M-Pesa and Mobile Money in Kenya: Pricing for Success

2017 ◽  
pp. 1-17 ◽  
Author(s):  
Sarit Markovich ◽  
Charlotte Snyder
Keyword(s):  
Mobile Communications ◽  
Cash Transfers ◽  
Cash Transfer ◽  
List Type ◽  
Pricing Strategies ◽  
Future Prospects ◽  
Mobile Money ◽  
Money Transfer ◽  
Market Leader ◽  
Two Sided Markets

The Kenyan government’s announcement of a new 10 percent tax in March 2013 threatened the future prospects of M-Pesa, Safaricom’s mobile money transfer service, which had revolutionized the way money moved in Kenya. The new tax would be levied on all cash transfers but was largely targeted at M-Pesa, which controlled around 80 percent of the cash transfer market. In response to the new tax, Safaricom, the mobile communications market leader, announced a 10 percent price increase.The case presents the structure Safaricom established in order to develop a mobile money transfer service in Kenya. As a concept, M-Pesa was unprecedented in Kenya: prospective customers had to get comfortable with the idea that a mobile communications company could provide a payment system, that transactions could be initiated through a mobile phone, and that nonbank outlets could provide cash-in/cash-out services. Even when the concept was accepted, however, customers needed a convenient network of agents to handle transactions, and stores needed to see demand from customers in order to be motivated to become agent outlets. Thus, in order to grow, M-Pesa needed to aggressively pursue and acquire both customers and agents in this two-sided market. Understand the complexity of pricing in two-sided markets Evaluate the profitability of different pricing strategies in two-sided markets Understand the effect of an innovation on the creation and capture of value Identify possible threats to competitive advantage in two-sided markets as well as in developing countries Understand the value of co-opetition and how cooperation with competitors and complementors can increase a company’s profitability

Nesting Expectations: What Can the Mexican and Argentinean Cash Transfers Tell Us about the Development of Development?

1969 ◽  
Vol 59 (1) ◽  
pp. 157-169
Author(s):  
Andrés Dapuez
Keyword(s):  
Latin America ◽  
Latin American ◽  
A Priori ◽  
Cash Transfers ◽  
Conditional Cash Transfers ◽  
Cash Transfer ◽  
Short Term ◽  
Transfer Programs

Latin American cash transfer programs have been implemented aiming at particular anticipatory scenarios. Given that the fulfillment of cash transfer objectives can be calculated neither empirically nor rationally a priori, I analyse these programs in this article using the concept of an “imaginary future.” I posit that cash transfer implementers in Latin America have entertained three main fictional expectations: social pacification in the short term, market inclusion in the long term, and the construction of a more distributive society in the very long term. I classify and date these developing expectations into three waves of conditional cash transfers implementation.

Effect of Cash Transfer on School Dropout Rates using Longitudinal Data Modelling: A Randomized Trial of Research Initiative to Support the Empowerment of girls (RISE) in Zambia

2018 ◽  
Vol 11 (1) ◽  
pp. 507-515
Author(s):  
Mutale Sampa ◽  
Choolwe Jacobs ◽  
Patrick Musonda
Keyword(s):  
Randomized Trial ◽  
Adolescent Girls ◽  
Protective Factor ◽  
School Dropout ◽  
Cash Transfers ◽  
Repeated Measurements ◽  
Cash Transfer ◽  
Dropout Rates ◽  
Research Initiative ◽  
Rural Zambia

Background: School dropout rates, as well as early marriages and pregnancies, are high among adolescent girls in rural Zambia. In the quest to fight this, the Research Initiative to Support the Empowerment of girls (RISE) trial has been providing cash transfers and community dialogues to adolescent girls in rural Zambia. The overall goal of the study was to establish the effects of cash transfers on adolescent girls’ school dropout rates in selected provinces of Zambia. Methods: The study was nested in the RISE trial which is a cluster randomized trial conducted in Central and Southern provinces of Zambia. A total of 3500 adolescent girls were included in the study. Random intercepts model was used to model the individual effects estimates, taking account of the dependency that was likely to occur due to the repeated measurements and clustering in the study. Results: Girls who were married or cohabiting and girls who had given birth, were significantly less likely to be in school (OR=0.004, 95% CI {0.001-0.02}, p-value=<0.0001) and (OR=0.003, 95% CI {0.02-0.04}, p-value=<0.0001) respectively. Consistently receiving cash transfers increased the chance of a girl being in school (OR=8.51, 95% CI {4.50-16.08}, p-value=<0.0001). There was an indication that the combined intervention arm had a reduced chance of girls being in school, however, we could not rule out chance finding (OR=0.89, 95% CI {0.59-1.36}, p=0.606). Conclusion: The study found that marriage or cohabiting and giving birth whilst in school reduce the chances of the girl continuing schooling. No significant association could be attributed to the type of intervention, However, consistent receipt of cash transfers was shown to be a protective factor of school dropout rates in the study.

In-cash Transfers: from Passive to Empowered Beneficiaries in the Global South

2021 ◽  
pp. 1-17
Author(s):  
Katarina Pitasse Fragoso
Keyword(s):  
Public Policy ◽  
Poverty Alleviation ◽  
Active Role ◽  
Cash Transfers ◽  
Cash Transfer ◽  
Main Argument ◽  
The Public ◽  
Local Public Services ◽  
The Poor ◽  
Public Policy Decisions

Over the last few years, there has been an increase in discussions advocating in-cash programmes as a way to alleviate poverty. Indeed, this represents a leap forward in comparison to in-kind programmes. However, little progress, at least in developing countries, has been achieved in answering the question of how the state should transfer the means of redressing deprivation to those who are living in poverty. This article addresses this issue by challenging anti-poverty programmes through a social-egalitarian framework. My main argument starts from the perspective that in-cash transfers are a necessary but not sufficient mechanism for poverty alleviation. I acknowledge that cash alone does not guarantee the poor an equally active role in influencing the public-policy decisions that affect their lives. I then suggest a participatory device to complement the cash-transfer proposal in order to give institutional opportunities to the poor to decide, together with practitioners, what should be done at the level of local public services.

scholarly journals Shonjibon cash and counselling: a community-based cluster randomised controlled trial to measure the effectiveness of unconditional cash transfers and mobile behaviour change communications to reduce child undernutrition in rural Bangladesh

2020 ◽  
Vol 20 (1) ◽  
Author(s):  
Tanvir M. Huda ◽  
Ashraful Alam ◽  
Tazeen Tahsina ◽  
Mohammad Mehedi Hasan ◽  
Afrin Iqbal ◽  
...  
Keyword(s):  
Mobile Phone ◽  
Controlled Trial ◽  
Cluster Randomised Controlled Trial ◽  
Cash Transfers ◽  
Cash Transfer ◽  
Child Undernutrition ◽  
Change Communication ◽  
Cluster Randomised ◽  
Randomised Controlled ◽  
Unconditional Cash Transfers

Abstract Background Undernutrition is strongly associated with poverty - levels of undernutrition are higher in poor countries than in better-off countries. Social protection especially cash transfer is increasingly recognized as an important strategy to accelerate progress in improving maternal and child nutrition. A critical method to improve nutrition knowledge and influence feeding practices is through behaviour change communication intervention. The Shonjibon Cash and Counselling study aims to assess the effectiveness of unconditional cash transfers combined with a mobile application on nutrition counselling and direct counselling through mobile phone in reducing the prevalence of stunting in children at 18 months. Method The study is a longitudinal cluster randomised controlled trial, with two parallel groups, and cluster assignment by groups of villages. The cohort of mother-child dyads will be followed-up over the intervention period of approximately 24 months, starting from recruitment to 18 months of the child’s age. The study will take place in north-central Bangladesh. The primary trial outcome will be the percentage of stunted children at 18 m as measured in follow up assessments starting from birth. The secondary trial outcomes will include differences between treatment arms in (1) Mean birthweight, percentage with low birthweight and small for gestational age (2) Mean child length-for age, weight for age and weight-for-length Z scores (3) Prevalence of child wasting (4) Percentage of women exclusively breastfeeding and mean duration of exclusive breastfeeding (5) Percentage of children consuming > 4 food groups (6) Mean child intake of energy, protein, carbohydrate, fat and micronutrients (7) Percentage of women at risk of inadequate nutrient intakes in all three trimesters (8) Maternal weight gain (9) Household food security (10) Number of events for child suffering from diarrhoea, acute respiratory illness and fever (11) Average costs of mobile phone BCC and cash transfer, and benefit-cost ratio for primary and secondary outcomes. Discussion The proposed trial will provide high-level evidence of the efficacy and cost-effectiveness of mobile phone nutrition behavior change communication, combined with unconditional cash transfers in reducing child undernutrition in rural Bangladesh. Trial registration The study has been registered in the Australian New Zealand Clinical Trials Registry (ACTRN12618001975280).

Drivers of the experience value of mobile money transfer service: Senegaleseuser perspectives

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ndeye Astou Manel Fall ◽  
Fatou Diop-Sall ◽  
Ingrid Poncin
Keyword(s):  
Value Creation ◽  
Behavioral Intentions ◽  
Individual Characteristics ◽  
Customer Relationship ◽  
Management Policy ◽  
Business Practices ◽  
Service Market ◽  
Content Type ◽  
Mobile Money ◽  
Money Transfer

Purpose Digital service innovations have enabled service market access, transforming Africa. This paper aims to investigate individual and contextual drivers of experience value of mobile money transfer (MMT) service during post-adoption given impacts of individual/cultural characteristics in Senegal. Design/methodology/approach Mixed methods. Study 1 qualitatively investigates the effects of individual-contextual drivers on the experience value of MMT and behavioral intentions. Study 2 quantitatively tests the main causal effects between drivers and MMT. Findings Conceptual models of experience value including ethical and social dimensions proposed in MMT are positively related to behavioral intentions. Need for social interaction (NSI), self-efficacy (SEFF) and social pressure (SP) – sources of experience value creation/destruction – must be integrated into business practices. Results show the indirect positive influence of NSI on behavioral intentions through MMTs experience value. Moreover, traditional cultural orientation (TCO) is a source of value creation/destruction. Managers should build ethical relations with users, integrate social functions in MMT and understand users’ cultural and individual characteristics for better customer relationship management policy. Originality/value Few studies examine how MMT experience creates/destroys value in a Sub-Saharan African context, specifically in Senegal. The authors show that SP might destroy value and reveal how individual variables such as SEFF, NSI and TCO affect experience value creation/destruction. Surprisingly, NSI creates value, revealing MMT as hybrid self-service technology.

‘Upliftment’, friends and finance: everyday exchange repertoires and mobile money transfer in Kenya

2018 ◽  
Vol 56 (4) ◽  
pp. 569-594 ◽  
Author(s):  
Susan Johnson ◽  
Froukje Krijtenburg
Keyword(s):  
East Africa ◽  
Low Income ◽  
Financial Inclusion ◽  
Financial Systems ◽  
Resource Exchange ◽  
Mobile Money ◽  
Depth Analysis ◽  
Money Transfer ◽  
New Perspective ◽  
Analytical Approaches

AbstractThe rapid and massive adoption of mobile money transfer (MMT) services in East Africa, particularly in Kenya, stands in stark contrast to historically low use of formal financial systems on the continent. Its ‘fertile grounds’ therefore require in-depth analysis to understand the implications for African financial systems. This paper argues for the need to examine the underlying conceptual environment that enables low income and poor people's MMT adoption. It innovatively combines anthropological with ethnolinguistic analytical approaches to distinguish two repertoires around resource exchange. First, is a relational financial repertoire where relationships are developed and consolidated to create support and ‘upliftment’. A contrasting resource-focused repertoire is more like that of the formal financial sector. Identifying the conceptual features of relationality, the study offers a new perspective on the adoption and use of MMT in Africa and highlights the potential for disjunctures with policy efforts to increase financial inclusion.

Cash transfers and the social determinants of health: Towards an initial realist program theory

Evaluation ◽  
2018 ◽  
Vol 25 (2) ◽  
pp. 224-244 ◽  
Author(s):  
Ebenezer Owusu-Addo ◽  
Andre M. N. Renzaho ◽  
Ben J. Smith
Keyword(s):  
Social Determinants Of Health ◽  
Social Determinants ◽  
News Media ◽  
Media Framing ◽  
Cash Transfers ◽  
Cash Transfer ◽  
Determinants Of Health ◽  
Program Theory ◽  
Middle Income ◽  
The Social

Cash transfers are a widely adopted social policy initiative for addressing poverty and vulnerability. Cash transfers’ exponential growth in low- and middle-income countries provides a unique opportunity to advance our understanding of how they work to impact the social determinants of health. This article reports on a realist qualitative approach to developing an initial program theory about the role of cash transfers in tackling the social determinants of health. A set of 12 initial hypotheses regarding how cash transfers might work to address the social determinants of health were developed from the data. Cash transfer key mechanisms of change found in the study included political will and leadership and news media framing at the macro level, collaboration and intersectoral working at the meso level, and household motivation, empowerment, choice making, awareness raising and risk-taking behaviour at the micro level. This study has developed initial hypotheses that can be tested and refined in future studies using a realist approach.

The Anti-Incumbent Effects of Conditional Cash Transfer Programs

2016 ◽  
Vol 58 (1) ◽  
pp. 49-71 ◽  
Author(s):  
Diego Sanches Corrêa ◽  
José Antonio Cheibub
Keyword(s):  
Survey Data ◽  
Latin American ◽  
Conditional Cash Transfer ◽  
Cash Transfers ◽  
Behavioral Changes ◽  
Cash Transfer ◽  
Transfer Programs ◽  
Conditional Cash Transfer Programs ◽  
Latin American Countries

AbstractScholars concur that conditional cash transfer (CCT) programs have a strong proincumbent effect among beneficiaries. Although no study has properly focused on the overall effect of cash transfers on incumbents' national vote shares, most scholars have deduced that this effect is positive; i.e., that cash transfers lead to the expansion of incumbents' electoral bases. This article analyzes survey data from nearly all Latin American countries and confirms that beneficiaries of CCT programs are more likely to support incumbents. However, it also shows that CCT programs may induce many voters who were previously incumbent supporters to vote for the opposition. As a consequence, the overall impact of cash transfers on incumbents' vote shares is indeterminate; it depends on the balance between both patterns of behavioral changes among voters. This study is the first to report evidence that cash transfer programs may have significant anti-incumbent effects.

scholarly journals Cash Transfers and Child Nutrition: Evidence from sub-Saharan Africa

2021 ◽  
Vol 5 (3) ◽  
Author(s):  
Oladayo Nathaniel Awojobi
Keyword(s):  
Systematic Review ◽  
Randomised Controlled Trials ◽  
Child Nutrition ◽  
Cash Transfers ◽  
Cash Transfer ◽  
Sub Saharan Africa ◽  
Controlled Trials ◽  
Sub Saharan ◽  
Randomised Controlled ◽  
Nutritional Outcomes

This paper summarises the arguments and counterarguments within the scientific discussion on cash transfers and child nutrition. The main purpose of the research is to assess the effectiveness of cash transfers in improving nutritional outcomes in vulnerable children in sub-Saharan Africa. Systematisation of the literary sources indicates that studies have justified cash transfer as social-income support that addresses a vital social determinant of health (income) for children in low-and-middle-income countries. The methodological basis of this study is a systematic review that searched a wide range of academic and grey literature databases, including PubMed, Cochrane Library and Google Scholar. This study included cluster-randomised controlled trials (R.C.T.s), randomised controlled trials, quasi-experimental studies, mixed-methods studies, and non-randomised cluster trials. Studies included in this systematic review were screened for their eligibility. The systematic review uses the Cochrane data collection form to extract data from the included studies. It was not feasible to statistically combine the results of the studies due to the heterogeneity of most of the studies. Preferably, the review employs a narrative synthesis to present the estimated effects of cash transfers on children’s nutritional outcomes. The systematic review presents the results of data synthesis, of which eleven studies met the inclusion criteria. Overall, the evidence from the systematic review indicates that cash transfer programmes targeted at children effectively improve anthropometric and nutritional outcomes. Further research is needed to spell out the multiple pathways to how cash transfers improve children’s nutritional outcomes. Moreover, this systematic review shows the importance of cash transfers in improving child nutrition. Policymakers should continue to employ institutional mechanisms to strengthen the nutritional status of children, especially the vulnerable ones since cash transfer intervention is a temporary measure.

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