Fighting Poverty, Profitably: Transforming the Economics of Payments to Build Sustainable, Inclusive Financial Systems

The Gates Foundation's Financial Services for the Poor program (FSP) believes that effective financial services are paramount in the fight against poverty. Nonetheless, today more than 2 billion people live outside the formal financial sector. Increasing their access to high quality, affordable financial services will accelerate the well-being of households, communities, and economies in the developing world. One of the most promising ways to deliver these financial services to the poor -- profitably and at scale -- is by using digital payment platforms.These are the conclusions we have reached as the result of extensive research in pursuit of one of the Foundation's primary missions: to give the world's poorest people the chance to lift themselves out of hunger and extreme poverty.FSP conducted this research because we believe that there is a gap in the fact base and understanding of how payment systems can extend digital services to low income consumers in developing markets. This is a complex topic, with fragmented information and a high degree of country-by-country variability. A complete view across the entire payment system has been missing, limiting how system providers, policy makers, and regulators (groups we refer to collectively as financial inclusion stakeholders) evaluate decisions and take actions. With a holistic view of the payment system, we believe that interventions can have higher impact, and stakeholders can better understand and address the ripple effects that changes to one part of the system can have. In this report, we focus on the economics of payment systems to understand how they can be transformed to serve poor people in a way that is profitable and sustainable in aggregate

Social network market: Storytelling on a web 2.0 original literature site

This article looks at a Chinese Web 2.0 original literature site, Qidian, in order to show the coevolution of market and non-market initiatives. The analytic framework of social network markets (Potts et al., 2008) is employed to analyse the motivations of publishing original literature works online and to understand the support mechanisms of the site, which encourage readers’ willingness to pay for user-generated content. The co-existence of socio-cultural and commercial economies and their impact on the successful business model of the site are illustrated in this case. This article extends the concept of social network markets by proposing the existence of a ripple effect of social network markets through convergence between PC and mobile internet, traditional and internet publishing, and between publishing and other cultural industries. It also examines the side effects of social network markets, and the role of market and non-market strategies in addressing the issues

The Impact Of Technology Trust On The Acceptance Of Mobile Banking Technology Within Nigeria

With advancement in the use of information technology seen as a key factor in economic development, developed countries are increasingly reviewing traditional systems, in various sectors such as education, health, transport and finance, and identifying how they may be improved or replaced with automated systems. In this study, the authors examine the role of technology trust in the acceptance of mobile banking in Nigeria as the country attempts to transition into a cashless economy. For Nigeria, like many other countries, its economic growth is linked, at least in part, to its improvement in information technology infrastructure, as well as establishing secure, convenient and reliable payments systems. Utilising the Technology Acceptance Model, this study investigates causal relationships between technology trust and other factors influencing user’s intention to adopt technology; focusing on the impact of seven factors contributing to technology trust. Data from 1725 respondents was analysed using confirmatory factor analysis and the results showed that confidentiality, integrity, authentication, access control, best business practices and non-repudiation significantly influenced technology trust. Technology trust showed a direct significant influence on perceived ease of use and usefulness, a direct influence on intention to use as well as an indirect influence on intention to use through its impact on perceived usefulness and perceived ease of use. Furthermore, perceived ease of use and perceived usefulness showed significant influence on consumer’s intention to adopt the technology. With mobile banking being a key driver of Nigeria’s cashless economy goals, this study provides quantitative knowledge regarding technology trust and adoption behaviour in Nigeria as well as significant insight on areas where policy makers and mobile banking vendors can focus strategies engineered to improve trust in mobile banking and increase user adoption of their technology

Cell me the money: unlocking the value in the mobile payment ecosystem

This report examines the challenges and benefits of mobile commerce in the United States. The report is based on a survey of senior executives from the mobile payment value chain. Survey results shed light on the key barriers that have traditionally challenged the mobile payment market in the United States, including the lack of revenue-sharing agreements, a dearth of consumer knowledge, low levels of demand and competing platforms in a fragmented market. Getting ahead of the curve will require companies to develop mutually beneficial business models and take advantage of further innovations made on the mobile platform. Ultimately, mobile carriers and financial institutions must come to the table and sacrifice in the short-term to create an opportunity to win big down the road

Management of e-technology in China

"e" technology is bringing about many challenges for companies, in particular for their managers. This concerns a vast range of business processes in many sectors of the economy and in nearly every country of the world. In rapidly industrializing China, companies and other organizations are actively finding their way by adapting, developing and exploiting new e-technologies. The paper's focus is the identification of the management issues in implementing e-technology in China. The paper reports on research into difficulties of establishing and operating e-business in China. In particular, it discusses management related to e-technology sharing and application. A brief review of literature is followed by the analysis of three recent case studies: an international IT services alliance, a financial services provider and an international manufacturing joint venture. All case companies are applying e-technology in China, but the role of e-technology differs in the three cases: adding a service line to the existing business processes; developing a new business process; and increasing efficiency and effectiveness in business processes. The conclusions present the emerging management issues: cooperation is a key asset in networking; the choice of business models plays an important role; adequate management attention for details such as a training program is require

A Comparison of Information Technology Mediated Customer Services Between the U.S. and China

Information technology mediated customer service is a reality of the 21st century. More and more companies have moved their customer services from in store and in person to online through computer or mobile devices. Using 442 responses collected from one USA university (234 responses) and two Chinese universities (208 responses), the study investigates customer preferences over two service delivery models (either in store or online) on five types of purchasing (retail, eating-out, banking, travel and entertainment) and their perception difference in customer service quality between those two delivery models in the U.S. and China. The results show that the majority of the U.S. and Chinese students prefer in-store and in person for eating out and prefer computer/mobile devices for ordering tickets for travel and entertainment. In addition, more than half of the U.S. students prefer in person services for retail and banking, and this number reduces to 40% for Chinese students. In most customer service quality measurements, the results also show that Chinese students give higher ratings for ordering through a computer/mobile device than ordering in store, indicating ordering through computer/mobile devices has become more acceptable in China and has been perceived as having better customer services quality than in-store ordering

Mobile banking and financial inclusion: The regulatory lessons

Mobile banking is growing at a remarkable speed around the world. In the process it is creating considerable uncertainty about the appropriate regulatory response to this newly emerging service. This paper sets out a framework for considering the design of regulation of mobile banking. Since it lies at the interface between financial services and telecoms, mobile banking also raises competition policy and interoperability issues that are discussed in the paper. Finally, by unbundling payments services into its component parts, mobile banking provides important lessons for the design of financial regulation more generally in developed as well as developing economies. --Banking,Regulation,Microfinance,Payments System,Mobile Money

Business Models for e-Health: Evidence from Ten Case Studies

An increasingly aging population and spiraling healthcare costs have made the search for financially viable healthcare models an imperative of this century. The careful and creative application of information technology can play a significant role in meeting that challenge. Valuable lessons can be learned from an analysis of ten innovative telemedicine and e-health initiatives. Having proven their effectiveness in addressing a variety of medical needs, they have progressed beyond small-scale implementations to become an established part of healthcare delivery systems around the world

Cooperation for Innovation in Payment Systems: The Case of Mobile Payments

In this paper, we provide a definition of mobile payments and we analyze the markets that could be targeted by mobile payment service providers, both in developed and in developing countries. Focusing on the case of developed countries, we introduce five cooperation models that have emerged or could emerge between banks, mobile network operators, and payment systems, for the development of this payment method.mobile payments; payment systems; mobile banking; mobile commerce.

An examination of mobile banking and mobile payments: building adoption as experience goods?

This paper examines consumer adoption of mobile banking and mobile payments using the experience goods and learning by doing constructs as a framework to better understand adoption patterns in the United States and how these may differ in other world markets. Consumer experience and familiarity with mobile devices is considered along with three relatively new communication technologies – SMS text messaging, wireless Internet access, and near field communication (NFC) – that are making important contributions to mobile financial services. Online banking and contactless payments — and consumers’ experience with them — are also studied as “building blocks” to mobile financial services. Furthermore, this analysis considers other factors that are affecting adoption patterns, including financial inclusion opportunities, data security problems, and coordination issues. Together, the building blocks and these other factors will influence how markets for mobile financial services develop.