What is Mobile Wallet Banking?

A mobile wallet or digital wallet is a convenient payment system that allows one to conduct one's banking via mobile phone. Western nations are taking a queue from developing countries, in that the mobile phone represents a method to conduct business via the phone service. This enables mobile phone users who do not qualify for a bank account to buy and sell, via their mobile phone service.

Mobile wallet banking offers security and the benefit of an online banking system to people who do not qualify for a formal bank account . . . yet! In time, they could develop credit to be approved for a bank account. The logic is, if the person can make regular small payments to a phone service - as many in developing countries do (developing nations represent the highest growth of mobile phones!) - they may be trusted to transact small purchases via their mobile phone. It is a line of credit for being a good customer, that is, a line of credit to the customer who makes regular, timely payments!

Adapted for people in the west who have bank accounts, the smartphone wallet, or mobile wallet, offers streamlined banking to people on the go! Which is us in the Western world. From an app on the mobile wallet, you may check the balance of your checking account, charge card, savings account, etc., and pay at point of sale. Sign in with secure pin, then transfer the $$ through cyberspace.

There are several systems offering banking services via mobile phone.

Fundamo is one of the major players of creating softwares to enable service providers to offer a mobile phone - a selling point, if any, for those rural poor who do not have a bank account. Fundamo has even collaborated with Western Union. An ideal application is oversees family deposit money into mobile banking account, so that relatives and small businesses have purchase power to meet their needs! In June 2011, Fundamoo was acquired by Visa, Inc. Try the demo available on the Fundamo website, below. Click inside the movie to start. If it doesn't start, right click, and select, "Play." Use the arrow keys inside the circle to scroll up and down; and the two dashes on the top buttons to "select" and go "back." You'll notice, mobile banking is password-encrypted, so very secure!

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player