Mobile Money, Trade Credit and Economic Development: Theory and Evidence

Beck, Thorsten; Pamuk, Haki; Ramrattan, R.; Uras, Burak

doi:10.2139/ssrn.2588392

Cited by 27 publications

(19 citation statements)

References 27 publications

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“…Beck et al . (2015) find that Kenyan small businesses that purchase supplies on credit are 17% more likely to use M‐Pesa than other means such as cash. They argue that m‐money facilitates trade credit, because it reduces the security risks associated with cash.…”

Section: Mobile Money: Theory and Evidencementioning

confidence: 99%

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Mobile Money, Financial Inclusion and Development: A Review With Reference to African Experience

Ahmad¹,

Green²,

Jiang³

2020

Journal of Economic Surveys

122

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Survey literature on mobile money and its contribution in promoting financial inclusion and development, with a focus on sub‐Saharan Africa. We use taxonomic, descriptive and analytical methods to evaluate the state of knowledge in the area. We analyse how mobile technology in general may contribute to economic development and financial inclusion in theory and practise. We explain the mechanics of mobile money using Kenya's M‐Pesa as a canonical example; and consider whether the literature has fully established the potential economic impact of mobile money especially its contribution to financial inclusion. We also consider market structure, pricing and regulatory implications of mobile money. We conclude by highlighting issues that require further investigation: the take‐up of mobile money; mobile money and financial inclusion; substitutability between mobile money and conventional finance; and regulatory structures for institutions providing mobile money services.

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Section: Mobile Money: Theory and Evidencementioning

confidence: 99%

“…See, for example, Yang and Choi (2007); Andrianaivo and Kpodar (2012); Aker and Wilson (2013); Beck et al . (2015); Carlson et al . (2015); and Ky et al .…”

Section: Introductionmentioning

confidence: 99%

Mobile Money, Financial Inclusion and Development: A Review With Reference to African Experience

Ahmad¹,

Green²,

Jiang³

2020

Journal of Economic Surveys

122

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“…Beyond reduced transaction costs, there are other channels that have been empirically uncovered by which mobile money use could indirectly lead to increased investment. Using a dynamic general equilibrium model with heterogeneous entrepreneurs, imperfect credit markets, and the risk of theft, Beck et al (2015) find that mobile money use increases the use of trade credit which in turn improves firm performance. The wider literature has documented the role of trade credit, via reputation effects, in increasing access to external sources of financing such as bank financing (Alphonse et al, 2006;Buckart and Ellingsen, 2004).…”

Section: Conceptual Frameworkmentioning

confidence: 99%

“…Convenience in terms of time savings and increased safety are reported among the main advantages of using mobile money by firms as well as reducing the dependence on banks (Bangens and Soderberg, 2011). Mobile money has also been shown to be associated with a reduction in the cost of salary administration (Blumenstock, Callen, Ghani, & Koepke, 2015); increased access to different kinds of finance such as trade credit (Beck et al, 2015) as well as with rising profits among micro-enterprises (Frederick, 2014;Samuel, Shah, and Hadingham, 2005).…”

Section: Introductionmentioning

confidence: 99%

Does mobile money use increase firms’ investment? Evidence from Enterprise Surveys in Kenya, Uganda, and Tanzania

2017

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The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.

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“…58 If Kenya serves as any measure, better payment systems can contribute up to 0.5% in GDP growth in 'total factor productivity' (or productivity which more capital and labour alone can not explain). 59 If such finding scale, such extra growth could contribute $100 billion (or roughly half) of the value of the SDG financing gap alone -by only dealing with payments systems! 60 For authors uses more transparent measures, such an increase could amount of as much as 1.5% of GDP per capita.…”

Section: Figure 9: Fintech Could At Least Double Official Multi-latermentioning

confidence: 99%

The FinTech Dividend: How Much Money Is FinTech Likely to Mobilize for Sustainable Development?

Michael

2020

SSRN Journal

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Mobile Money, Trade Credit and Economic Development: Theory and Evidence

Cited by 27 publications

References 27 publications

Mobile Money, Financial Inclusion and Development: A Review With Reference to African Experience

Mobile Money, Financial Inclusion and Development: A Review With Reference to African Experience

Does mobile money use increase firms’ investment? Evidence from Enterprise Surveys in Kenya, Uganda, and Tanzania

The FinTech Dividend: How Much Money Is FinTech Likely to Mobilize for Sustainable Development?

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