Title: Bridges to Cash: the retail end of M-PESA : The challenge of maintaining liquidity for M-PESA Agent Networks
Authors: Frederik Eijkman, Jake Kendall, and Ignacio Mas
Pages: 20 pp.
Source: www.microfinancegateway.org
Date (published): 29/04/2010
Date (accessed): 14/06/2010
Type of information: research report
Language: English
On-line access: yes (pdf)
Abstract:
M-PESA (“M” for mobile and “PESA” for money in Swahili) is a mobile money service promoted by Safaricom, the leading mobile operator in Kenya. The service provides a method of electronic payment accessible through mobile phones. Once customers deposit cash in their M-PESA accounts, they store the value as “e-float” – a form of electronic value issued by Safaricom – until they are ready to use it for transfers, buying airtime, or bill payments.
“De-materializing” cash into e-float offers benefits in terms of safety (reduced risk of theft or loss), convenience (less bulk, easier to send money remotely, lower transport costs, can purchase airtime and pay bills from the phone), and privacy. The core value proposition to customers is that M-PESA allows them to send money quickly and cheaply to distant business associates, friends, or relatives, a common need in Kenya where many families have some members working in urban areas.2
By solving this customer need, M-PESA has generated a large and loyal customer base. M-PESA is used by over 40% of Kenyan adults3 and more than 95% of users report that M-PESA is faster, safer, cheaper, or more convenient than alternative services like those provided by banks, ATMs, the post office, or money transfer services offered through bus companies.4 A full 84% of users claim that losing the service of M-PESA would have a large, negative effect on their lives.
The ability to quickly and conveniently withdraw cash or deposit cash is critical to achieving the high level of value that M-PESA delivers to its users. To access their accounts, customers exchange cash for e- float at a network of M-PESA retail stores (often referred to as sub-agents or agent points). There are some 16,000 agent points in Kenya, putting one within reach of most Kenyans. In fact many locations have multiple M-PESA agent points within a few hundred meters of each other. Keeping these agent points stocked with cash and e-float so that they can meet customers’ needs for deposits and withdrawals is a major challenge, and the subject of this article.

Title: Broadband policy: Beyond privatization, competition and independent regulation
Author: Larry Press
ISSN: 1396-0466
e-ISSN 1396-0458
Source: First Monday, Volume 14 Number 4, April 2009
Publisher: University of Illinois at Chicago, University Library
Date (published): 18/03/2009
Date (accessed): 04/10/2009
Type of information: peer-reviewed article
Language: English
On-line access: yes (HTML)
Abstract:
During the last 25 years, telecommunication has moved away from government-owned or regulated monopolies toward privatization with competition and oversight by independent regulatory agencies – PCR policies. We present data indicating that PCR has had little impact on the Internet during the last ten years in developed or developing nations, and discuss the reasons for this. We then describe several ways government can go beyond PCR, while balancing needs for next generation technology, decentralized infrastructure ownership, and immediate economic stimulus. We conclude that there is a need for alternatives to the expedient action of subsidizing the current Internet service providers with their demonstrated anti-competitive bent. The decisions we make today will shape telecommunication infrastructure and the industry for decades.