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Submitted by TKama on
Clearly M"Pesa was a trigger, allowing carriers and their locally trusted brands, management structure to execute perfectly. Things have worked greatly in Kenya where has created a lot of "intangibles" (beyond the first mover's advantage) that are very hard to replicate : At this stage, when extending to the rest of emerging markets, I think the service should evolve to be more ubiquitous, becoming a truly suited mobile payment mean for emerging markets. Few points (to cite few) that Mobile Money should address: 1) Delegated Payments : The main specificity in payment for emerging markets is the notion of "delegation". Given the unbalanced welfare distribution, a very few 10% own over 90% of available funds...thus at 90% of transactions, the buyer at store, is paying on behalf of a third party : fund's "originator". The payment transaction become "Originator -> Buyer - > merchant relation. Current payment networks haven't been designed for such relation. They ignore that originator ...who is the main decision maker in the transaction. Originator can be the family main worker, a remote parent etc ...and has various instructions and claims that today, aren't taken into account. A true payment system for emerging markets, i believe should strongly highlight this core specificity 2) Empowering local businesses :The foundation of most emerging economies. Today's mobile money is consumer oriented (historically for P2P transfers) and less merchant "friendly". Micro-merchants, producers, craftsmen, schools, hospitals, grocery stores, etc ...should be a true target, allowing them to grow and create jobs. Getting informal businesses to access "funding" and get better organized to address larger, even international markets is key to get many countries out of their current situations. .... With These on top of existing service, i believe extending Mobile Money will create an even larger impact. The best launch strategy is probably a blend of African, Latin American, and South Asian pilots: In each region, there are strong regional hubs to start with : Nigeria/Ghana in English speaking west africa, Senegal/Mali in french speaking, Philippines/Indonesia, Brazil/Peru would be my best bet.