Where we have online wallets like Paytm and freecharge which only make online transaction possible, Vodafone’s M-Pesa allows users to even withdraw cash using their phones. This technology which is already being used in Kenya is a perfect example of cashless economy . Prime Minister Narendra Modi had asserted in his first “mann ki baat” program post demonetisation.
Number of substitutes have started popping up, even while people are struggling post demonitisation to withdraw cash across the nation. Many online portals for digital wallet are coming into the market, Vodafone being one of them.
According to reports Vodafone India is coming up with a new measure by the virtue of which 8.4 million M-Pesa customers can encash their money at the designated outlets.
Mobile phones are easily accessible even to the people who do not have bank accounts. So, using M-Pesa people can easily help you pay bills, recharge phones or even transfer money.
To avail this service customers need to register at sanctioned agents. These agents can be small mobile shops or recharge shops. They will then need to deposit cash in exchange of electronic money for which they will be getting a receipt. This money can be used for several purposes including money transfer.
Once registered, money transfer can be done using a PIN number and an SMS confirming the transfer will be sent to both the parties involved in transaction. That money can be exchanged for cash from the authorized agent of that city. M-Pesa thus acts as a banking agent.
Reports suggest that 56% of the M-Pesa outlets will be set up in rural areas.