Download Free Consumer Protection For Mobile Payments In Kenya An Examination Of The Fragmented Legislation And The Complexities It Presents For Mobile Payments Book in PDF and EPUB Free Download. You can read online Consumer Protection For Mobile Payments In Kenya An Examination Of The Fragmented Legislation And The Complexities It Presents For Mobile Payments and write the review.

Innovation has been at the forefront of development in Kenya, primarily through the integration of mobile telephony and retail financial services. Mobile payments have transformed the way financial services have been delivered in Kenya, through bringing a large number of 'unbanked' and 'under banked' 1 persons into the financial realm. These new technologies have almost always outpaced governments' regulatory responses to them. The lack of specific legislation in this area has consequently left the Kenyan regulatory environment open to various risks to consumers. As mobile payments comprise both banking and telecommunications activities, differing perspectives exist on the appropriate regulatory framework as well as which authority should regulate it. To enhance the potential benefits from innovations in this area, governments need to make complementary adjustments to domestic banking and financial regulations by offering specific regulation for mobile payments. In so doing, certain questions should be asked in establishing a strong consumer protection regime as the mobile payments system has brought forth new entrants and various stakeholders. Among these questions include whether the stored value held in banks by consumers is a deposit, therefore subject to bank supervision, oversight and protection. Therefore this paper discusses consumer protection as a major justification for establishing a specific and appropriate regulatory framework for mobile payments in Kenya.
Over the last ten years mobile payment systems have revolutionised banking in some countries in Africa. In Kenya the introduction of M-Pesa, a new financial services model, has transformed the banking and financial services industry. Giving the unbanked majority access to the financial services market it has attracted over 18 million subscribers which is remarkable given that fewer than 4 million people in Kenya have bank accounts. This book addresses the legal and regulatory issues arising out of the introduction of M-Pesa in Kenya and its drive towards financial inclusion. It considers the interaction between regulation and technological innovation with a particular focus on the regulatory tools, institutional arrangements and government decisional processes through the examination as a whole of its regulatory capacity. This is done with a view to understanding the regulatory capacity of Kenya in addressing the vulnerabilities presented by technological innovation in the financial industry for consumers after financial inclusion. It also examines the way that mobile payments have been regulated by criticising the piecemeal approach that the Central Bank of Kenya has taken in addressing the legal and regulatory issues presented by mobile payments. The book argues there are significant gaps in the regulatory regime of mobile banking in Kenya.
"This book will be of interest to policymakers, regulators, industry stakeholders, students and scholars interested in the regulation of innovative financial services, particularly from a consumer protection perspective"--
"This book will be of interest to policymakers, regulators, industry stakeholders, students and scholars interested in the regulation of innovative financial services, particularly from a consumer protection perspective"--
Consumers continue to rely heavily on their phones to complete such tasks as transferring funds between banks or accounts, depositing or withdrawing funds, paying bills, and purchasing items. Mobile money users are oftentimes more financially resilient and can protect themselves better against economic and other shocks. Moreover, mobile money can increase the velocity of money in circulation because it reduces the transactions and time costs of making retail payments. As such, understanding the impact of mobile payments is imperative for businesses and the economy. Impact of Mobile Payment Applications and Transfers on Business is a pivotal reference source that provides vital research on mobile money transfer and its impact in social, corporate, and micro- and macro-policies concerning the aggregate economy and individual households as a whole within an economy. It covers the impact, innovations, business-to-business transformations, regulatory framework, challenges, and ethical issues surrounding mobile money transfers around the world. This book is ideally designed for economists, financial analysts, business managers, leaders, scholars, practitioners, researchers, and students in fields that include management, finance, economics, commerce, and leadership.
Based on author's thesis (doctoral - University of Warwick, England, 2014) issued under title: Mobile payments systems in Kenya: a new era or a false dawn?: an examination of the legal and regulartory issues arising 'post' financial inclusions.
There is a widespread demand among businesses for more convenient and reliable international payment products, and inevitably this has led to calls for more predictable and consistent regulation of these products, especially in the light of such innovations as online payments and ‘stored value’ cards. Recognizing that recurring risks tend to be dealt with in similar ways by most legal regimes, this study – the first of its kind – draws on a detailed analysis of the strengths and weaknesses of existing regimes to develop an international model which incorporates both the legal elements and their practical application. In building his model, the author addresses the fundamental questions in the law of payment services: Who bears the risk of unauthorised payments? What must be done about claims of error? When are payments completed so that they discharge the underlying liability? When can payments be reversed? These issues are examined through in-depth descriptions of payment facilities as regulated in five key jurisdictions – Australia, the United Kingdom, the European Union, Singapore, and the United States – under the headings of scope, licensing, disclosure, obligations of the parties, liability, redress, and dispute resolution. The five regimes are further measured against the key harmonization project in this field, the UNCITRAL Model Law on Credit Transfers. The discussion is illustrated with analyses of leading cases and a number of worked examples. In summary, this very useful book synthesizes a logical and useful package of regulatory measures into a model that takes into account the lessons learnt in the regulation of payment services. Businesses will warmly welcome the study’s contribution toward reducing the cost of taking a product to market across multiple jurisdictions. Policymakers and legislators will find the task of comparing the various approaches to payment services regulation and analyzing their effectiveness greatly facilitated.
This paper examines oversight issues that underlie the potential growth and risks in mobile payments. International experience suggests that financial authorities can develop effective oversight frameworks for new payment methods to safeguard public confidence and financial stability by establishing: (i) a clear legal regime; (ii) proportionate AML/CFT measures to prevent financial integrity risks; (iii) fund safeguarding measures such as insurance, similar guarantee schemes, or “pass through” deposit insurance; (iv) contingency plans for operational disruptions; and (v) risk controls and access criteria in payment systems. Such measures are particularly important for low-income countries where diffusion is becoming more widespread.
The ubiquity of mobile phones has long promised to spell the success of mobile payment platforms -- a world in which the phone is a universal currency and no one needs plastic. While such predictions have proven mostly fruitless in the past, there is increasing evidence that the next few years may bring a fundamental shift towards mobile payment systems. The emergence of mobile payments promises substantial benefits for consumers. In the developed world, where the market for mobile telephony is mature, mobile payment systems have the potential to upset the existing balance between merchants and payment companies and provide new conveniences to consumers. For instance, m-payments may give merchants more ability to interact directly with the consumer, through in-store promotions and rewards that are delivered directly to the mobile device. In developing countries, the explosive growth of mobile payment systems demonstrates the potential for such systems to transition unbanked and poor communities into mainstream financial services. Along with the hype accompanying this trend, some caution may be warranted. The shift to mobile payments has enormous implications for privacy, as unregulated entities, or businesses traditionally regulated under some other sectoral scheme, such as telecommunications, will have access to increasing amounts of financial and transactional data once only held by banks and transaction processors. In addition, regulators charged with overseeing mobile payment platforms face the challenge of identifying a framework that effectively regulates nonbank entities -- ones without the culture or deep experience with security found in other sectors -- that are nevertheless offering financial services bordering on those provided by traditional banking institutions.Ensuring an adequate level of consumer safeguards while allowing for experimentation and innovation in a burgeoning industry was the topic of a conference that we helped organized with colleagues from the University of Washington School of Law entitled, Mobile Payments: Global Markets, Empowered Consumers and New Rules? This article summarizes the consumer protection and innovation issues raised by mobile payments and discussed at the conference.
This paper discusses the impact of the rapid adoption of artificial intelligence (AI) and machine learning (ML) in the financial sector. It highlights the benefits these technologies bring in terms of financial deepening and efficiency, while raising concerns about its potential in widening the digital divide between advanced and developing economies. The paper advances the discussion on the impact of this technology by distilling and categorizing the unique risks that it could pose to the integrity and stability of the financial system, policy challenges, and potential regulatory approaches. The evolving nature of this technology and its application in finance means that the full extent of its strengths and weaknesses is yet to be fully understood. Given the risk of unexpected pitfalls, countries will need to strengthen prudential oversight.