Mobile money in the travel industry
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.^