A Financial Analysis of Mobile Money Services

With limited reporting by mobile network operators (“MNOs”) on the financial performance of mobile money businesses, the paper develops a financial reporting framework to indentify (and quantify) operating costs associated with delivering mobile financial services to unbanked populations in emerging markets. The framework is based on a review of relevant literature and an analysis of the financial reporting of conventional money transfer businesses.Mobile money, M-PESA, financial analysis, mobile operators.

A Mobile Money Solution for Illiterate Users

Existing mobile money platforms have text based interfaces and target literate people. Illiterate people, without the assistance of literate individuals, cannot use such platforms. Applying user-centered requirements gathered in an Ethiopian context, this paper presents the design and development of a mobile money solution that targets illiterate people. Particular emphasis is given to how illiterate users deal with cash money in their everyday life and how such practices can be mapped into financial technology design. Given the ubiquity of mobile telephony in Africa, our solution is based on the widely available, relatively inexpensive and open source Android mobile web platform. The proposed system enables illiterate individuals to count money bills, while providing the facility to accept and make payments. In so doing, we provide an example of how a pervasive technology such as smartphones can empower a hitherto often neglected user category of illiterate users

Mobile money system design for illiterate users in rural Ethiopia

Current mobile money systems provide users with hierarchical user interface and represent money as a positive rational numbers of the form 1, 3, 4.87.N. However, research indicates that rural communities that cannot read and write have a challenge entering such numbers in to mobile money system. Navigating through hierarchical text menu is also difficult to illiterate individuals. The present study uses concepts like memory placeholders, dragging & dropping; swiping, temporary holding space, and frequency counter and proposed a system that consists of three layers. The first layer denotes user interface and uses photos of currency notes, second layer is a placeholder memory that keep record of the frequency of currency bill, and the last layer keeps record of the total digital money in the system. We believe that the proposed system enables illiterate to identify currency notes while making payments and receiving payments, count digital money while making payments and or receiving payments during transaction

Towards a digital money structure for illiterate users

In developing countries, although money is becoming digital in the form of mobile money, it is not easily used by millions of illiterate users in their everyday transactions. Digitization of material money thus poses a challenge to many users. Existing mobile money systems and platforms represent money in terms of simple numbers, like 13, 50, 0.78, 23.64, 80 etc. This way of money representation is almost unusable by illiterate users, unless they depend on others' help. The literature has overlooked the different metadata inscribed on material money (like icons or images, colour, security means, and serial numbers etc). However, these metadata enable illiterate users to identify different currency notes. The material properties of money bills also enable illiterates do simple maths like addition, subtraction, division, and counting. However, current mobile money solutions have not considered money bill's metadata. Such absence of metadata made money bill identification and transactions difficult for illiterates. The work described in this paper uses the theory of digital objects and theory of non-material technological objects and presents a theoretical presentation for the structure of digital money, to be used in digital ecosystem

Mobile Money: Implications for Emerging Markets

Developing countries lack effective infrastructure: transportation, telecommunications, financial systems, etc. The positive economic impact of the improved telecommunications infrastructure has been demonstrated. The ability of microfinance has been shown to stimulate and enhance economic activity. Now a hybrid of the technologies has begun to emerge: mobile money. The ubiquity of cell phone service, coupled with the notion of microfinance offers the possibility of service in remote areas of a country where it would be otherwise economically unsustainable to provide banking services. Mobile money has all of the attributes of money including store of value and medium of exchange. This paper addresses the economics and policy issues of mobile money: What are the economics of mobile money? What policy issues does it raise? Is it a threat to the traditional banking system? How should it be regulated? What can we learn from the microfinance literature? Do we have empirical evidence of its impact on growth and development?Competition, economic dynamics, neoclassical economics, pricing policy, regulation.

A note on macro-financial implications of mobile money schemes

Across the world mobile money schemes are being launched. In such schemes financial service providers interact with clients via mobile phones or other mobile devices such as tablets. Service offerings include payments and saving as well as basic insurance products and sometimes credit based on scoring methods that use information about the client’s payment history. The world of mobile money is still in the experimental stage. Some schemes like M-PESA in Kenya have, at least initially, been run-away successes. Some three quarters of all adults in Kenya signed up within little over four years after M-PESA was launched. Other schemes in Kenya and elsewhere have produced more modest results. Yet the promise of mobile financial services is sufficiently strong for currently over 200 mobile deployments counting just the cellphone based ones. Much experimentation is still needed to find the best business models. Hence room for such experimentation is desirable. At the same time policymakers and regulators need to be clear about possible ramifications of the mobile revolution for the design of financial regulation and its implementation. This note discusses several systemic issues that arise from mobile payment schemes: The impact of “e-money” on money supply, problems posed by financial distress of mobile money schemes, and the impact of mobile money schemes on money-laundering and illicit financ

M-PESA: Finding new ways to serve the unbanked in Kenya

Over the past three years, payment strategies for emerging markets have been revolutionized by the advent of a simple cell-phone-based payment service in Kenya called M-PESA (“M” for “mobile” and “pesa” for “money”). From a small-scale pilot program in 2006, M-PESA has become an outstanding success in Kenya; customer response has been unprecedented. Currently, more than 9 million Kenyans use M-PESA to perform tens of millions of transactions every month throughout the country. Although this success has led to new opportunities, it has also brought about many unforeseen challenges.M-PESA, Mobile Phone, rural areas, rural banking, safe money transfers, small-scale pilot programs,

Standardized Payment Procedures as Key Enabling Factor for Mobile Commerce

Companies are not going to invest into the development of innovative applications or services unless these can be charged for appropriately. Thus, the existence of standardized and widely accepted mobile payment procedures is crucial for successful business-to-customer mobile commerce. In this paper we reflect on the acceptance of mobile payment and examine the characteristics of current mobile payment procedures. The outcomes of the paper are a categorization of current mobile payment procedures with strategic, participation and operational criteria and, based on these results, the derivation of the five mobile payment standard types prepaid, mobile money, conventional settlement, premium rate number and dual-card. Finally, a prospect is given to possible further development of mobile payment procedures in the direction of an integrative universal mobile payment system (UMPS).