Regulating mobile money to support scale-up

High transaction costs are one of the most significant barriers to financial access in developing countries. Mobile money has dramatically reduced transaction costs and has extended a more affordable payments system to historically unbanked households, beginning to integrate them into the wider financial system.

This brief looks at how mobile money can broaden and deepen financial inclusion in developing countries, increasing financial resilience and reducing poverty. It will also discuss the benefits of government adoption of mobile payment services and the critical role for government in appropriately regulating mobile money. The scope of this brief is limited to factors within the remit of policymakers; as such, it does not delve into business model decisions of mobile network operators (MNOs).