Saving through the Mobile Phone: The Case of M-Pesa

In the past few years there have been attempts to mobilize savings via branchless banking models in general and the mobile phone in particular. M-Pesa in Kenya, which was originally designed as a money transfer service, is being increasingly used by clients for savings purposes. Using a selection of microfinance diaries, this paper examines how M-Pesa has successfully become a savings mechanism and changed the saving patterns of the poor. The article also makes recommendations for how mobile money applications can be designed to better suit the needs and interests of poor savers.