Mobile Money and Developing Countries

In developing countries, the use of mobile phones make up for inadequate infrastructure.  They allow information to flow more freely, making markets more efficient and they empower new entrepreneurs.  The World Bank has calculated that for every 10 new mobile phones per 100 people, there is a 0.8 increase in GDP.

They also started to be used as an alternative to cash.  By using 'mobile money' Africans, who migrate to urban areas to find work, can quickly and securely send money back to rural areas just by sending a text message.

They also provide a stepping stone to saving money.


An extract from The Economist : "Mobile banking is safer than storing wealth in the form of cattle (which can become diseased and die), gold (which can be stolen), in neighbourhood savings schemes (which may be fraudulent) or by stuffing banknotes into a mattress."


Videos and an article from The Economist here