How mobile money apps can help improve financial planning

They encourage intentional spending and a more disciplined approach to money management

The adoption of QR and contactless payments significantly reduces the need for physical exchanges of money. Reuters
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Consumers and businesses alike benefit from the efficiency of mobile money solutions, as they streamline operations and enable a more fluid exchange of goods and services.

This shift towards contactless and mobile payments also influences consumer spending by offering a layer of security that traditional cash transactions often lack.

The encrypted nature of digital transactions adds a level of protection against theft and loss, further increasing the attractiveness of these payment methods.

The ease of tracking spending through digital means, compared to cash transactions, offers another layer of convenience.

Consumers can monitor their spending more closely, allowing for better budget management and financial planning.

This awareness can lead to more intentional spending habits, with an opportunity for enhanced financial literacy.

The convenience and speed of QR (quick response) and contactless payments have led to an increase in purchases, with consumers more likely to make small, frequent transactions.

One of the key aspects of QR and contactless payments is their ability to enable instant gratification for consumers.

This immediacy in completing transactions enhances the overall user experience, making it more likely for consumers to adopt and regularly use these payment methods for a variety of purchases.

The convenience of completing a transaction with a simple scan or tap not only simplifies the purchasing process but also encourages spontaneous buying decisions, potentially leading to an increase in impulse buying among consumers.

The adoption of QR and contactless payments significantly reduces the need for physical exchanges of money. This convenience is especially relevant in today’s fast-paced lifestyle, where time is a valuable commodity.

Mobile money is being leveraged to transform traditional saving habits into modern, digital-first strategies by introducing innovative features that gamify the saving process.

This approach moves away from the complex concept of saving to creating intuitive saving habits through mechanisms such as tailored saving goals.

This customisation encourages users to engage more actively with their savings, turning a deferred payment into an incentivised activity.

Mobile money technology also offers automated plans where users can set goals and automatically allocate funds, making saving effortless and more consistent.

This method not only simplifies the act of saving but also embeds it into the fabric of everyday financial decisions, encouraging a more disciplined approach to money management.

Innovative features like real-time spending tracking and predictive budgeting further assist users in managing their finances more effectively, encouraging a shift from reactive to proactive financial management.

Mobile money also empowers users with unprecedented control over their finances as these apps provide an intuitive user interface that simplifies navigating financial services, making it accessible for users with varying levels of tech-savviness.

These services can include features like bill payments, mobile top-ups and merchant payments within a single platform, eliminating the need for a number of banking relationships or physical visits to service providers.

Mobile money is being leveraged to transform traditional saving habits into modern, digital-first strategies by introducing innovative features that gamify the saving process
Eric Karobia, chief executive, Whizmo

Upcoming solutions are considering interesting features like goal-based piggy banks that allow users to set up specific targets for putting some funds aside, complete with progress tracking and motivational reminders.

For instance, users can designate savings for tangible goals such as a party or a bicycle and name their savings accordingly.

The ability to create named saving pots for specific goals – be it for travel, education or leisure – personalises the saving experience, making abstract financial goals tangible and achievable.

This personalisation can be reinforced by allowing users the flexibility to determine their saving timelines and access to funds, fostering a sense of ownership and engagement with their financial growth.

Savings challenges and gamification elements can also be considered to make saving money a more engaging and rewarding experience, fostering a community of savers who motivate each other.

QR and contactless payments are now seen as key drivers in achieving a cashless society, reducing the reliance on physical currency and making transactions more secure and traceable.

Merchants offering discounts or loyalty rewards for mobile payments further incentivise consumers to choose digital over cash payments, gradually shifting the overall spending culture towards digital.

Looking ahead, partnerships with retailers, public transport systems and government services are in development to expand the ecosystem for QR and contactless payments, ensuring that mobile money is integrated into all aspects of daily life.

Eric Karobia is the chief executive of Whizmo

Updated: May 13, 2024, 4:00 AM