Mobile 2.0: M-Money for the BOP in the Philippines

Abstract:     
The potential of electronic banking (e-banking) and electronic money (e-money) to improve efficiencies, reduce transactional costs and bring new opportunities has long been recognized (Basel, 1998). Greater interest has been generated with new forms of e-money that is transmitted with the aid of mobile phones.

Interest in the area of ICT and Development field is with reaching the unbanked, and people at the bottom of the pyramid (BOP). This includes the potential to provide them with banking-related services through mobile banking (m-banking) and mobile money (m-money) (Soriano & Barbin 2007; Bångens & Söderberg, 2008), which can be done by capitalizing on the rapid diffusion of mobile phones among social networks including the BOP (Zainudeen, 2008). The unbanked require efficient utilization of varying sources of cash inflows. Living off a cash-based economy, they receive irregular income from occasional jobs, farm produce, and “welfare” (Bångens & Söderberg, 2008). Their limited access to established financial channels exposes them to financial risks and less secure transactions.

Number of Pages in PDF File: 19

Keywords: Mobile 2.0, m-money, Bottom of the Pyramid, BOP, Philippines, mobile money

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