Mobile Money Tipsheet: Common Myths about Mobile Money

This brief debunks myths regarding the use of mobile money with respect to security, agents, fees, expense, and utility. It provides information and facts related to mobile money based on the Bangladesh’s banks regulations, mSTAR case studies, and microfinance services providers’ products and services. The brief is primarily intended to assist USAID implementing partners in Bangladesh to effectively use mobile money services. Key misconceptions highlighted in the brief include:

• Mobile money is not secure;
• Mobile money agents can run away with the customer’s money or overcharge;
• Transaction fees for using mobile money are too high for organizations and beneficiaries;
• Customers need to have a bank account in order to use mobile money;
• No interest is earned by saving money in a mobile wallet compared to a bank account;
• Daily limits for mobile money transactions are way too low to meet the requirements of an organization;
• Mobile money accounts become dormant if there is no transaction in a certain period of time, and once it is dormant the process for activating the account is cumbersome;
• Mobile money accounts are not a regular bank account and can therefore be easily taken advantage of for money laundering.