Liquidity Management for Mobile Money Providers : Insights from Global Experiments
Solving the liquidity management challenge is one of the next big issues facing mobile money providers around the world. In Kenya, 20 percent of m-pesa customers report that they cannot withdraw money from an m-pesa agent. In 70 percent of those ca...
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| Language: | English en_US |
| Published: |
Washington, DC
2017
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| Online Access: | http://documents.worldbank.org/curated/en/802221501150875893/Liquidity-management-for-mobile-money-providers-insights-from-global-experiments http://hdl.handle.net/10986/28407 |
| Summary: | Solving the liquidity management
challenge is one of the next big issues facing mobile money
providers around the world. In Kenya, 20 percent of m-pesa
customers report that they cannot withdraw money from an
m-pesa agent. In 70 percent of those cases, the retail agent
did not have sufficient funds. Nonetheless, more than 98
percent of m-pesa customers are happy with the solution.
This suggests that even though there are liquidity problems,
the customers are willing to look past that - at least for
the time being - because of the overall value they perceive
from the mobile money solution. Liquidity management takes
two forms: management of electronic value in the mobile
wallet and cash management. It is becoming more common for
electronic liquidity to be handled not only by the retail
agents, but also by the master agents. Technology is also
being developed to help the master agents and the mobile
financial services provider (MFSP) manage liquidity. |
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