Journal of Political Risk, Vol. 2, No. 1, January 2014.
María Elena Labastida Tovar, Ph.D.
Universidad Anáhuac México Norte
Almendra Ortiz de Zárate, MsC.
Universidad Anáhuac México Norte
Lilianne Isabel Pavón, Ph.D.
Universidad Anáhuac México Norte
Priscilla A. Tacujan, Ph.D.
Corr Analytics, Inc.
Abstract

Figure 1. Annual Economic Growth in Mexico, from 2005 to 2012 (in percentages). Data Source: National Institute of Statistics, Geography and Informatics (INEGI), accessed July 2, 2013, http://www3.inegi.org.mx/sistemas/mexicocifras/.
Remittance senders evaluate the costs and benefits of money transfer services. Two conditions are of paramount interest: low costs and accessibility of use for the sender and receiver. The use of mobile phones (a ubiquitous technology) for sending money, paying for services, and banking is increasingly seen not only as the best option for remittances, but the only one that can fulfill the two conditions above. Due to its ubiquitous nature, access to financial services through mobile phones is growing exponentially, expanding access to more consumers, and readily available to decrease the costs of transferring money globally. This study addresses the use of this ubiquitous technology in two emerging markets: Mexico and the Philippines. It evaluates the impact of the regulatory framework on mobile financial services to provide consumers with greater access to financial services. Continue reading