Enabling Digital Financial Inclusion through Improvements in Competition and Interoperability: What Works and What Doesn't?

Abstract

The development of mobile payment platforms in developing countries is revolutionizing access to finance for the poor. Mobile payment platforms allow their users to pay and transfer funds in mobile money but also offer access to other financial products, such as savings or insurance.

In this paper we first review the economic features of mobile payment systems in developing countries and study the cooperation models that can emerge between the different firms potentially involved in a mobile payment transaction. We then discuss the main competition concerns that public authorities should be concerned about and which regulatory tools they can consider as a remedy.