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Savings as Forward Payments: Innovations on Mobile Money Platforms

Forthcoming as Chapter 10 in "Financial inclusion for poverty alleviation: Banking on the unbanked." Essam Yassin Mohammed and Zenebe Bashaw Uraguchi (eds). London: Routledge.

14 Pages Posted: 29 Apr 2011 Last revised: 23 Dec 2015

Ignacio Mas

Tufts University

Colin Mayer

University of Oxford - Said Business School; Centre for Economic Policy Research (CEPR); European Corporate Governance Institute (ECGI); University of Oxford - Said Business School

Date Written: September 2, 2011

Abstract

This paper presents a new framework which allows people to manage their diverse payment, cashflow management and commitment savings needs simply and intuitively, from a single account. It builds on the logic of mobile money platforms, which provide customers with the ability to initiate real-time electronic payments from their mobile phone and to keep funds in a store-of-value account. By introducing the notion of forward (or deferred) payments, it is possible to create a much richer set of uses for the basic transactional account which cater to people’s need for commitments and ear-marking of funds for specific goals. It is functionally equivalent to a system where the customer can create multiple sub-accounts, but it is much easier to conceive and manage by the customer since it does not entail multiple account opening or multiple account numbers.

Keywords: Mobile money, mobile banking, electronic payments, branchless banking, access to finance, financial inclusion, financial systems, financial sector development, banking

Suggested Citation

Mas, Ignacio and Mayer, Colin, Savings as Forward Payments: Innovations on Mobile Money Platforms (September 2, 2011). Forthcoming as Chapter 10 in "Financial inclusion for poverty alleviation: Banking on the unbanked." Essam Yassin Mohammed and Zenebe Bashaw Uraguchi (eds). London: Routledge. . Available at SSRN: https://ssrn.com/abstract=1825122 or http://dx.doi.org/10.2139/ssrn.1825122

Ignacio Mas (Contact Author)

Tufts University ( email )

Medford, MA 02155
United States

Colin Mayer

University of Oxford - Said Business School ( email )

Park End Street
Oxford, OX1 1HP
Great Britain
+44 1865 288112 (Phone)
+44 1865 288805 (Fax)

Centre for Economic Policy Research (CEPR)

77 Bastwick Street
London, EC1V 3PZ
United Kingdom

European Corporate Governance Institute (ECGI)

c/o ECARES ULB CP 114
B-1050 Brussels
Belgium

HOME PAGE: http://www.ecgi.org

University of Oxford - Said Business School ( email )

Park End Street
Oxford, OX1 1HP
Great Britain
+44 1865 288112 (Phone)
+44 1865 288805 (Fax)

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