Abstract – This post was originally published on 26-June-2014 on Linkedin. Mobile Money or M-Money refers to financial transactions or services that can be carried out using a mobile device what ever this is but for Payments Revolution; Speed is The King. Very popular phenomena on internet “If you are looking for the next big thing, and you are looking where everyone else is, you are looking in the wrong place”, does not fit atleast in fintech domain. FinTech is booming, redefining financial services and Banking. Artificial Intelligence technologies like neural networks, machine learning, deep learning etc are reinventing FinTech in turns. Banks are struggling to stay in the game and heavily relying on Artificial Intelligence family support.

Mobile financial services may  or may not necessarily link directly to your bank account but still give all working of bank account and much more on top. Previously, recharging a prepaid mobile number meant adding more airtime but now we are able to add money to it, keep our credit cards, loyalty point coupons, access our bank accounts and use it like our ordinary wallet for payments. Innovations in mobile money have made a drastic change in the way people pay for goods and services.

Introduction – A very interesting fact in the mobile financial industry is we usually receive funds once or twice a month as part of salary or fee but spending is done at least thrice a day, sometimes over 5 times. This method of spending is known as micro-payment/micro-spending. Putting in numbers, this can go into billions of dollars; an easy example: if we start charging 1 cent per transaction as commission for micro-payments through NFC (the stored value card technology) for food, drinks, snacks, petrol, tolls, souvenirs or any similar purchase each one of us spend minimum $5 a day (assumed at 40% of world population) then the total commission earnings will be to the tune of $4.3 billion per month.

This market has clearly not been explored that well and this also goes straight into Mobile Money Market as potential plug. A lot happens around us every second and especially in Financial Technology, Banking and Information Services Domain. In the same way, professionally we see a lot of changes and updates around the industry what we belong to.

Main Story – The main drivers behind the success of mobile money are the explosive growth in the number of ‎mobile devices and the fall in the cost of computing power, which have lowered the barriers to ‎new entrants in this field. Mobile money (m-money) is quite versatile and can support a variety ‎of services, in particular, person to person (P2P) money transfers, which are of significant value ‎for emerging economies. The other key driver for this is the inaccessibility of banking services to the general populace mainly due to poor infrastructure and lack of trust in local banks by country fellowmen and companies.

Mobile Payments will be 64 billion USD market by 2019 as World is running to get their bite of share from Payment cake including Apple, Microsoft, Facebook and many many other BIG players. Though this sounds very interesting and exciting but before we start dreaming any thing beyond its very important and critical to deliberate in details about pros and cons it brings. World wide development in Financial Technology sector is happening almost every day and “Change” is the only constant factor or critical stake holder of this industry.

Can we dream of guarding an innovation department or powerhouse lab is a smart setup without inbuilt component of artificial intelligence is like an effort of joining blocks without reference of previous block

Why cant you and me get some small dust out of it. NFC is use since ages but never gorton attraction and attention we all know technically NFC is a wireless communication technology that permits data transfer over distances of up to 10 cm based on the ISO/IEC 18092 standard. Based on Radio Frequency Identification (RFID) technology, it has been used in various industries including retail, automobile, medical, transportation and manufacturing.

The idea of storytelling can be fascinating; we can talk about these gloomy technologies and services with our heart out but can we also do with mind to take an idea or an incident, and turn it into a story. For instance; when we talk of how we our self felt when we made payment what all information was shared in open but do we know much information got exchanged in secret may be not. Data Science is stronger day by day from the beginning so that a flow is maintained. Artificial intelligence and machine learning like buzz words are entering into our life almost on daily basis.

The primary uses of NFC are

• Connect electronic devices, such as wireless components in a home office system or a headset with a mobile phone.

• Access digital content, using a wireless device such as a cell phone to read a “smart” poster embedded with an RFID tag.

• Make contactless transactions, including those for payment, access and ticketing.

(Source Google) Banks will certainly have to judge whether the massive investment they could make, in order to challenge the spreading popularity of payment systems such as PayPal, will be worthwhile, given that PayPal has gained ‘first mover’ advantage and that as highly-regulated financial service companies with duties to both national and continental authorities, they have to abide by stricter rules and security protocols. Blockchain for now remains out of scope.

They must also judge whether their customers will move with them into a new more agile, flexible and electronic future, or whether a majority of people actively prefer the new, low cost (or free) services that have sprung up as part of the digital revolution. Banks, for their part, will continue to work hard to convince customers that they have their interests at heart and are introducing new payment systems in order to make their lives easier and save them money, while maintaining their security.

The main drivers behind the success of mobile money are the explosive growth in the number of mobile devices and the fall in the cost of computing power, which have lowered the barriers to new entrants in this field. Mobile money (m-money) is quite versatile and can support a variety of services, in particular, person to person (P2P) money transfers, which are of significant value for emerging economies.

Broadly speaking, m-money refers to financial transactions and services that can be carried out using a mobile device such as a mobile phone or tablet. These financial transactions and services are sometimes referred to as mobile financial services and may or may not be linked directly to a bank account. NFC interface for payments works much better in  microservices architecture. The idea is to split application into a set of smaller, interconnected services instead of building a single monolithic application.

The year 2012 was turned out to be a very busy year for mobile money, with a number of articles in the news and companies like Starbucks announcing their mobile money plans each week. The terms “m-money”, “mobile financial services” and “e-money” are used quite often in technical reports and in the media. Each microservice is a small application that has its own hexagonal architecture consisting of business logic along with various adapters.

Sign-tIn conclusion, the time has now come for banks and other entities with an interest in financial service provision, to step up as one single team, exploit technology and leverage on existing MNO infrastructure to acquire customers, enrich use cases, lower costs and increase revenue especially in markets where regulators (such as reserve banks) play a dominant role, controlling almost everything in the financial sector and are averse to allowing MNOs to start opening banking branches in the absence of a banking license.

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Posted by V Sharma

Specialised in Financial Technology(FinTech), Artificial Intelligence for Fintech. Mobile Financial Services (Cross Border Remittances, Mobile Money, Mobile Banking, Mobile Payments), Data Science, IT Service Management, Machine Learning, Neural Networks and Deep Learning techniques in FinTech. Mobile Data and Billing & Prepaid Charging Services (IN, OCS & CVBS) with over 15 years experience. Led start ups & new business units successfully at local and international levels with Hands-on Engineering & Business Strategy.

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