Mobile Money Services (run by Mobile Money Operators [MMOs]), Microfinance Banks (MFBs) and Payment Service Banks (PSBs) are three different financial platforms under which some companies in the financial services sector operate to provide the unbanked and underbanked access to beneficial financial tools.
Separate licenses are acquired to operate under these platforms. However, due to the similar financial services companies operating under these platforms offer, the differences between them are sometimes unrecognisable. In the table below, we compare the functionalities, capabilities and restrictions of MMOs, MFBs and PSBs.
In conclusion, MMOs, MFBs and PSBs offer services that are similar but not quite the same. It is important that investors and users of services under these platforms are aware of the functions and limitations permitted and imposed by the licenses, before investing in or procuring the services of companies using these platforms.
