Mo­bile money in the travel in­dus­try

Nairobi Law Monthly - - Analysis Business & Law -

The ad­vent of mo­bile money trans­fer in Kenya marked the trans­for­ma­tion of eco­nomic in­ter­ac­tion, not just in the coun­try but in the re­gion, con­ti­nent and world.

The suc­cess of mo­bile money trans­fer sys­tems re­shaped Kenya’s bank­ing sec­tor and led to the fi­nan­cial in­clu­sion of 20 mil­lion peo­ple pre­vi­ously left out by for­mal bank­ing in­sti­tu­tions.

Ac­cord­ing to Cen­tral Bank of Kenya, the key sta­tis­tics for 2014 on mo­bile money trans­fer show that over 60pc of the adult pop­u­la­tion are us­ing mo­bile money trans­fer.

This trans­lates to around 26 mil­lion Kenyans who ac­tively use this mode of pay­ment.

It is worth not­ing that this con­cept has gained ground in the travel in­dus­try. In the past, cash pay­ment was the pre­ferred choice; this has since been over­taken.

Mo­bile money trans­fer is an easy process with no ma­jor com­pli­ca­tions, which adds to the sim­plic­ity of the process and ex­plains its pop­u­lar­ity. Many com­pa­nies, like Jo­vago for in­stance, gives you the op­tion to use your M-pesa when mak­ing book­ings. The way it works is sim­ple. Once you have made your ho­tel se­lec­tion on the web­site, you need to se­lect M-pesa as your pay­ment op­tion, avail­able to Kenyan res­i­dents, and make your pay­ment. A cus­tomer has a pe­riod of 24 hours to com­plete it.

This mo­bile pay is con­ve­nient as it saves time, you do not need to walk to of­fices or banks to make any pay­ment.

You also don’t need to own a credit card. One does not need to carry lots of cash to make pay­ments and this re­duces per­sonal risks.

The mo­bile pay ser­vice is also avail­able on MTN Money in Uganda and Tigo in Tan­za­nia, and coun­tries where th­ese mo­bile ser­vice providers have a reach.

Mo­bile money trans­fer in­tro­duces a great op­por­tu­nity to im­prove the cus­tomer ex­pe­ri­ence through any­where, any­time bank­ing.^

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