Out of Thin Air: The behind-the-scenes Logistics of Kenya’s Mobile-money Miracle, an Analysis Summary Out of Thin Air: The behind-the-scenes Logistics of Kenya’s Mobile-money Miracle (2010) is an article from “The Economist” that appeared in the June 10th 2010 issue…
It provides alternative to Kenyans living in urban communities to send money to their loved ones living in the provinces. It beats having to spend time falling inline on banks and other money transfer services. The convenience, security, and portability of doing the transaction anytime, anywhere made M- PESA a preferred method for money transfer for 9.5 million Kenyans, that’s over 20 percent of the total population (The Economist, 2010). M- PESA works by converting the user’s cash to ‘e-float’, wherein money is digitalized and is credited to their phone. They could exchange or purchase ‘e-float’ through accredited banks and partnered agents who also sell airtime/ prepaid cards. When they want to send money or ‘e-float’ to another person, they would just key-in the amount they want to send. The receiving party—who also would have to be a Safaricom subscriber to be able to receive the e-float, would just simply show his phone—which contains the text message and reference number to the transaction, to redeem the e-float and exchange it to cash. ...
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