Mobile money, financial inclusion and financial integrity: The South African case

Abstract

The usage of mobile banking and in particular, payments by means of mobile phones, has increased in recent years in South Africa, with consequent impacts from a legal and regulatory point of view. South Africa is a developing economy with a large “unbanked” sector. That is, a large segment of the population does not have bank accounts and “banking” happens through informal means. This Article deals with the legal and regulatory framework pertaining to mobile money and examines issues relating to financial integrity and financial inclusion as they present themselves in South Africa. The author states that the regulatory framework in South Africa is not entirely conducive to greater financial inclusion and argues for a better balance between the regulation of risk and access to the payment system through an enhanced implementation of a risk-based approach.