The Rise and Impact of M-PESA
The cost of owning and using a cell phone has fallen dramatically, opening the door for mobile banking innovations, particularly in poor countries that generally have little in the way of traditional financial services. As a result, mobile banking seems poised to play an important role in the growth of economies.
A pioneering effort in Kenya, M-PESA, has grown to be the world’s largest mobile money service. This research brief is designed to introduce interested readers to some of the most significant studies on M-PESA. It draws primarily on two key studies by William Jack and Tavneet Suri on the impact M-PESA has had on financial services in Kenya. They document how innovative use of this new technology has improved financial services in Kenya. Other notable academic research cited in the brief supports and amplifies their findings.