AN EVALUATION OF MOBILE MONEY SERVICES AS AN ALTERNATIVE TO THE MAINSTREAM BANKING SYSTEM IN NIGERIA

Abstract

During the recent naira scarcity experienced as a result of naira redesigning, mobile money services came to the rescue of many cash-stranded Nigerians. Mobile money service is an e-wallet service. An E-wallet is a type of electronic card which is used for transactions made online through a computer or a smartphone which is available in many countries including Nigeria and allows users to store, send, receive and borrow money using their mobile phones or smart devices. This Paper examined the evolution of this service, its incursion into the Nigerian banking system and its importance as an alternative mode of banking, especially during the recent naira scarcity. Both primary and secondary sources of law which include Statutes and relevant internet materials are employed in this discourse. This paper finds that the coming of mobile money services into the Nigerian banking space is gaining more ground than expected. The paper further recommends that more regulatory framework is needed to ensure that the confidence reposed in the mobile money service as an additional banking platform is not eroded.