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Competition and Interoperability in Mobile Money Platform Markets: What Works and What Doesn’t?

Author

Listed:
  • Marc BOURREAU

    (Telecom ParisTech)

  • Tommaso VALLETTI

    (Imperial College London & University of Rome)

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.

Suggested Citation

  • Marc BOURREAU & Tommaso VALLETTI, 2015. "Competition and Interoperability in Mobile Money Platform Markets: What Works and What Doesn’t?," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(99), pages 11-32, 3rd quart.
    • Handle: RePEc:idt:journl:cs9901
    as

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    References listed on IDEAS

    as
    1. Marc BOURREAU & Marianne VERDIER, 2010. "Cooperation for Innovation in Payment Systems: The Case of Mobile Payments," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(79), pages 95-114, 3rd quart.
    2. Terri Bradford & William R. Keeton, 2012. "New person-to-person payment methods: have checks met their match?," Economic Review, Federal Reserve Bank of Kansas City, vol. 97(Q III).
    3. Pinar Ozcan & Filipe M. Santos, 2015. "The market that never was: Turf wars and failed alliances in mobile payments," Strategic Management Journal, Wiley Blackwell, vol. 36(10), pages 1486-1512, October.
    4. Demirguc-Kunt, Asli & Klapper, Leora, 2012. "Measuring financial inclusion : the Global Findex Database," Policy Research Working Paper Series 6025, The World Bank.
    5. Darren Flood & Tim West & Daniel Wheadon, 2013. "Trends in Mobile Payments in Developing and Advanced Economies," RBA Bulletin (Print copy discontinued), Reserve Bank of Australia, pages 71-80, March.
    6. Jake Kendall & Bill Maurer & Phillip Machoka & Clara Veniard, 2011. "An Emerging Platform: From Money Transfer System to Mobile Money Ecosystem," Innovations: Technology, Governance, Globalization, MIT Press, vol. 6(4), pages 49-64, October.
    7. Bergman, Mats & Guibourg, Gabriela & Segendorf, Björn, 2007. "The Costs of Paying – Private and Social Costs of Cash and Card Payments," Working Paper Series 212, Sveriges Riksbank (Central Bank of Sweden).
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    Cited by:

    1. Xinyu Cai & Marko Milojevic & Denis Syromyatnikov & Anastasia Kurilova & Beata Ślusarczyk, 2021. "Mathematical Interpretation of Global Competition between Payment Systems," Mathematics, MDPI, vol. 9(17), pages 1-18, August.
    2. Markus K. Brunnermeier & Nicola Limodio & Lorenzo Spadavecchia, 2023. "Mobile Money, Interoperability, and Financial Inclusion," NBER Working Papers 31696, National Bureau of Economic Research, Inc.
    3. M Deepa, 2021. "A Study on Consumer Awareness and Satisfaction towards Online Digital Payment - With Special Reference to Pollachi Taluk," ComFin Research, Shanlax Journals, vol. 9(3), pages 25-29, July.
    4. Anthea Paelo & Simon Roberts, 2022. "Competition and Regulation of Mobile Money Platforms in Africa: A Comparative Analysis of Kenya and Uganda," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 60(3), pages 463-489, May.
    5. Juan Erasmo Gomez-Morantes & Richard Heeks & Richard Duncombe, 2022. "Conceptualising Digital Platforms in Developing Countries as Socio-Technical Transitions: A Multi-level Perspective Analysis of EasyTaxi in Colombia," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(2), pages 978-1002, April.
    6. Grzybowski Lukasz & Lindlacher Valentin & Mothobi Onkokame, 2023. "Interoperability Between Mobile Money Agents and Choice of Network Operators: The Case of Tanzania," Review of Network Economics, De Gruyter, vol. 22(1), pages 27-52, June.

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    More about this item

    Keywords

    financial inclusion; mobile money platforms; interoperability; developing countries.;
    All these keywords.

    JEL classification:

    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • G2 - Financial Economics - - Financial Institutions and Services

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