Zambians no longer need to travel to banks for every financial transaction because money can be transferred, bills can be paid and goods can be purchased using a mobile phone.
These services have become an increasingly common part of everyday financial activity across the country.
Mobile money refers to the use of mobile phones to carry out financial transactions such as transferring money, paying bills, buying airtime and making payments.
Its growth has changed the way many people in Zambia handle money and conduct business.
The development of mobile financial services in Zambia dates back to the early 2000s. Celpay introduced a payment network in 2001, followed by ZANACO’s Xapit in 2008.
Mobile Transactions, which later became known as Zoona, entered the market in 2009, further expanding the ways people could send and receive money.
Today, many Zambians use services such as MTN MoMo and Airtel Money for a wide range of financial transactions.
One of the main changes brought about by mobile money is the speed and convenience with which payments can be made.
Bills can be paid using a phone without travelling to a bank or spending time waiting in a queue. Users can complete transactions from almost any location where the service is available.
Small businesses have also gained another way of receiving and making payments. A trader at Chisokone Market in Kitwe, for example, can receive money from a customer electronically without handling physical cash.
Traders can also use mobile money to pay suppliers and settle other business expenses without leaving their stalls.
The service has also created employment opportunities, particularly for young people working as mobile money agents. Many youths now operate mobile money booths in markets, shopping areas and residential communities, offering services such as deposits, withdrawals and money transfers.
Mobile money has also reduced the need for physical cash in some transactions. Customers can make electronic payments instead of exchanging notes and coins.
However, cash remains widely used, particularly among businesses and customers who prefer it or depend on it. Mobile money has therefore provided an alternative to cash rather than replacing it completely.
Transferring money between different locations has also become easier. Zambians can send money from one town to another without physically travelling to deliver it.
This has made it possible for families, businesses and individuals to move money between locations more conveniently.
However, the growth of mobile money has also brought risks, including digital financial scams. Scammers may use phone calls or messages to trick users into revealing confidential information or sending money. Users can also lose funds by entering incorrect account details and transferring money to the wrong recipient.
Safe use of mobile money is therefore important. Users should keep their PINs and other confidential information private, carefully check recipient details before confirming transactions, and avoid responding to suspicious calls or messages.
Network and technical problems remain another challenge. A transaction may fail even when a user has sufficient funds if the network or service is unavailable.
Mobile money booths may also run out of physical cash or electronic float, preventing customers from making deposits or withdrawals when they need to.
Some users also complain that fees charged by mobile network operators and financial service providers can be high, particularly for people who rely on mobile money for frequent, small-value transactions.
Despite these challenges, mobile money has changed the way financial transactions are carried out in Zambia.
It has made many payments more convenient, given businesses another way to handle transactions, created employment opportunities for agents and made it easier to transfer money between different locations.
Banks remain important, and cash continues to be widely used. However, the mobile phone has become another important tool for managing money.
Transactions that once required a journey to a bank, money transfer outlet or another physical location can, in many cases, now be completed using a phone.
By Nathan Meleki