Microfinance Opportunities publishes Cash In, Cash Out Kenya, the first in-depth look at M-PESA using the Financial Diaries research methodology—and the first major report to provide contextual and critical analysis of where mobile money might expand beyond “send money home.”
Using a Financial Diaries methodology, Microfinance Opportunities undertook a study to examine how low-income Kenyans use M-PESA, the country’s pioneering e-money service. The study focused on:
- the value of M-PESA to low-income individuals;
- the most likely areas for M-PESA’s future growth; and
- whether M-PESA can serve as a platform for financial services beyond remittances.
The study provides a Distance/Purpose Framework that segments the e-money market by intended use. It also examines the length of the “e-money loop” (the number of times an e-money unit is transferred before it is cashed out). The Distance/Purpose Framework suggests that e-money providers have a virtually untapped potential “sweet spot,” in terms of cost and price, serving the business market segments provided that issues of trust can be overcome.