*Short version. A longer, more detailed article exists for Premium Members.*

Safaricom PLC, the Kenyan telecom company behind M-PESA Africa recently introduced M-PESA Ratiba, a new feature that allows users to set up standing orders directly from their M-PESA wallets.

At its core, M-PESA is a mobile money service that enables people to make payments, transfer money, pay bills, and access microloans without needing a traditional bank account. While M-PESA has been particularly successful in providing financial services to unbanked populations, the launch of M-PESA Ratiba is a great advancement for the African economy as it enables subscription services and unlocks new opportunities in industries that have not yet reached mass penetration in Africa, such as media, entertainment, and digital services.

Underneath this, what is also interesting is how the mobile wallet technology has democratised access to financial services, turning regions with limited banking into digital finance hubs.

Mobile money and mobile payments are often confused, though they serve different roles within the financial ecosystem. The confusion arises because mobile phones have become a de facto tool for financial transactions and mobile wallets can actually function both as a mobile money service and as a mobile payment solution.

This overlap blurs the lines between the two, leading to misunderstandings about their distinct roles in the financial ecosystem. So here is our take👇🏽

◾Mobile money acts as a foundational financial service for unbanked populations. This service is often offered by mobile network operators and is widely used for peer-to-peer (P2P) transfers, bill payments, and even saving money.

◾Mobile payments on the other hand build on this, extending the ability to make purchases and conduct financial activities in more diverse ways. Mobile payments refer to a broader category of transactions, where a mobile device, such as a smartphone or tablet, is used to authorise or complete a payment, including those made with mobile wallets like Apple Pay or Google Pay, as well as payments made via banking apps. A mobile payments transaction can diverge into different paths depending on the technology used and the specific context of the transaction.

👉🏽#Paymentexperts, any perspectives to share on #mobilepayment vs #mobilemoney🎤?

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