The new information ecosystem being developed around mobile money: A behavioural analysis of mobile money users in South India

With the introduction of mobile money in India beginning in 2010, we wanted to research empirical understandings about the role of mobile money in replacing cash among migrant workers in South India. We also wanted to understand the role of middlemen in this broad ecosystem. Lastly we wanted to understand whether the users feel a sense of trust when using mobile money. We find that on average, mobile money users' transfer of both money per month and emergency money as compared to non-mobile users was significantly higher. There was also greater interstate transfer of cash by mobile money users. Our regression results clearly show that mobile money users send about 64% more than nonmobile users. Also mobile money users send about 44% more emergency money than non-mobile users. Its usage also increases with age, education level, and marital status. Four distinct outcomes emanated as to the rationale for why both the agents and the clients believe in this system. They are: 1. The clients' potential to save in their home bank accounts through remittances. 2. The automatic client attraction to the product; the pull-not-push strategy. 3. The employer who remits on behalf of his client had created a sub-ecosystem of mobile money over unsafe cash. This is evolving and requires further study. 4. The SMS which the clients receive instantly upon transferring money had created trust and safety. We further propose a “model” for financial inclusion which includes both the shift of migrant workers from cash transactions to mobile money and towards inclusive banking, as well as a revenue model for mobile network operators.