New Technologies in remittances sending: Opportunities for mobile remittances in Africa
Melissa Siegel & Sonja Fransen
#2012-018
Mobile remittances have a high development potential as they hold the
promise of providing quick, easy and cheap money transfers. In Africa
mobile phone usage has increased sharply and mobile banking providers
are extending their services, enabling greater opportunities for mobile
remittances. The rise of mobile banking in Africa, however, differs
substantially across countries, mainly due to a lack of financial
infrastructure. Consequently, the opportunities that mobile banking
offers for mobile remittances vary geographically. The services provided
do not always meet the needs of remittance senders and the African
remittances market is generally under-acknowledged as an important
market by providers. Restrictive financial regulations play a key role
as well. Mobile remittances have the potential to become an important
and revolutionary tool for remittances sending in Africa. Effective
policies should therefore address the limitations in the regulatory and
financial infrastructure for mobile banking to become the foundation for
mobile remittances.
Keywords: Remittances, mobile remittances, Africa, innovation,
technology, development
JEL codes: Y, Z