Ignacio Mas is executive director at the Digital Frontier Institute. He is also senior fellow at the Fletcher School at Tufts University and the Saïd Business School at Oxford University.
Mobile money feels right for mobile network operators (MNOs): it is an extension of the basic prepaid platform and distribution networks they already operate. Mobile money does require greater surveillance against fraud and money laundering measures, but it’s all fundamentally about secure messaging.
Electronic money is intangible, and that makes it intrinsically a lot more discreet than piles of cash or physical forms of savings such as jewelry or livestock.
A LiFi world is therefore one in which every person has an electronic store of value which they can easily use to make and receive payments in real time. Just like in places with reliable on-grid electricity, we can turn on a light on-demand, knowing that it will work and that the cost of flicking the switch will be small in relation to the benefits.
The sheer magnitude of the financial inclusion gap –70% of households in developing countries are unbanked— calls for pretty radical solutions. We need to overcome an access barrier (last mile infrastructure), a relevance barrier (right-sized products and services) and a usability barrier (friendly and intuitive customer experience).
The Bridges to Cash showcase recognizes players who have built a dense and sustainable network of cash merchants where people cash-in and cash-out conveniently from their electronic accounts.
