Innovations in emerging markets: the case of mobile money

Pelletier, Adeline; Khavul, Susanna and Estrin, Saul. 2020. Innovations in emerging markets: the case of mobile money. Industrial and Corporate Change, 29(2), pp. 395-421. ISSN 0960-6491 [Article]

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Abstract or Description

Mobile money is a financial innovation that provides transfers, payments, and other financial services at a low or zero cost to individuals in developing countries where banking and capital markets are deficient and financial inclusion is low. We use transaction costs and institutional theories to explain the growth and impact of mobile money. Having developed a new archival dataset that tracks mobile money deployment across 90 emerging economies during 16 years between 2000 and 2015, we address the question of relative economic impact of the banking and telecoms sectors in the provision of mobile money. We show that telecom groups and not banks are more likely to launch mobile money in countries where legal rights are weaker and credit information less prevalent. However, it is when mobile money is offered via a banking channel that the spillover effects on the economy are greater. Findings have significant implications for policy and strategy.

Item Type:


Identification Number (DOI):

Additional Information:

JEL classification: F63, G21, M13, O33


Mobile money, financial services, emerging markets, banking, telecoms sector

Departments, Centres and Research Units:

Institute of Management Studies


9 September 2019Published Online
April 2020Published

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Date Deposited:

11 Sep 2019 09:37

Last Modified:

11 Jun 2021 04:59

Peer Reviewed:

Yes, this version has been peer-reviewed.


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