Exporting M-pesa to India no easy game

Kenya's mobile banking innovation may prove difficult to export. The African country has led the way with an SMS-based payment service called M-Pesa, which launched in eastern India last month. The government's push to give all Indians the right to banking access bodes well. But financial regulations and fierce competition may mean M-Pesa in India will face higher hurdles than its Kenyan role model.

Kenya's high number of mobile phone users, combined with inadequate banking infrastructure, has created a robust demand for mobile banking, and M-Pesa has become the dominant player since its launch in 2007. It allows mobile phone users, with or without a bank account, to deposit, withdraw, and transfer cash to one another using text messages. From 2 million users after its first year, M-Pesa now boasts 14.6 million today - equivalent to 64 percent of Kenya's adult population. It is now evolving to offer savings and loans.