Mobile Banking: The Impact Of M-Pesa In Kenya
M-Pesa is a mobile phone based money transfer system in Kenya which grew at a blistering pace following its inception in 2007. The authors examine how M-Pesa is used as well as its economic impacts. Analyzing data from two waves of individual data on financial access in Kenya, they find that increased use of M-Pesa lowers the propensity of people to use informal savings mechanisms such as ROSCAS, but raises the probability of their being banked. Using aggregate data, they calculate the velocity of M-Pesa at between 11.0 and 14.6 person-to-person transfers per month.