What is mobile money in economics?
Mobile money is a recent innovation that provides financial transaction services via mobile phone, including to the unbanked global poor. The evidence convincingly suggests that mobile money fosters risk-sharing, but direct evidence of the promotion of welfare and saving is still mostly rather less robust.
What is mobile money example?
Simply put, electronic money or e-money is the electronic alternative to cash. Examples include pre-paid cards, electronic purses, such as M-PESA in Kenya, or web-based services, such as PayPal. As such, e-money can serve an umbrella term for a number of more specific electronic value products and services.
What is mobile money and how does it work?
As per the IMF’s Financial Access Survey, mobile money is a pay-as-you-go digital medium of exchange and store of value using mobile money accounts, facilitated by a network of mobile money agents.
What is the role of mobile money?
Mobile money is a way to store and manage money in an account linked to a mobile phone, similar to a bank account. Mobile money users can send money to other people, pay bills, and purchase many things, including mobile airtime. Airtime (also known as mobile recharge) is used to make phone calls, send SMS, or use data.
How does mobile money make money?
The agent earns commission from the deposit, withdrawal, buying airtime and paying bills for the customers. The commission of agents reduced significantly after the introduction of the one percent tax on mobile money withdrawals in July 2018.
What are the two uses of mobile money?
Mobile money systems were initially dominated by domestic money transfers, but have expanded into a broader payments platform for utility bills, rent, taxes, school fees, and retail payments.
Who invented mobile money?
Emmanuel Tumusiime-Mutebile
Emmanuel Tumusiime-Mutebile: The development in mobile banking in Uganda.
What is a mobile money agent?
The mobile money agent is the provider’s retail arm, supporting cash-in/cash-out transactions as well as person-to-person fund transfers, mobile phone airtime purchases, and bill payments. For each transaction, the provider pays the agent a commission, typically a percentage of the transaction amount.
Who is the founder of mobile money?
Dr. Nick Hughes
The FOUNDER of MOBILE MONEY (M-Pesa) Dr. Nick Hughes will deliver a keynote speech at the third Digital Impact Awards Africa (a #HiPipo Production) come Wednesday 17, August 2016 at the Kampala Serena Hotel. Dr. Nick Hughes is also the co-founder of M-KOPA and leads development of M-KOPA new products and new market.