PaymentsJournal
SUBSCRIBE
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
No Result
View All Result

M-Pesa Shows Why Mobile Money Is yet to Realize Its True Potential in Africa

Joseph Walent by Joseph Walent
March 16, 2016
in Analysts Coverage
0

3D rendered close up illustration of a large group of golden Bitcoins with depth of field blur

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

The uptake and use of mobile money in Kenya has been portrayed as a proof-of-concept to bring “banking without the bank” to wide swathes of people. Coverage of the M-Pesa system done by 60 Minutes called “The Future of Money” outlines of the changes and benefits resulting from the implementation of the mobile currency system by the Kenyan mobile phone service provider Safaricom.

The consensus is that mobile money is transforming the way unbanked populations are gaining access to financial services, with Africa leading the charge. But amidst all the excitement, may we in fact be starting to see the limitations of mobile money?

The article seeks to provide a view of some of the shortcomings of the M-Pesa system as it exists today. In doing so, it reminds the reader that there is indeed significant work to extend access to financial markets for the most of our planet’s inhabitants.

Closed systems and a lack of interoperability do not help with this. Interoperability between services and countries is only just beginning to become a reality. Vahid Monadjem, chief executive of South African enterprise payments provider Nomanini, believes this has hampered the concept. The industry body GSMA’s Mobile Money Deployment Tracker finds that of 300 mobile deployments across the world, the vast majority have failed

For mobile money schemes to be effective, they must achieve a critical mass of participants and enjoy ubiquity in a compressed timeframe. This truism applies in developing economies as well as developed economies. The apparent stalling expansion of mobile payment use in the U.S. is attributable to similar market forces that have worked against replicating the M-Pesa success in other developing economies. That is to say, in many cases, the majority of the population have yet to feel incented to change their current payment behavior or have access to the technology and other resources in order to utilize mobile money schemes.

Overview by Joseph Walent, Senior Analyst, Emerging Technology Advisory Service at Mercator Advisory Group

Read the full story here

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

    Analyst Coverage, Payments Data, and News Delivered Daily

    Sign up for the PaymentsJournal Newsletter to get exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    Google Wallet Expands Features

    Google Wallet Continues to Bet on Digital with Expanded Features

    June 2, 2023
    digital value

    How Embracing Digital Value Can Help Solve the B2C Payments Conundrum

    June 1, 2023
    instant payments, real-time payments, RTP

    Banks Developing Instant Payments Products in the U.S. Should Focus on Billers to Generate New Revenue Streams  

    May 31, 2023
    Digital Wallet Use Delivers on Convenience and Security

    Digital Wallet Use Delivers on Convenience and Security

    May 30, 2023
    5 Ways to Protect Your Financial Institution from a Cyberattack

    5 Ways to Protect Your Financial Institution from a Cyberattack

    May 26, 2023
    traditional banks

    How Traditional Banks Can Modernize Without Risk

    May 25, 2023
    identity fraud

    Javelin’s Identity Fraud Study Highlights the Changing Nature of Fraud

    May 24, 2023
    SASE, security-as-a-service

    Security-as-a-Service Secures
    Distributed IT Models

    May 23, 2023

    Linkedin-in Twitter

    Advertise With Us | About Us | Terms of Use | Privacy Policy | Subscribe
    ©2023 PaymentsJournal.com

    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    Menu
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    • Industry Opinions
    • Recent News
    • Resources
    Menu
    • Industry Opinions
    • Recent News
    • Resources
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Industry Opinions
    • Faster Payments
    • News
    • Jobs
    • Events
    No Result
    View All Result

      Register to download this complimentary report from CSG Forte: