Compared to mobile money, credit cards and debit cards have had little to no penetration in most developing nations both in Africa and the Middle East. This is mainly due to the restrictive nature of financial institutions such as commercial banks especially when consumers from the lower end of the market tries to use some of their services.
Long story short, banks could not take on the larger informal sectors and the low-income population that forms the bulk of most developing nation’s population. Thus, telecoms have access even to the remotest places in developing countries like Kenya came up with a revolutionary financial product dubbed mobile money.
Mobile money services allowed the low-income and informal sector to send and receive money, pay their utility bills and with time they became a big success. More than credit cards, debit cards or any of the conventional services offered by banks could ever be within the low-income market.
Kenya is indeed the poster child for mobile money success in developing nation, through Safaricom’s M-Pesa services. The Kenyan government wants to use the success of mobile money to deploy yet another innovative …read more
Read more here:: Kenyans To Buy Government Bonds Exclusively Via Mobile Money