Vodafones M-Pesa- a Mobile Wallet Revolution

Abstract

The time is not far when at your favourite fast food corner instead of paying cash you will be transferring the money to their account. Mobile commerce has led to regular purchase of goods and services in a wireless environment. Massive growth of mobile phone subscribers has led to a boom with electronic commerce on mobile. Mobile phones have become an alternative channel for availing banking services. Mobile web payments, Mobile Billing, SMS based transactions, contactless near field communication have become the modes of payments. The need to carry physical money is fast disappearing. Your Sim card will soon act as your debit and credit card. M-Payments are being used to pay electricity bills, mobile phone bills & recharges, hospital bills, fare taxi & buses, etc. One such system of Mobile money: "M-Pesa" proposes a mobile payment system in which any person can send money to the receiver using his mobile phone. The system considering the unbanked population of India uses Mobile money accounts which can be recharged through vouchers. The sender specifies the amount in the application and sends it to the receiving party. The unbanked receiver can easily withdraw the amount from his mobile money account. M Pesa's eventual goal is conversion of every mobile money account into a fully functional savings account.