Mobile Money Transfer Services: The Next Phase in the Evolution in Person-to-Person Payments

This paper reviews developments in mobile money transfers, the emerging ecosystem, and its participants and business models. It also examines the implications of payment systems roaming across geographic borders with their respective legal and regulatory jurisdictions, as well as the emergence of mobile airtime as an alternative currency. The risk environment for mobile money is examined in the context of both developed and emerging countries and in light of the participation of banks and nonbank telecom firms.