This is likely to be more so in the developing countries where mobile phone penetration is 8 – 10 times the penetration of the basic bank account. The lack of formal financial services infrastructure and widespread financial activity limits market exchanges, increases risks and curtails opportunities to save.
Without access to formal financial services, the households are forced to rely on informal sources that are high costs. The protection, safety and security of this important class of customers cannot be wished away. In this context, the regulators and governments can play an important role by providing an efficient infrastructure for mobile payments.