AN EARLY ANALYSIS OF THE GOVERNMENT’S MOBILE PHONE-BASED MONEY IN ECUADOR AND ITS IMPACTS IN FINANCIAL INCLUSION

Authors Jorge MoncayoMarcos Reis

Ecuador will host the first-ever state-run electronic payment system, the so-called Electronic Money System, (Sistema de Dinero Electronico). The Electronic Money will be issued by the Central Bank of Ecuador

Means of electronic payment, managed privatively by the Central Bank of Ecuador, denominated in dollars of the United States of America pursuant to the provisions set forth in the Monetary and Financial Organic Code, that: is exchanged solely through electronic, mobile, electromechanical, fixed devices, intelligent cards, computers and others, as a result of the technological advance.

BCE

Administradores de Red

BancaPública

EntidadesFinancieras

de laEPS

BancaPrivada

OrganizacionesSociales

EmpresasPrivadas

USUARIOS

Macroagentes

Centros de Transacción

Dinero Electrónico ( BCE )

ADMINISTRADOR ( BCE )

PRIVATE BANKS

CREDIT UNIONS

GOVERMENTINSTITUTIONS COMPANIES REDES

USUARIOS

BANKS , CREDIT UNION,

COMPANIES

Backing and anchor their stores with

emoney

CHANNEL DISTRIBUTION

S

MACROAGENTS FINAL USER

CASH IN,

CASH OUT

EMONEY ACCOUNTS

Esquema Operacional

ADMINISTRADOR DEL SISTEMA

$. 9.000

$. 20.000

This system will be non-profitable and provided at a low cost. Since the administration will be made by the CBE, it will avoid compatibility issues with different systems and phone operators.

GENERIC SERVICES Electronic Money Financial Institutions

Account activation 0.00 5.38

Renewal service 0.00 1.65

Account deposit or recharge 0.10 0.27

Administration, maintenance and account management 0.5 1.63

Account inquiries 0.05 0.31

Account Withdrawal 0.15 0.45

Transfers within the same entity 0.25 0.45

Domestic consumption services 0.05 0.23

Blocking, annulment, cancellation 0.10 4.41

Electronic Money Commissions vs Financial Institutions (USD)Source: Junta Bancaria (2014)

P2P

from $0,1 a $0,99 1,5 centavos

Desde $1 a $10

2 cents

From $11 to $50 4 cents

Desde $300 hasta $2.000

10 centavos

TAXES

Costará5 cents

atm

30 cents

Comission and Fees