Mobile Money: The Economics of M-PESA
This paper reports initial results of two rounds of a large survey of households in Kenya. The paper first summarizes the mechanics of M-PESA, and reviews its potential economic impacts. It then document the sequencing of adoption across households according to income and wealth, location, gender, and other socioeconomic characteristics, as well as the purposes for which the technology is used, including saving, sending and receiving remittances, and direct purchases of goods and services. In addition, it reports findings from a survey of M-PESA agents, who provide cash-in and cash-out services, and highlight the inventory management problems they face.