limited to mobile money and debit or credit cards, like the instant mobile loans that only accept repayments through M-Pesa.
Therefore, if you do not have mobile money, your purchases are limited to only cash-accepted transactions.
Mobile money benefits over hard cash
Mobile money has other services other than money transfer.
With M-Pesa, you can open interest generating accounts like M-Shwari, which is free for depositing and saving. Users can borrow low-cost loans, airtime and data bundles.
Instead of having your hard cash redundant, wouldn’t you rather deposit it safely in a savings account and make a profit?
In addition, mobile money services come with cash rewards and promotions for their esteemed customers.
Although mobile money has provided smooth transactions over time, cash is still widely used in Kenya.
The best option is to be able to transact with all the three: cash, mobile money, debit cards. Anyway, have you ever wondered what would life be without M-Pesa?
(22 votes, average: 3.91 out of 5)
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