HaukeHillebrandt comments on Estimating the Value of Mobile Money - Effective Altruism Forum

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Comment author: HaukeHillebrandt 21 December 2016 02:57:42PM 1 point [-]

Very cool post.

Just saw that the transaction costs for m-pesa are quite high - the company makes ~20% profit... so there might be something that a Wave-like startup could do: https://en.wikipedia.org/wiki/M-Pesa#Cost.2C_transaction_charges.2C_statistics

maybe using crypocurrency - see here:


Comment author: Jeff_Kaufman 21 December 2016 06:19:20PM *  2 points [-]

Just saw that the transaction costs for m-pesa are quite high - the company makes ~20% profit

The transaction costs listed on the wikipedia page you cite aren't trivial, but would average well less than 20% unless most transactions are (a) very small and (b) to unregistered users. I'm missing something.

EDIT: could it just be that their profit is 20% of expenses, as opposed to 20% of the money that flows through the M-Pesa network?

maybe using crypocurrency

That article doesn't really show that cryptocurrency helps here. Mostly they're unhappy with transaction fees on international remittances, but you can have low transaction fees just by automating interactions with the money transfer organization, without going to cryptocurrency. And with cryptocurrency generally you pay someone a fee to get your money into the cryptocurrency and then your recipient pays someone else a fee to get it into their local currency.

Comment author: Ben_Kuhn 05 January 2017 09:34:51PM 2 points [-]

I think their profit is 20% of their revenue (for a money transfer company, revenue is the total fees brought in, not total money paid into the network).