M-Pesa Mobile Money and Poverty Reduction

Summary

The M-Pesa study used geographic variation in agent rollout as an instrument for mobile money access, finding meaningful consumption gains — particularly for female-headed households, who benefited most from the ability to receive remittances and save securely. The 22% consumption gain for female-headed households was the standout finding, suggesting that financial inclusion through mobile money closes a gendered access gap. The study is methodologically influential as a model for evaluating fintech using natural variation in infrastructure rollout.

Research question

"Does access to mobile money services reduce poverty and increase household resilience to shocks?"

Methodology

Result

Positive

M-Pesa access increased per capita consumption 2%; 2% of households lifted from extreme poverty; female-headed households: +22% consumption

Evidence strength

Moderate

Quasi-experimental design; causal interpretation requires care.

Replication status

Partially replicated