Third-party provider as the key to unlocking the potential of Mobile Money

Very interesting insight into the success drivers of the business case for mobile money in Papua New Ginea. Rugged geography and poor infrastructure are fertile ground for the development of a mobile payment business model. The key in this case is mathcing the agent for airtime with the cash out service. In such underserved economies, this seems to be the path, but we should strive to seek a model where conversion to real cash is avoided altogether by storing cash value in the mobile device, while having ubiquitous acceptance at retail points of sale. Otherwise, the model will always be constrained by the footprint of an agent network that stores significant amounts of physical cash, which carries a large administrative cost. We need to leap into this model in order to have emoney make a real dent into the cash economy which comprises the average 60-70% of all retail transactions.

via Is a third-party provider the key to unlocking the potential of Mobile Money in Papua New Guinea? |

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