Mobile money: challenges and regulatory approaches to mobile payment systems

Abstract

Mobile payment systems as their name suggests, are systems that are used to carry out financial transactions over a mobile telecommunications network. There are two main models of mobile payment systems : The Additive model -The mobile phone is simply used as a conduit for access to an existing bank account e.g. mobile banking services, which allow bank customers to access their bank accounts from their mobile phones.The Transformative model -The financial service is based entirely upon the mobile phone/ (from the user 's perspective). Examples of these include Mpesa and Airtel money, mobile payment services offered by the two leading mobile telecommunications companies -Safaricorn and Airte] Kenya.