These guidelines have identified two models for the implementation of mobile money services namely. And it can be done any time day or night from your mobile phone. Based on these examples and the assessment of the mobile money market, section ix provides recommendations to implementers and donors on how both can properly. We will explore, in this paper, the terrain of mobile money and payments technology. This is a congressional subcommittee report authored by congressman wright patman. A pdf document is an exact replica of the original document, whether its a wordprocessing or text file, graphical drawing, photo, map, or even video. The use of a mobile phone in order to transfer funds between banks or accounts, deposit or withdraw funds, or pay bills. Mobile money assessment and contracting guide cash learning. Before sending funds to a mobile money wallet, please check with your recipient to determine the correct number. How to build mobile money transfer system like mpesa. The service is available to both mobile and non mobile.
Development implications of mobile money richard l. Its sometimes referred to as a mobile wallet or by the name of a specific service such as mpesa, ecocash, gcash, tigo pesa and many more. Why mobile money is popular in africa, but not in the us. Instead of paying with cash, cheque, or credit cards, a consumer can use a mobile to pay for a wide range of services and digital or hard goods. You can also classify mobile banking based on the nature of the service. Low levels of financial inclusion represent a barrier to socioeconomic development in developing countries. When health care organizations can receive payments more quickly and more transparently, they. Mpesa provides both banked and unbanked individuals with access to money transactions at affordable. Judo payments is europes only mobile first card payments company for apps and mobile web. The chart below summarizes these various types of mobile banking. Cash withdrawals can also be carried out at authorised agents. Why mobile money transformed kenya, but failed to take off.
Mobile money services design and development for financial. Understanding money means understanding how much money you have and where it goes. Mobile money is a service that stores funds in a secure electronic account, linked to a mobile phone number. Field 1 this paper is based on presentations by the author at the macroeconomics of mobile money conference at columbia business school, april 2, 2010, and at the united nations commission on international trade law colloquium on electronic commerce, february 15, 2011.
Mobile money services a bank in your pocket an overview of trends and opportunities 7 their accounts and to perform transfers and payments. Mobile money s underpinning structure, with its combination of financial and telecom industry firms, and a heterogeneous regulatory landscape, is complex and unique. You could set a small goal first and then build up to saving larger amounts. Elan mobile money assessment and contracting guide 4 masteragent or aggregator an aggregator is a person or business that is responsible for recruiting new mobile money agents. A masteragent is responsible for managing the cash and e money liquidity requirements of a certain group of agents. Jan, 2012 why mobile money is popular in africa, but not in the us african countries like kenya have leapfrogged traditional banking systems by using mobile phones to store and spend money. Mobile money a payment industry revolution impacting. How mobile money works the basic services that tchotcho mobile and tcash offer are similar. The facts visually explained mobile pdf how money works. Mobile money services have been deployed in developing countries as a means of extending financial services to the unbanked, but more robust research is needed on the direct link between the use of mobile money services and easier access to finiancial services. Backend or back office the term mobile money operators use to.
Mpesa and the rise of the global mobile money market. This handbook can help you to understand money better. Mpesas impact in kenya put mobile money services on the map. It is not intended as a sales solicitation, but as an overview of how to overcome the most common financial challenges facing people today. The facts visually explained find audio pc bookstore book how money works. Why mobile money is popular in africa, but not in the us african countries like kenya have leapfrogged traditional banking systems by using mobile phones to store and spend money.
Africa is the global leader in mobile money, which has become an important component of africas financial services landscape. A primer on money 1964 explains in simple, everyday language how our monetary system works and indicates where it needs reform. How money works looks at how governments control money, how companies make money, how financial markets work, how individuals can maximize income through investments, and much more. A userfriendly guide to understanding key financial concepts, how money works takes a highly visual approach to this topic, using bold infographics with clear, jargonfree text to make finances and economics easy to understand. Enabling mobile money policies in kenya the gsmas mobile money for the unbanked mmu programme works to accelerate the growth of commercially viable mobile money services to achieve greater financial inclusion. Financial inclusion enabler itut technology watch report may 20 globally, more than 2. Mobile money international sdn bhd was established in february 2005 with paid up capital rm25 million. The cbn is responsible for defining and monitoring the mobile money systems in nigeria.
As mobile money is a similar concept to a bank account, funds held in a mobile money account are protected by local financial regulations. Two billion people remain unbanked, without access to safe, secure and affordable financial services. Summary on how money and the monetary system work english. Ifc has recognized the potential of using mobile money as a mechanism to deliver financial inclusion and, in november 2012 mobile money was formally adopted as a significant part of its access to finance work. The facts visually explained book french how money works. Mobile money is a technology that allows people to receive, store and spend money using a mobile phone.
Take payments on any mobile device in a fast, secure and simple way and create a successful mobile. The facts visually explained download android b2ff6ad845. The uk began a qe program in early 2009, after interest rates were cut to almost zero. It means being in a position to make the most of what youve got. Evidence from kenya find, read and cite all the research you need on researchgate.
Background these guidelines address mobile money issues. No matter who you are or what you earn, its easier than you think to take control of your money. Mobile money providers and partners like worldremit are required to check the identity of their users making it much harder for fraudsters and criminals to use these services illegally. The resulting guidelines on international remittances through mobile money referred to as guidelines throughout the document illustrate how the mobile money industry and its partners are collaborating to ensure that international transfers conducted through mobile money are facilitated in a safe and secure manner. This term is also used for the broader realm of electronic commerce. To pay a bill or send money to another person, the user selects the relevant service from their phones mobile money menu. Lowinterest savings accounts or accumulations with banks. In some cases, the mobile money number will be the same as the phone number, but not always.
Mobile payment also referred to as mobile money, mobile money transfer, and mobile wallet generally refer to payment services operated under financial regulation and performed from or via a mobile device. Most mobile money services allow users to purchase items in shops or online, pay bills, school fees, and topup mobile airtime. Mobile banking typically operates across all major mobile providers in the u. Bank led bank andor its consortium as lead initiator. While the event itself is offtherecord, below is the synopsis of our discussion. Mobile network operators mnos have dominated mobile money services in africa for the past decade.
Mobile money focuses on innovative mobile centric payment systems. Review of interoperability and regulations of mobile money. We are an approved e money issuer governed under the financial services act 20 and remittance provider class b under the money services business act. To understand the role banks play in providing transaction services, i study an episode from kenya where individuals use an alternative medium of exchange mpesa, where cellphone minutes take on the role of currency. Money facts 1964 169 questions and answers on money a supplement to a primer on money. Indeed, money is the lifeblood of economies around the world. How will the mobile money value chain work in practice. A case of mpesa in kilosa, morogoro by saskia hoope a dissertation submitted in partialfulfilment of the requirement for the award of the. These days, most mobile payment processing methods rely on nfc that is, nearfield communication. Research report making sense of mobile money in urban ghana. Jul 27, 2017 mobile money has also been seen as a lifeline to a number of social and economic clusters in africa, from the increasing number of agents, growing from 100,000 agents in 2011 to 1. M birr the fastest, convenient and reliable way of sending money to any where in ethiopia.
Adoption and customer activity levels, particularly how service providers drive scale. The bou has only approved mobile money operations when this is done in partnership with a supervised financial institution sfi. How money works looks at how governments control money, how companies. Leverage mobile money for government and donor payments and. Mtn mobilemoney is a cash management service available on the mobile phone or internet. Hello guys this is a simple mobile money transfer system i call it eclimoney which is incomplete, its for educational purposes.
This paper discusses the structure of the new mobile money ecosystem and the roles of its key players. Citation and commencement these guidelines may be cited as the bank of uganda mobile money guidelines, 20 and shall come into force on october 1, 20. Mobile money stores funds in a secure electronic account linked to a mobile phone number. How money works is a publication of primerica and is proudly distributed to help consumers find answers to their financial problems. We see very different patterns of financial development in respect of mobile money. Mpesa, yu and zap, among the 21 womens groups, as a tool for poverty reduction in eastern kenya. Working paper guidelines on international remittances. Keep your priorities straight the last thing you want to pass on to your kids is the feeling that money is more important than family and friends. Be sure to sign up to get invited to future salons. Furthermore, the majority of humanitarian work currently.
This service is therefore only available to people who possess a formal bank account. In a typical mobile money system, agents purchase efloat from the mobile money operator by delivering physical cash to the operator. The effects of qe depends on what sellers do with the money they receive from selling assets, and what banks do with the additional liquidity they obtain. Mpesa, mtn, orange, others lead africas mobile money. Transactionbased services, such as a funds transfer or a bill payment, involve movement of funds from one source to another. The safaricom story case study case synopsis mpesa is a mobile money service that was officially launched in kenya, in march 2007, by safaricom part of the vodafone group, the local kenyan leading mobile phone operator. Jun 03, 20 at the recent london technology salon, we debated how mobile money can improve development outcomes for the unbanked. Enabling mobile money policies in kenya fostering a digital financial revolution.
It is mainly about facilitating money transfer for the ghanaian market. This comparative study of existing mobile money platforms and regulations in eac contributes to our pool of. This gives you an idea of how much you need to save and it helps keep you focused on the end result, particularly when youre tempted to spend. Although much work remains to be done in closing the mobile money gender gap, there is evidence from the 2017 global findex that the mobile money gender gap has narrowed in 17 countries in. Hundreds of terms are defined, along with the essential basics of financial systems, from the definition of a bond to using cryptocurrencies, managing debt. Its mobile banking, or mbanking, which enables mobile phone users to access basic financial services even when they are miles away from their nearest branch or home computer. Mobile money service providers mmsp are required to hold, in an escrow account in their partner sfi, the equivalent of all the mobile money that has been issued to their customers and agents. How mobile money improves development outcomes for the unbanked.
Mobile text and alert is the simplest, allowing the user to transfer funds or access account information via text message. And it can be password protected so that access to features like editing and printing are restricted source. Mobile money started as a payment continue reading why mobile money. Mobile banking is a financial service often available in developed countries, but not in most. In some cases the wallet number will be the same as the phone number, but not always they can be different. Then, when customers wish to cashin, they give the agent physical cash, and the agent in turn transfers a corresponding amount of efloat from their account to the customers account. More recently, fintechs have established a solid footing in the market. The facts visually explained tpb free torrent how money works. When two nfcenabled devices are in range, they can transfer data such as payment information from one to the other. Enabling mobile money policies in kenya fostering a.
Mobile money is an evolving sector both in volume and in economic impact especially in the. Money cant buy happiness or love, but learning how to manage money wisely will enable your kids to avoid many of the same money. Pdf this paper discusses the structure of the new mobile money ecosystem. This articles deals with the question, where money originates and why the global monetary system is in an essential crisis. The gsma mobile money programme is working with mobile operators and industry stakeholders to create a robust mobile money ecosystem, which will increase the relevancy and utility of these services, and ensure their sustainability. Although starbucks mobile money can only be used at starbucks points of sale, and involves only small transactions, 7.
In addition, it sets the basis for the regulation of services offered at different levels and by the participants. Mobile enabled persontoperson payments, or mobile money transfer services mmt, are experiencing rapid adoption in many markets, in response to steady growth in remittances, the worldwide ubiquity of cell phones, and the need for an electronic p2p payment alternative to paperbased mechanisms like cash and checks. The paper is an exploratory study that investigates the structure of the ecosystem, providing a foundation for future strategic analysis of the system. This makes the starbucks mobile payment service the runaway leader in mobile payments. Mobile money is an evolving sector both in volume and in economic impact especially in the developing world. How mobile money has changed lives in kenya page 2 of 3 in addition to the benefits to households, realtime payment transactions also benefit service providers. Why mobile money transformed kenya, but failed to take off in. Get the answers to hundreds of financial questions with how money works, including how to invest for the future, how to maximise your income, how financial, isbn 9780241225998 buy the how money works. Most of the new money has been used to purchase government debt. What is more, the average fee for intraafrica remittances is 25 percent.
Mobile money is a popular alternative to both cash and banks because its easy to use, secure and can used anywhere there is a mobile phone signal. You can take money from a 1% savings plan and invest it in an area that has the potential for higher returns. Haitis mobile money landscape the beginnings of mobile money on june 10, 2010, the bill and melinda gates. According to the gsma 1 website, as of september 20, there are 192 live mobile money operations in the world, and a further 109 in. Primerica believes the ultimate key to financial success is knowledge.
Following a brief introduction to mobile money and interoperability, we present an overview of the status of mobile money in the 46 selected countries. Mobile money services started in kenya in 2007 through mpesa m for. Pdf on may 10, 2017, tite yokossi and others published mobile money and economic activity. The service is available to both mobile and non mobile users. Most people and small businesses in emerging economies today do not fully participate in the formal financial system. Mobile money started as a payment continue reading why mobile money transformed kenya, but failed to. Summary on how money and the monetary system work english even though almost everybody uses money on a daily basis, only few people know how the monetary system itself works.
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