A study by Tanzi (1982) undertakes estimation of demand for cash in the United States and including among the determinants, ratio of taxes to GDP as a proxy of underground economy. The result shows that increase in taxes to GDP ratio raises the demand for currency. The study conclude high taxes induce citizens to evade taxes by shifting part of their economic activities to black or grey economy. Traditional models on demand for money are motivated by different hypotheses focusing on transaction, precautionary, speculative and utility, considerations (Judd & Scadding, 1982). Whilst these models explore the demand for money using different styles and hypotheses, the ensuing implications have been analogous. All have generally shown that, the optimal stock of real money holding is inversely related to the rate of return on earning assets and positively related to the real income4.

As a result, we are seeing that several companies are investing in modern technology and have either established or are establishing stand-alone fintechs to execute on payments and financial-services opportunities. We expect this to continue at pace and contribute to the accelerating growth in e-payments. Because of their large customer bases, agent networks, and unique data, telecom companies have a natural advantage in the payments space. Banks are limited both by regulation and cost in acquiring these merchants directly, and mobile money and wallets fall short of providing solutions that are more holistic. In Africa, we have seen successful examples of banks pooling together to create technology and distri­bution platforms that support scale at a lower cost to individual banks. PesaLink, Kenya’s real-time payment rail, is an industry-led initiative cosponsored by more than 20 banks.

We estimate this model using monthly data with sample running from January 2012 to June 2019. The principal source of the data used in the estimation is the Bank of Tanzania. Necessary diagnostic tests including, descriptive statistics, unit roots tests and co-integration tests are reported in the Appendix. This paper examines recent developments in mobile phone transactions in Tanzania, the extent of its adoption by the general public and motivation for its usage. It also explores how development in mobile phone transactions has affected the demand for cash holdings including its components (denominations) using cointegration approach supplemented by survey. Check it out here https://www.daily166.com/.

When the customer creates a transaction on the ATM, a request is sent to their mobile banking app to confirm the transaction and current geolocation. The customer checks the transaction and signs it with their mobile digital signature. As soon as the locations of the ATM and the smartphone match, the transaction goes through.

Card-linked digital wallets, for instance, are a significant driver of growth in issuance and usage of cards, including virtual cards. Banks can integrate lending and other products into customer journeys and third-party platforms, radically expanding distribution and customer access. Global moves that have yet to take off at scale in Africa include “buy now, pay later” integrated into e-commerce and consumer-lending offerings embedded in wallets. Early examples, such as MTN and AFB Ghana (now Letshego) Qwikloan, KCB M-PESA loan, and Wakanow’s Pay Small Small in partnership with FCMB Bank in Nigeria are great examples of innovation in this space. Today, consumers have already moved from basic mobile money primarily offering peer-to-peer (P2P) transfers and cash in, cash out (Wallets 1.0) to wallets offering more complete financial services, including bill payments, savings, loans, and insurance (Wallets 2.0). Most prominently, Google launched a mobile wallet in September 2011, allowing users to store debit, credit and store loyalty card details on their Android-enabled handsets and make secure payments via NFC at PayPass or payWave-enabled terminals.

I do not know really what the author is talking about; commercial banks all over the world already for years provide their clients with possibilities to do all the above requested banking (p2p, p2c) services via mobile telephones and internet. Yes, lack of financial education is a barrier to improving financial inclusion. There is evidence from many countries which shows that unbanked people do not use financial accounts due to lack of trust in the provider or the product. Easy to understand financial education materials offered to the unbanked can largely improve the chances of adoption. For payment to merchants, they offer another medium for the customer which vastly reduces cash management.

Cash App stands out for its simplicity (you either pay or get paid), ease of use, and minimal fees. WorldRemit accepts most types of debit, credit, and prepaid cards issued by Visa or Mastercard. WorldRemit also accepts payment from Klarna, Trustly, POLi, Apple Pay, and more.

Facebook Pay took the award for its ease of transferring small amounts of money through a familiar platform. You can use Facebook Pay to make seamless and secure payments in select countries through Meta Messenger, WhatsApp, Portal, and Instagram. If you accidentally send money to the wrong person, you can request a return for the money you sent by mistake. If you don’t hear back or need help sending a charge request, you can contact Venmo’s support team. Cash App, owned by Square Inc., scored the highest in the low fees category because it allows users to send funds instantly via mobile app for free.