Coordination & Incentive issues in Pakistan's Mobile Banking Industry

With the launch of easypaisa by Telenor Pakistan in 2009, the Pakistani market experienced its first taste of Mobile Banking services. For a population of 200 million with banking penetration as low as 18% and mobile penetration as high as 75%, the easypaisa service proved to a God send. Within a year of launch, easypaisa started seeing millions of transactions a month and exponential growth in revenue. A new industry had been born in Pakistan! This success very quickly brought in competition from other Mobile Network Operators and Banks, all racing to enter the newly created industry with the business model they thought was best. The key question though remained: who owned the customer? This book attempts to answer that question and also explores the incentive and coordination issues that came with each choice of business model.