The Home Economics of E-Money: Velocity, Cash Management, and Discount Rates of M-Pesa Users

S-Tier
Journal: American Economic Review
Year: 2013
Volume: 103
Issue: 3
Pages: 369-74

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We study the mobile phone-based money transfer system in Kenya. Based on aggregate data, we estimate that the velocity with which units of e-money are transferred among users is approximately four times per month, and that the average number of transfers undergone by a unit of e-money between its creation and destruction is approximately one. Most M-Pesa transactions are made by frequent users. Examination of data on withdrawals shows a high frequency of small withdrawals and no response to "notches" in the price schedule, indicating that many users seem to have high implicit discount rates.

Technical Details

RePEc Handle
repec:aea:aecrev:v:103:y:2013:i:3:p:369-74
Journal Field
General
Author Count
2
Added to Database
2026-01-26