Regulating Mobile Money: A Functional Approach

Mobile payments have revolutionised access to financial services for the many living in the developing world. These platforms have had some impact on poverty, and are credited with mitigating financial shocks for households living in poverty. As they have gained greater use, the risks associated with these payment platforms have gained greater interest to regulators. This paper looks specifically at the regulation of liquidity risks posed by mobile money, and suggests a functional approach to regulation, as a opposed to importing banking regulations.