Transaction Networks: Evidence from Mobile Money in Kenya

Tavneet Suri
William Jack
Adam Ray
Publication Type: 
Papers
Journal Name: 
American Economic Review
Journal Volume: 
103
Journal Number: 
3
Pages: 
356-361
Publication Year: 
2013

Mobile money allows households in Kenya to spread risk more efficiently. In this paper we show that these efficiencies are achieved through deeper financial integration and expanded informal networks. Active networks are more geographically dispersed and support more reciprocal financial arrangements. Consistent with the reported reciprocity, mobile money users report a higher share of transactions as being for credit and insurance purposes.

JEL Codes: 
D85, E42, G21, O16
Region: 
Africa (Sub-Sahara)
Country: 
Kenya
Topic: 
Mobile Financial Services
Topic: 
Informal Economy
Topic: 
Risk
Topic: 
Savings
Topic: 
Consumption
Topic: 
Payments Systems