Mobile Wallets Vs Conventional Banking in Pakistan

Mobile wallets and conventional banking represent two distinct images of the financial services provided to the consumer.

Mobile wallets, better known as wallet banking/mobile banking, represent the current era where accessibility is of the primary concern and fintechs are new cool.

Needless to say, mobile wallets are mostly preferred by the customer who likes to have their money at their fingertips - accessible, on the go, and fast.

Conventional banking, on the other hand, still thrives as the preferred choice for the customer who believes legacy is equal to trust.

Both of these mediums exist in the financial ecosystem, catering to the needs and wants of the customers.

Contents

• Mobile Wallet Services in Pakistan
• Comparison between Mobile Wallets and Conventional Banking Systems
• Conclusion
• How is the Small World Money Transfer App different from a mobile wallet?

Mobile Wallet Services in Pakistan

Since 2021, The Islamic Republic of Pakistan has observed significant growth in the sector of E-banking.

Mobile wallets such as EasyPaisa and Jazz Cash - both have now reached their maturity stage - have become household names across all classes.

Moreover, these companies have made the somewhat traditional leaning population of Pakistan comfortable with the concept of cashless transactions.

These services have reduced the time requirement for opening bank accounts, verification of documents, and what not.

Some of the mobile wallet services which are actively working in Pakistan are as follows:

• 1. HBL Konnect.

This venture was introduced by one of the leading banks of Pakistan - Habib Bank Limited (HBL) to offer a mobile wallet solution to conduct digital transactions of all sorts, may it be bill payments or domestic and international transactions or transfers.

• 2. EasyPaisa.

EasyPaisa is a digital wallet service that was introduced by a cellular network company named Telenor. This service provides all the mobile wallet options which include cashless transactions, mobile top-ups, bill payments, and more.

• 3. JazzCash.

JazzCash is another mobile wallet provider that gives the liberty to the consumer to conduct all kinds of transactions with the touch of a few buttons.

• 4. UBL Omni.

UBL Omni has been quite successful in providing all kinds of mobile wallet services in Pakistan. The consumers of this service can easily perform all sorts of transfers and transactions (domestic, international), bill payments, and various other services through their mobile phones.

• 5. SadaPay.

SadaPay is a venture that is relatively new to the Pakistan digital wallet market. SadaPay has gained huge popularity among the youth of Pakistan due to their world-class UX and services.

The ease of making transactions, paying bills, and mobile top-ups make both services quite reliable and easy to use. They also offer foreign currency accounts which makes them one of the top mobile wallet services in Pakistan these days.

• 6. NayaPay.

Just like SadaPay, NayaPay is another venture that is quite popular amongst the young generation of Pakistan.

You can access your savings, account details, and transaction history with a tap on your smartphone.

Other features such as domestic and international transactions, bill payments, mobile top-ups, and foreign currency accounts all are accessible through the NayaPay App which can be installed on the smartphone.

Comparison between Mobile Wallets and Conventional Banking Systems

• Accessibility.

Keeping accessibility into perspective, mobile wallets are certainly the better option.. People residing in rural areas can easily open mobile wallet accounts by registering through their mobile phones. However, conventional banks also have a vast physical presence, (banks, ATMs) therefore having more accessibility in the rural and urban areas.

• Range of Services.

Conventional banking systems provide a variety of services in comparison to the mobile wallet system.

The services include savings and current accounts, different loans, fixed deposits, and opportunities to invest in various ventures.

On the other hand, mobile wallets are only limited to certain services like digital payments (bills, top-ups, peer-to-peer transfers). This, however, may not be the case for long. As more and more Pakistanis switch to mobile wallets for convenience, the wallets are introducing competitive product offerings that could give banks a run for their money, literally.

• Convenience.

Mobile wallet services offer convenience for everyday transactions. Consumers can check their balances, and make transactions through a single touch on their smartphones. The downside of this service is the presence of transaction limits which are not offered in conventional banking.

• Cost.

Keeping the cost in perspective, mobile wallet services are cost-friendly in comparison to conventional banking services.

With little to no transaction fee applicable, mobile wallet services are usually employed, especially by the youth. Conventional banking offers a variety of services, with additional costs in terms of maintenance for certain types of accounts.

• Security.

Mobile wallets often employ advanced security measures, including biometric authentication and encryption, to protect users' financial information. However, the risk of fraud could be higher if your phone gets lost or stolen. With a conventional banking system, the security measures are quite robust. Moreover, they also offer insurance coverage in case of any theft or any other foul activity. The consumers are provided with a high level of security for their funds as well.

• Promotions and Discounts.

Some digital wallet providers offer promotions, cashback rewards, and discounts for using their services, which can save users money over time. Similarly, the bank systems also provide multiple discounts and promotion offers which helps the consumers in many ways.

Conclusion

In conclusion, both mobile wallets and the traditional banking system in Pakistan have their advantages and disadvantages.

Mobile wallets offer accessibility and convenience for basic transactions, while traditional banks provide a wider range of financial services and security.

The choice between the two often depends on individual preferences, needs, and circumstances. Many individuals in Pakistan use a combination of both, depending on the type of transaction and their location.

How is the Small World Money Transfer App different from a mobile wallet?

Small World Money Transfer App offers a broader range of home remittance services that allows overseas Pakistanis to stay closer to their loved ones back home..

Small World Money Transfer App enables users to conduct essential transactions such as the comfort of viewing transaction history in one go, transferring funds all over the globe, and the convenience to chat with global support in a language of their choice.

Moreover, Small World Money Transfer App provides low-cost international transfers. whether you want to send money for loan payment, investment opportunities, savings or medical bills - Small World has you covered!

Small World is a Financial Conduct Authority (FCA)-approved money transfer service, which makes sure that your personal data and money is safe and protected using various security checks.

We are verified by Visa, Mastercard, Maestro, European Payment Institutions Federation (EPIF) and IAMTN.

We are bringing home closer to you, one transfer at a time.

Download the app now and sign up today!