Mobile Money as a Catalyst for Small Business Growth
Mita Srinivasan
10X Technology

Mobile Money as a Catalyst for Small Business Growth

Mobile money is revolutionizing the financial landscape for small businesses in the UAE. It offers a secure, efficient, and affordable way to receive and manage finances, ultimately accelerating growth and innovation. In an exclusive article to SME10x, Eric Karobia, CEO of Whizpay Technology, shares his reasons why.

Secure mobile payment solutions lay the foundation for trust between small business owners and their customers by offering a platform that is immediate, transparent, and capable of providing instant gratification. This immediacy in transactions is critical for building confidence among users, assuring them that their financial dealings are processed swiftly and securely.

Building Trust and Transparency

Mobile money technology allows small businesses in the UAE to bypass traditional banking barriers, offering instant access to financial services, significantly lowering operational costs and enabling scalability. With these solutions, businesses can receive and manage money electronically, eliminating the hassle around physical cash handling. This immediate access to funds enhances liquidity, enabling businesses to invest in growth initiatives without delay. By facilitating immediate and transparent transactions, it allows businesses to operate more efficiently and respond to market demands swiftly. This agility is crucial for small businesses aiming to scale up and expand their market presence.

Financial Inclusion

Mobile money stimulates economic growth by increasing financial inclusion, enabling small businesses and entrepreneurs to participate more actively in the economy. This participation often leads to increased job creation and higher income levels within the community. By providing efficient ways for small businesses to receive and manage money, mobile money technology empowers entrepreneurs to establish and grow their ventures with ease. Whizmo, for example, has been designed to allow individuals to set up business accounts, separating personal and business finances, thereby enhancing financial management and accountability. This enables entrepreneurs to invest in their businesses more strategically, whether it's purchasing inventory, expanding operations, or investing in marketing efforts.

Fostering Efficiency

Moreover, mobile money facilitates seamless transactions between businesses and their suppliers or customers, eliminating barriers such as geographical limitations or the need for physical cash handling. This fosters a conducive environment for business innovation, as entrepreneurs can focus more on developing new products or services rather than worrying about logistical or financial constraints. Additionally, by closing the loop between suppliers, retailers, and financial institutions, mobile money solutions optimize value chains, leading to increased efficiency and productivity across the local economy.

Social and Economic Growth

By reducing transaction costs and increasing transaction speed, mobile money services allow small businesses to operate more efficiently, fostering an environment conducive to innovation and competitive differentiation. On the other hand, mobile money platforms are revolutionizing the financial landscape for small businesses, especially those historically marginalized by traditional banking systems. These platforms offer a lifeline to small businesses and even individual businesses run by housewives and freelancers, who might face barriers in proving their business legitimacy through conventional means.

Through simple yet secure technology, these platforms facilitate safe money collection, addressing one of the primary concerns of entrepreneurs about conducting business online. The ability to quickly receive payments and immediately reinvest in supplies or services without the need for complex banking processes is a game-changer. It allows these business owners to maintain fluidity in their operations, catering to customer demands promptly.

Unbanked Businesses and Freelancers

By allowing these individuals to create business accounts without a trade license, mobile money platforms acknowledge and legitimize their operations, enabling them to separate personal finances from business transactions. This distinction is crucial for engaging in professional activities and being recognized as a valid business entity by other parties. For women business owners, who often juggle household responsibilities with entrepreneurial ventures, mobile money solutions provide an invaluable tool for financial empowerment. Furthermore, mobile money platforms cater to the needs of freelancers who contribute to the economy without being tethered to a specific location. By enabling these individuals to receive payments for their services across geographical boundaries, mobile money solutions break down barriers to economic participation.

By seamlessly integrating financial transactions into the fabric of social interactions, fintech companies can simplify the user experience, making financial services as effortless as sending a message. This paradigm shift holds promise for reaching previously untapped segments of the population, thereby broadening the scope of financial inclusion and empowerment.

About the author

Eric Karobia is the CEO of Whizpay Technology, the operator of Whizmo, a UAE-based mobile money solution with plans for expansion in the Middle East and Africa. He is a seasoned industry expert with over two decades of experience in the financial services and telco sectors.