Mobile Money: The Economics of M-PESA

This academic analysis of M-Pesa economics provides rigorous evidence that mobile money adoption significantly increased financial inclusion in Kenya, with measurable effects on household consumption and risk-sharing. The 70% adult adoption statistic cited throughout the chapter comes from this research.

For business strategists, this paper demonstrates that mutualistic models can achieve market penetration that extractive models cannot. Traditional banking's fee structures made financial services irrational for most Kenyans. M-Pesa's shared-value model created adoption velocity that transformed an entire economy.