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Demonetisation for changing payment behaviour and building platforms
Journal of Payments Strategy & Systems,
11
(2),
158-167
(2017)
Abstract
Although mobile money is seen as the solution for financial inclusion, some countries have been facing challenges in the adoption of mobile wallet accounts. Slow adoption is linked to the perceived benefit of the mobile wallet, which, among other things, is informed by the cost of adoption. This paper discusses various issues relating to the pricing of mobile payments and how pricing decisions affect consumer adoption of mobile wallets in developing countries. It discusses how the demonetisation of digital payment instruments can positively affect the perceived utility and hence adoption of mobile payment, in addition to the associated network effects and implications for Big Data. It also suggests that FinTechs are the best candidates to demonetise payments. It further explains how mobile wallets can be used as the foundations for applications and services that mobile financial service providers have been unable to provide by themselves.
Keywords: digital payments; payment behaviour; payment pricing; behaviour change; mobile money; financial inclusion
The full article is available to subscribers to the journal.
Author's Biography
Qasif Shahid is Chief Executive Officer of Finja, a FinTech startup that he co-founded. Qasif is also the founder of FinSurgents, a financial services startup consultancy. He has close to 20 years of international experience in building, managing and growing digital financial services, products and businesses. His prior roles include Head of Digital Banking for MCB in Pakistan, Head of Digital Banking at Standard Chartered Pakistan and Head of Marketing and Digital Channels for ABN AMRO Singapore.
Lubna Razaq is Director of the FinTech Centre at the Information Technology University, Lahore. As well as managing the centre, Lubna provides thought leadership to research into digital financial services. Prior to this, Lubna was working as a consultant with FinSurgents, where she led the ‘Framework for rooting FinTechs in Pakistan’ study.
