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So these companies act as a kind of payment bank in this capacity.

• mhogomchungu 11y ago
  They act like traditional banks in a sense that you can have them hold your money for you and some give out interest rates!!!. Their biggest difference with a traditional bank is that their "bank" accounts are tied to phone numbers. Once they have your money,you can do money transactions more or less the same way you do with a debit/credit card. You can also have your "bank" accounts on these companies tied to a "bank" account from a traditional bank and you can move your money back and forth between them.