In an analysis of the current state of mobile money, I observe that despite the additional economic cost of using mobile money services instead of cash, there is still a demand for mobile money services in Kenya and Tanzania. I conduct simulations for different household types in these two countries, and that the differences in market structures and mobile money tariffs can be used to explain differences in the way that mobile money is used in both countries. Next, I conduct a study of the regulatory framework shows lack of incentives and uncertainty in understanding the market hinder the interaction of banks and Mobile Network Operators (MNOs). I propose a solution for banks to partner with MNOs to provide mobile money services and expand banking outreach.

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