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Digital India: The Rush to Mobile Money

Madness or Masterstroke?
July 13, 2011 by Neeraj Aggarwal, Nimisha Jain, and Arvind Subramanian
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In This Article
  • Mobile money promises to unleash a radical transformation of the financial and telecom sectors, reducing churn and providing other benefits to operators.

  • By 2015, $350 billion in payment and banking transactions could flow through mobile phones, compared with about $235 billion of total credit- and debit-card transactions today.

  • Although the blueprint for building a mobile payments and banking business has not yet been written, the dynamics of the market are in place.

 

The mobile phone has already shaped India indelibly, drawing the far-flung regions of the nation closer together and creating economic opportunity for many individuals and small businesses. The mobile phone is now poised to become the fulcrum that launches mobile money as an everyday form of currency.

Mobile money promises to unleash a radical transformation of the financial and telecom sectors. While these developments are promising for India, they may not be a financial boon for telecom operators. However, mobile money can help reduce churn and provide other benefits to operators so that they have strong reasons to capture this opportunity.

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