Role of Telecom Industry in Promoting Mobile Money Transfers and Its Customer Satisfaction in Pakistan: A Review

Abstract

Technology revolution is the biggest challenge now a days for every industry and that causes due to new innovations in the world. To meet the pace of technological shift and get benefited from its advancement is the dream of every organization and individual. Now a days provision of financial service solution to the population of remote areas through Mobile Money Transfer is due to technology. Mobile money transfer is being happened due to adoption of technology advancement by Telecom and banking industry. In few countries these two industries works together and in few doing separately to provide this financial service. Pakistan is progressing towards the adoption of latest technology and meets the international standard which is now accessible to every person belongs to different socio-economic class. This paper is based on the review of various literatures on empirical studies on mobile payment services provided by Telecom sector in Pakistan. The telecom’s customers are thrice than banking customers which is 140 million and 37 million respectively, it seems benefited to promote mobile payments through telecom sector. Hence Telecom has started provision of financial services in terms of fund transfer by using mobile networks and formulated the procedures for it. The trend of using branchless banking via mobile is increasing in Pakistan. The services of branchless banking outreached to distant areas of rural Pakistan at cheaper cost which do not required huge amount to open a single branch as the conventional banking requires. Currently the banking sector in Pakistan is just covering 12% of financial transactions so it is acceptable for the bank to adopt the alternate financial channels. The estimations shows that after every 11 minutes a person joins cellular services and telecom contributing 3% to the GDP, whereas the total revenue of telecom sector has reached to Rs 357.7billion in the year 2014. These facts pointed out the Pakistan have immense impending in mobile banking. As a result of adopting branchless less banking through telecom companies is the formal banking which is easy and manageable for the bank as well as for customers also as they don’t have to wait in the long queues for the small transaction or for paying utility bills. Besides these, the other advantages of using mobile payment are time saving, efficient, secures and error free. It is concluded that due to advancement of technology in every field of life, banking sector also acquired user-friendly technology and developed mobile money transfer services.