Mobile Money Sites and Subsidized Government Applications in Ecuador

Mobile money (MM) is one of the most promising equipment to enable more individuals residing in rural and marginalized communities in to the banking sector than ever before. It is often gaining popularity in developing countries for almost two decades.

However , LOGISTIK adoption continues to be more successful when governments provide incentives to early adopters. Using the Ecuadorian MM project like a case study, all of us tested if subsidized federal programs motivate more users to use MM as an alternative to cash transactions and how real estate agents behave with time in this context.

During the task, the Government subsidized MM re-homing through tax-incentives in the form of a refund in a user’s MILLIMETER account. We applied temporal examination of network representations of MM financial transactions to track the behaviour of agents through this context as time passes.

The Incentives Network captures most transactions in which the federal government gives real estate agents money back due to their usage of non-cash payments, such as MM and debit cards. This kind of network has nodes that represent macro-agents, companies and users and also the Government as well as the Central Standard bank.

We assess this network after the enactment of OLEPF, and we realize that, in the first of all spans, an important number of agents were removed as inactive. In the next spans, these providers regained their particular previous activity, and in addition they started to conduct small transactions.

In fact , the system grew from simply no transactions to over 40, 500 per 30-day span within the last 10 covers. This maximize is largely related to the introduction of the incentives. These kinds of incentives enthusiastic agents to build up e-money inside their MM accounts and then cash-out the dollars. This improved the cost of e-money in the MM bill, and this value has been developing over time.