Difference Between Mobile Money and Mobile Banking

Edited by Diffzy | Updated on: April 30, 2023


Difference Between Mobile Money and Mobile Banking

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Mobile banking and mobile money have enabled an era of no-wallet shopping and purchase dreams to come true. This has set much higher standards for the quality of life of people. It is also much cheaper and less time-consuming in its services provided. It provides its clients with the utility of cashless transactions or "pay as you go" mode.

It has modernized the ways of money transfer and exchange, making it easier for both clients and the owners who sell or provide services. In this way, even large amounts can be transferred across accounts without actually carrying them, and in no time. It comes with high-security standards, but some loopholes may be possible. A good connection and primary knowledge of how to work with an application or smartphone may be the only necessary prerequisite for accessing its services.

It saves time and effort for people and makes even remote exchanges possible across the world at a cheap expense.

Mobile money vs. Mobile banking

Mobile money enables all modes of digital transactions to be made as you travel. And, the money on client requests is exchanged between the networks of partners supervised by the financial provider. It provides more instant transfers to its clients, and hence, keeping cash in your hands is no longer a necessity.

Remote transactions are made possible and less time-consuming for users who have to wait in long lines for payments. It may include paying utility bills, school bills, phone top-ups, online shopping, and many others.

Mobile banking is also similar to mobile money, but not all modes of transactions are possible with this. Instead, only personal exchanges, transfers, receiving, or paying are made possible. It is controlled by the bank itself. However, it may not be necessary to have the banks open all the time to access their services. You can access its services twenty-four hours a day with no interruption if a good internet connection is ensured. You can use a mobile application to know how much balance you have, if you have received a transfer from your friend, or not, check the deposits and other services without actually visiting the bank. The other services include updating information linked to the account, requesting a new service, canceling a previously existing one, purchasing new cards, blocking cards in case of thefts, etc. Every bank has its mobile application created which can be used by its users for a better experience requesting and accessing services.

Difference between mobile money and mobile banking in tabular form

Main parameters of comparison Mobile money Mobile banking
Requirements Only a smart phone may be a necessity A reliable internet connection, an online mobile application linked to the account, and bank account information are required.
Definition It is a digital model of transfer made by a company to its partners without the actual involvement of traditional banking systems. It makes it possible for you to pay as you travel anywhere and anytime. It is an authorized "P2P" or personalized exchange or transfer between people who control the services using mobile phone apps and is used to send and receive instant money.
Provided by The financing company manages and has control over the transfers and exchanges that take place across its network. The bank is solely responsible for its control, however, users must keep privacy codes undisclosed to ensure higher safety and prevent hacks.
Account necessity Bank account details are not required for making the transactions. Yes it is necessary for receiving, or accessing the services 
Services offered All digital modes of transactions are possible. This could include payment of utility bills, school bills, goods or commodities that are purchased online, etc. Only personal exchanges and transfers are possible. These are commonly referred to as ‘p2p’ transfers. The network is highly limited in privacy.
Basic principle  It uses a digital network between client partners to make instant transfers on requests from its users. It uses net banking as user’s process requests for money exchanges and transfers. This is mainly done via mobile applications owned by the banks themselves.



Instant and cashless transactions are possible in daily life. Persons without bank account can use this entity to send, receive or transfer money.


Remote transfers between people across the world in no time are also made possible if good connectivity is ensured. 

Disadvantages  Some advanced technical wallets may be easy to use but at the same time provide additional risks to their safety. Hence, it is necessary to follow the security guideline and ensure not disclose any privacy codes to anyone that could manipulate it. It may be possible with a poor connection, if the server is down, or if there is some technical breakdown at the bank. This could not be used by a person who does not have a bank account.

What is mobile money?

Mobile money offers its customers all types of digital transactions. It does not require your bank accounts; instead, a mobile phone may be required. The finds are transferred here between the financing company and its partners in online shopping, businesses, and so on. It provides people with no bank accounts the use of their phone as a bank account to deposit, transfer, and other services.

People can use it to pay bills for utilities or goods and commodities that they get online, add call time to their phone, pay school bills, and many other facilities. Both smartphones and basic phones may access its services. It used mobile numbers linked to its accounts, and the security was enabled by the local financial regulations.

Mobile phones usually keep a record of all transactions that take place, so safety is ensured even in cases of theft. Every transaction may require a new secret pin that may be privately sent or set by the user itself. Users can additionally set face licks or number locks to access these services.

This has ensured a higher security level for hefty transfers made across the world instantly and even remotely. Also, easy cashless transfers, avoiding the unnecessary complication of carrying money with oneself, are avoided. You can use it to make purchases online, shop, pay bills, and many more services.

Most common in countries where not everyone has a bank account. the telecom operators who are provided a license to operate financial payments are authorized to provide the services to their users.

What is mobile banking?

Mobile banking is also known as net banking as all banking services are integrated into an application that provides its client with "P2P", or personal transfers and money exchanges, possible at the fingertips. It makes it possible to check balances, and deposits, and make instant transfers and exchanges between people in different parts of the world. It has reduced the amount of effort and time that their clients must spend to make these services possible. It's all at their fingertips now. 

If you have a primary knowledge of how to use the application, you need not bother about the language requirements and availability of the bank. You can use any service whenever you want.

The list of services it provides to its clients may include:

1. Short details about the account, making sure not to disclose any information. 2. To access your other linked accounts.

3. Contact the bank staffing section.

4. Request additional services.

5. Cancel existing ones. 

4. To update or alter from one form to another. 

5. You can use it to purchase new cards if you lose old ones, 

6. To block your cards if they are stolen, and many other services.

Differences Between Mobile Money and Mobile Banking in Points

Account necessity

A bank account is not necessary in the case of mobile money; a basic phone would do the job required. It is the only prerequisite required for access to this service.

Whereas, mobile banking makes use of an application that can manipulate exchanges and transfers that can happen in one account and is usually done by linking a unique mobile phone number to an account and locking it with a password.

Hence, an account is a necessity in this case.

The basic principle of working

Mobile money facilitates its clients' pay-as-you-go through a digital medium of exchange between a network of partners that work independently of traditional banks and accounts. Here, the service is provided by the telecom providers who hold a license to enable these transfer and exchange services for their clients. The difference is that mobile money also could be used by a client without an actual bank account who could use his phone as a temporary account to send, receive or store a large amount of money. The phone that could be used for their service can be a smartphone or a basic model phone.

On the other hand, mobile banking uses mobile phone applications to access, retrieve, or transfer money and other banking services from one account to another online. It may also be possible to check deposits and balance inquiries.

Services offered

Mobile banking mainly functions for transactions and exchanges between person to person only and provides one with more personal privacy and security. It also provides many other services to update information linked to an account, and to alter the type of credit or debit cards that you use now. For example, from local cards, you could update them into international debit cards that provide wider access, and extension of their services. It could be also used to request a new service, or cancel an existing one. Also if you face some issues regarding net banking, the staff is readily available to hear about your issues, resolve them and enable a good experience working with their company. Every bank has its banking app that they control.

On the other hand, mobile money applications do not just limit themselves to money transfers, but also many other services offered to their clients. Basically, for an online purchase, booking, or paying bills while shopping.

Managed by

Mobile banking access and services remain solely within the limits and powers of bank authorities.

Whereas mobile money access is between the partners authorized by the main financial provider based on requests made by clients only. It is usually controlled by telecom providers who are provided with official licenses to enable these services for their clients.


Mobile banking requires a bank account, proper network connectivity, and a mobile application that is linked to your bank account to access its services.

In the case of a mobile wallet or mobile money, however, only smartphone access is required.


Mobile money is like an invisible wallet that provides you with the utility of paying wherever you go. Mobile banking lets you have all your bank services at your fingertips. Both these advancements prove the modernization of this new era in making cashless payments across the world.

It makes it much easier for customers to access the account at their fingertips and manipulate many services without even going to the bank. Therefore, it is less time-consuming and more efficient to use instant transfers even between people who live far away from one another.

It also makes these services very cheap, making them an easily accessible service to all. This in turn has raised the standards and quality of people's day-to-day lives. It can also be easily accessed from anywhere and whenever you want, all possible just with good network connectivity.

Also, there are no more time limits to check for the opening and closing times. It works all day and for 24 hours. Also, using these services makes hefty transfers safe and instant in reaching the recipient. Carrying bulky handbags with cash and thinking about their safety is no more a problem because of these technical services made available to us. Safety is ensured by safe end-to-end encryption and two-factor authentication, one-time passwords, and others that ensure high security while in transfer and limit its access only to its users.

These advancements have led to modernization, and cash-less transfers made possible anywhere in the world.


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"Difference Between Mobile Money and Mobile Banking." Diffzy.com, 2024. Mon. 17 Jun. 2024. <https://www.diffzy.com/article/difference-between-mobile-money-and-mobile-banking-87>.

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