Innovation and Financial Inclusion in Kenya: A Case Study of M-PESA

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This chapter analyzes the role of financial innovation and mobile phone technologies to financial inclusion in Kenya. In order to do so, a case study on M-PESA is conducted, the leading mobile service of money transfers in Africa, which is offered by Safaricom. M-PESA services are cheap and easy to use in comparison to other formal and informal providers of financial services. It solves two different problems in Kenya: customers do not have to travel anymore long distances to reach financial services and more people can afford them. As result and in line with the literature, this chapter suggests that M-PESA services can be considered a type of disruptive innovation that promotes financial inclusion and wealth growth in Kenya.
Original languageEnglish
Title of host publicationTechnological Integration as a Catalyst for Industrial Development and Economic Growth
EditorsBryan Christiansen, Ülkü Yüksel
Place of PublicationHershey, PA
PublisherIGI global
Publication date2017
ISBN (Print)9781522523192
ISBN (Electronic) 9781522523208
Publication statusPublished - 2017
SeriesAdvances in finance, accounting, and economics (AFAE) book series

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