For the last few months, many people have mentioned Bitcoins as the new rage in banking, allowing users to transfer funds digitally, without having to even make use of a bank. Problem is, the security of someone else watching and protecting your money seems to be something people really like, as Bitcoin value has gone down quite considerably lately, even being called the world’s worst investment this year. That’s harsh, but does it mean that all foreign, digital currency is dead?
Based off reports, it doesn’t seem like it, as the African e-money known as M-Pesa has seemed to gather some steam lately, suddenly thrusting itself into the No. 1 spot of currency-killers. Much like Bitcoin, M-Pesa replaces banking for those who use the service, taking advantage of old cell phones and simple text messages for users to transfer money without the need for debit cards or tellers to family members and friends around the globe. So how much steam does M-Pesa actually have? According to reports, there are nearly 79,000 M-Pesa agents in Kenya with nearly 37,000 merchants receiving mobile payments to their phones. Those numbers translate into about $40 billion of the country’s gross domestic product.
And while the process seems simple and popular enough in foreign countries around the world, there is one small catch—the fees for cash withdrawal—which matches the average commission for using a foreign bank’s ATM in the States; about two percent. Still, with the versatility and sleekness of using the technology, it’s not entirely out of the question for M-Pesa to continue to grow and work out the kinks, as cash withdrawals and the associated fees are less necessary when using the service.
If M-Pesa makes its way to the States, it could become something that is globally accepted, so stay tuned.
Photo by Brent Stirton/Getty Images
