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Transaction Networks: Evidence from Mobile Money in Kenya

Author

Listed:
  • William Jack
  • Adam Ray
  • Tavneet Suri

Abstract

Mobile money allows households in Kenya to spread risk more efficiently. In this paper we show that these efficiencies are achieved through deeper financial integration and expanded informal networks. Active networks are more geographically dispersed and support more reciprocal financial arrangements. Consistent with the reported reciprocity, mobile money users report a higher share of transactions as being for credit and insurance purposes.

Suggested Citation

  • William Jack & Adam Ray & Tavneet Suri, 2013. "Transaction Networks: Evidence from Mobile Money in Kenya," American Economic Review, American Economic Association, vol. 103(3), pages 356-361, May.
    • Handle: RePEc:aea:aecrev:v:103:y:2013:i:3:p:356-61
    Note: DOI: 10.1257/aer.103.3.356
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    References listed on IDEAS

    as
    1. Ignacio Mas & Olga Morawczynski, 2009. "Designing Mobile Money Services Lessons from M-PESA," Innovations: Technology, Governance, Globalization, MIT Press, vol. 4(2), pages 77-91, April.
    2. Olga Morawczynski & Mark Pickens, 2009. "Poor People Using Mobile Financial Services : Observations on Customer Usage and Impact from M-PESA," World Bank Publications - Reports 9492, The World Bank Group.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    JEL classification:

    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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