Mobile Money Study: West Bank & Gaza

This report summarizes findings of a study to assess the feasibility of leveraging information and communication technologies (ICT) to expand access to financial services in Palestine. In particular, it examines the use of mobile phones and Point of Sale (POS) devices to facilitate electronic financial transactions.There are restrictions on movement in Palestine due to the political situation. As a result, a system that facilitates electronic payments and minimizes cash needs would be beneficial. Branchless banking would:

• Facilitate electronic payments;
• Minimize cash needs;
• Encourage banks to offer financial services that might be cost effective for branches;
• Accelerate access to services by expanding network of access points.

Recommendations to facilitate electronic and branchless banking transactions in Palestine include:

• Support development of a national payment system that would create an inter-operable network of ATMs and POS devices;
• Create an enabling legal framework for the payment system and branchless banking;
• Ensure proper sequencing/timing;
• Analyze product design and methodology constraints that currently limit financial access;
• Build MFI sector institutional capacity.