Organizational models of mobile payment systems in low-resource environments

ABSTRACT

The rapid growth and diffusion of mobile phones in the developing world has created an inclusive and dynamic platform to address a smorgasbord of socio-economic challenges. The uptake of mobile payment (m-payment) systems is a compelling example of how such a platform can be leveraged to democratize access to online banking and financial services. M-payment systems encompass mobile phone-based applications that enable the transfer of value while affording users’ security, accessibility, and efficiency and helping organizations reduce overheads and foster transparency. While M-Pesa and a few other systems are well documented, the literature is sparse on the different methods of using m-payment systems in developing countries. Based on a comprehensive literature review that includes 64 different m-payment applications from around the world, this article synthesizes 12 organizational models. The presentation of each of these models includes an explanatory visual, brief description, and several examples to illustrate its opportunities and benefits. This article culminates with a discussion of common implementation challenges, best practices, and gaps in the extant ecosystem. This will inform innovators and entrepreneurs seeking to strengthen, design, and implement m-payment systems that bridge the last-mile challenge of financial inclusion.

KEYWORDS:

• Mobile payments
• m-payments
• ICTD
• mobile phones
• organizational model

Notes on contributors

Greg Wenner is a Network Engineer at a small technology consulting firm. He graduated from Penn State University in 2016 with dual Bachelor’s degrees in Information Sciences & Technology and Art.

Joshua T. Bram is a medical student at the Perelman School of Medicine at the University of Pennsylvania. As an undergraduate student at Penn State, Josh was heavily involved in the Humanitarian Engineering and Social Entrepreneurship (HESE) program, serving as a teaching assistant, traveling to Sierra Leone and Zambia, and working closely with projects in several sectors.

Martin Marino is a graduate of The Pennsylvania State University, class of 2015. He majored in Information Sciences and Technology with a minor in Entrepreneurship Engineering. Martin is currently working as an IT consultant for Cognizant Technology Solutions.

Eric Obeysekare is a PhD candidate in Information Sciences and Technology at Pennsylvania State University. He earned his Bachelor’s degree in Computer Science from Pennsylvania State University in 2009 and served as a Peace Corps Volunteer in Cameroon from 2011 to 2013. His research addresses the use of information and communication technologies in developing countries.

Khanjan Mehta is the inaugural Vice Provost for Creative Inquiry and Director of the Mountaintop Initiative at Lehigh University. In a previous avatar, Mehta was the Founding Director of the Humanitarian Engineering and Social Entrepreneurship (HESE) Program, Assistant Professor of Engineering Design, and Affiliate Professor of International Affairs at Penn State.

Disclosure statement

No potential conflict of interest was reported by the authors.