M-Pesa versus Western Union: Mobile banking increases competition and consumer benefits in Kenya

There economic impacts of M-Pesa, a mobile phone based money transfer system in Kenya that commenced operation in 2007.

1. M-Pesa lowers the propensity of people to use informal savings mechanisms such as ROSCAS, but raises the probability of their being banked.
2. M-Pesa causes decreases in the prices of competing money transfer services such as Western Union.
3. M-Pesa improves individual outcomes by promoting banking and increasing transfers.

Here is the full paper Isaac Mbiti and David N. Weil (2011).