On average, the cost for carrying out transactions with mobile banking or other forms of branchless banking is 19% cheaper than charges of conventional banks; however the gap can further widen if branchless banks tend to lower their profits, revealed a study done by CGAP research that compared 26 branchless banking pioneers and traditional banks.
The study examined pricing for services targeting unbanked and underbanked poor people in 10 countries.
Study proposed that branchless banks should lower transactional charges to help spread the phenomenon of in-expensive banking.
Services analyzed:
- Afghanistan: M‐Paisa
- Brazil: Bradesco and Caixa
- Cambodia: WING Money
- Cote d’Ivoire: MTN Mobile Money, Orange Money
- India: Eko
- Kenya: M‐PESA and Zap
- Pakistan: easypaisa
- Philippines: GCash and Smart Money
- Tanzania: M‐PESA, Zap
- South Africa: MTN Mobile Money, WIZZIT
Study indicates that Easypaias is one of the most expensive branch-less service amongst the studied cases. It is said that this is due to less competition and cost may get revised. Study said that trend of service charges’ revision is seen higher during last 6 months.
You can download complete study here (PDF File – 4.27 MB: Right Click and Select “Save Target As”)
Via TelecomPK
