Introducing Digital Money to the Unbanked: What Kenya Can Teach the Rest of the World about Financial Inclusion - Benefit Daily

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Kenya was also on the list of developing countries suffering from financial exclusion: barely 6,5% of the population used to have a bank account in 2007. And then M-Pesa appeared.   The M-Pesa revolution   Back then, galloping inflation added up to the already unbearable transaction cost in many developing countries in Africa and Latin America. At the same time, mobile phones became relatively cheap and more people could finally afford them. Unluckily, there were still impediments to global inclusion, and sparse internet connection was the main one. In conditions of poverty and underdeveloped infrastructure, primitive forms of transactions were still in place, but took a new form. In Kenya, prepaid minutes were turned into commodity money: the population started to barter them for other products.

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