Mobile Money to Bangladesh

 Participation of the world's poor in the digital economy through mobile money At one time, a special service for some people was 'mobile money' or the system of money transactions through mobile phones.

However, in the last decade, mobile money has evolved from that situation into a mainstream financial service. Through this, millions of poor and middle class families are not stuck in cash or paper money based transaction system only. Rather, they have become part of the digital economy, ensuring their inclusion in the mainstream economy. These families in low and middle income countries are getting used to digital life through mobile money. The poor and middle class in those countries are now engaging in more transactions.
Meanwhile, the Covid-19 pandemic has accelerated people's habituation to the digital world. Since the pandemic, more and more people are now opting for digital money for everyday markets and shopping, paying bills, receiving government incentives or sending money home. As a result of this growing demand, transactions through this industry will touch trillion dollars in 2021. Earlier no one could have imagined that this milestone could be reached in such a quick time. This means that about 2 million dollars were transacted every minute that year.
The journey of mobile money started in the East African country of Uganda. But this method is now providing various financial benefits based on mobile in different countries of the world. Mobile money is not limited to concepts like Peer to Peer, Cash In or Cash Out. Rather, this mode of transaction has also brought the low-income population into the financial system. Currently, mobile money is used in more than 100 countries.
Moreover, new accounts are constantly being registered in the mobile financial system. In 2021 the number of these accounts was 1.35 billion and the annual growth rate was 18%. In the same year, the number of accounts that were active for at least 30 days rose to 346 million and the number of accounts that were active for 90 days reached 518 million. More promisingly, the number of active accounts is increasing keeping pace with the number of newly registered accounts.
However, increasing the number of active accounts across the world is particularly necessary to strengthen financial inclusion. One thing to keep in mind is that many mobile accounts are registered but never used. Many accounts are also rarely used. The reasons behind this, however, vary from country to country.
Besides, there are many mobile users who know about mobile money but do not have an account. They face various problems while registering the account. Lack of digital skills, unreliable mobile networks, illiteracy, high interest in cash transactions, lack of trust, lack of useful documents to confirm identity such as ID cards and unreliable electricity system have led many to

Let's take a look at some statistics of the mobile money industry: 

 The rate of direct payment for merchant payments or purchases has been doubled. Currently, mobile money system such transactions account for 21% of total transactions, which was around 10% in the last two years.
International remittance flows increased by up to 48 percent. The main reason for this was the money sent by the immigrants. Migrants, largely spread across the globe, sent large amounts of money to their families and friends during the Covid-19 pandemic. 

Now 44% of mobile financial services providers globally offer mobile-based savings, borrowing and insurance facilities. The participation of buyers in transactions through these institutions is also high.
According to a survey, 46 percent of banks have mobile platform transaction management system, which is growing at a very fast rate. This rate has doubled between 2019 and 2021. By 2021, digital money conversion rates through mobile money agent networks have increased by 18 percent. Its value stands at 261 billion dollars. That is, the amount of these transactions per day was 715 million dollars.
Currently, due to the trend of people's interest in the digital mobile money ecosystem, more and more cash is being converted into 'e-money' or digital money. And people are not cashing out this money, rather people are using it as the main means of transaction.
In 2012, if one hundred dollars were cashed in, eighty eight dollars would be cashed out. This rate has come down to 67% in 2021, that is, if a hundred dollars were cashed in about two years ago, about $67 would have been cashed out and the rest would have remained digital. This means that mobile money users are becoming digital citizens over time. 2021 has shown us how the power and reach of mobile money can create a more inclusive world.
According to the recently published 'State of the Industry' report on mobile money, hundreds of millions of people are now able to participate in the digital economy. 

Mobile money and its socio-social benefits are being enjoyed by individuals, societies, public, private, non-profit organizations.

But more benefits are possible if the industry and its stakeholders can step up their efforts, reduce the gender disparity in mobile-based transactions and include a diverse range of buyers. At the same time, businesses must try to activate the billions of registered customers who have left their accounts unused.