Visa and MasterCard Boosting Services In Developing Economies Via Mobile Banking

Our class on Tuesday focused primarily on various effects of and issues with usage of mobile phones in the daily lives of some in developing nations. While we talked more about the basic effects of having a mobile phone on economic development, mobile phone access can influence connections to financial information and services. This past week, Forbes came out with an article about two major companies in the financial services sector and their plans involving growing developing economies. MasterCard and Visa see the growing mobile phone usage in developing nations around the world as an opportunity to increase their reach in such economies. While full financial services will not be available, the usage of mobile banking and mobile payment technology certainly has the potential to create great financial opportunities for people in those developing nations- whether they already have access to traditional financial services or not. These changes could lead to even greater economic development than already projected for many of the developing economies.

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3 responses to “Visa and MasterCard Boosting Services In Developing Economies Via Mobile Banking

  • mjurczuk

    I definitely see how mobile banking can greatly benefit not only the economies of underdeveloped nations but also the financial situations of individual people. People owning small businesses that, for example, sell food or clothes would be able to more efficiently collect payments via mobile banking, which I presume to be a very approachable and comparatively simple technological advancement. Implementing mobile banking technologies into underdeveloped, rural economies would be a significant technological “leapfrog,” but an effective and useful one nonetheless.

  • kbruce2016

    On the one hand, yes, the extended use of mobile phones could make some financial services more accessible to the developing world. Those who live far away from big banks could more easily access some services through mobile banking. However, there are many other challenges that also prevent people in the developing world from accessing these services. People living in poverty often don’t have the collateral necessary to access services from big companies like Visa and Mastercard. However, I think this is something that Microfinance institutions could take atvantage of. Increased mobile service could make it easier to keep in contact with loanees, in addition to the regular group meetings (usually monthly). It could also make loan payments much easier, as microloans have a very high cost in comparison to their size.

  • skagan2016

    This is a really good point, but it’s also important to point out that for mobile banking you usually need access to the internet via your cell phone or to have a data plan. While mobile phone use is expanding, a lot of phones that are in developing nations are the more basic mobile phones that don’t have internet capabilities, or smart phones that have these apps. I definitely think mobile banking can help make banking more accessible to some people, but not necessarily just the fact that mobile phones are being more widely used means that those people will be able to use mobile banking.

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