M-banking allows users to connect remotely to banking services easily and quickly with mobile devices. M-banking allows consumers access to banking activities services 24 hours a day using their mobile phones without going to physical bank locations or a computer access to the Internet. Consumers can access anytime anywhere banking services such as, (a) access to account information,
(b) mini-statements and checking of account history,
(c) monitoring of term deposits and loan statements,
(d) mutual funds and equity statements,
(e) insurance policy and pension management,
(f), portfolio management services including real-time stock quotes,
(g) alerts on accounts’ activities, etc.
The Nokia Research Center asserted that most micro-entrepreneurs in Africa used banking activities with their mobile phones to secure business deals money and to bring financial services reaching billions of people in the developing world. The fact that m-banking allows access to financial services anywhere anytime can be attractive to consumers. Compared to traditional financial channels such as ATMs, Internet banking, and phone banking; m-banking added ubiquity, mobility, and flexibility.
Simplicity and Usability: The m-payment application must be user-friendly with little or no learning curve to the customer. The customer must also be able to personalize the application to suit his or her convenience.
Universality: M-payments service must provide for transactions between one customer to another customer (C2C), or from a business to a customer (B2C) or between businesses (B2B). The coverage should include domestic, regional and global environments. Payments must be possible in terms of both low-value micro-payments and high-value macro payments.
Interoperability: Development should be based on standards and open technologies that allow one implemented system to interact with other systems.
Security, Privacy, and Trust: A customer must be able to trust a mobile payment application provider that his or her credit or debit card information may not be misused. Secondly, when these transactions become recorded customer privacy should not be lost in the sense that the credit histories and spending patterns of the customer should not be openly available for public scrutiny. Mobile payments have to be as anonymous as cash transactions. Third, the system should be foolproof, resistant to attacks from hackers and terrorists. This may be provided using public key infrastructure security, biometrics and passwords integrated into the mobile payment solution architectures.
Cost: The m-payments should not be costlier than existing payment mechanisms to the extent possible. A m-payment solution should compete with other modes of payment in terms of cost and convenience.
Speed: The speed at which m-payments are executed must be acceptable to customers and merchants.
Cross border payments: To become widely accepted the m-payment application must be available globally, word-wide