Title: Out of thin air. The behind-the-scenes logistics of Kenya’s mobile-money miracle
Source: www.economist.com
Publisher: The Economist
Date (published): 10/06/2010
Date (accessed): 14/06/2010
Type of information: article
Language: English
On-line access: yes (HTML)
Abstract:
It is like magic. By clicking a few keys on a mobile phone, money can be zapped from one part of Kenya to another in seconds. For urban migrants sending money home to their villages, and for people used to queuing at banks for hours to pay bills or school fees, the M-PESA money-transfer service, operated by Safaricom, Kenya’s largest mobile operator, is a godsend. No wonder it is used by 9.5m people, or 23% of the population, and transfers the equivalent of 11% of Kenya’s GDP each year; or that it has inspired more than 60 similar schemes across the world.

But despite the apparently frictionless transfer of money through the air, making a money-transfer system work smoothly requires a great deal of backstage effort. Jake Kendall and Ignacio Mas of the Bill & Melinda Gates Foundation, and Frederik Eijkman of PEP Intermedius, a financial-services firm, explain how it all works in a paper presented in late Ma