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The dawn of a mobile payment scheme: The case of Movii

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  • Carlos León

Abstract

Mobile wallets replicate physical wallets on a mobile device, in which users can store different payment instruments (e.g., cards, transfers) to make mobile payments. As the mobile wallet is adopted, a mobile payment scheme emerges, with its users as elements in a network of transfers. In this article, I study the mobile payment scheme of Movii— the first fintech firm in Colombia operating under a financial non-banking license for electronic deposits and payments. Based on a unique dataset of bilateral transfers between Movii’s mobile wallet users, I build, visualize and analyze Movii’s network, daily from November 18, 2017, to November 25, 2020. Besides the anticipated increase in the number of users and the value of transfers, the visual and quantitative complexity of the network of transfers increases over time. This increase in complexity is likely to be linked to the adoption of Movii’s mobile wallet, which results in users finding new ways to use mobile payments beyond person-to-person transfers, including person-to-business and business-to-business. Also, results suggest the Covid-19 pandemic accelerated the evolution of Movii’s mobile payments scheme. **** RESUMEN: Las billeteras móviles replican a las billeteras físicas en un dispositivo móvil, con las que los usuarios pueden utilizar diferentes instrumentos de pago (e.g., tarjetas, transferencias) para realizar pagos móviles. Con la adopción de la billetera móvil surge un esquema de pagos móviles, en el que sus usuarios son elementos de una red de transferencias. En este artículo se estudia el esquema de pagos móviles de Movii—la primera fintech en Colombia que opera bajo una licencia financiera (no bancaria) de depósitos y pagos electrónicos. Con base en una base de datos de transferencias bilaterales entre usuarios de la billetera móvil de Movii, se construye, visualiza y analiza la red de Movii, diaria, desde noviembre 18 de 2017 hasta noviembre 25 de 2020. Además del esperado incremento en el número de usuarios y el valor de las transferencias, se encuentra que la complejidad visual y cuantitativa de la red de transferencias se incrementa a través del tiempo. Este aumento en la complejidad tiene que ver con la adopción de la billetera móvil de Movii, lo cual resulta en que los usuarios encuentran nuevas maneras de utilizar los pagos móviles más allá de transferencias persona a persona, incluyendo pagos de persona a negocio y de negocio a negocio. Así mismo, es evidente que la pandemia por Covid-19 aceleró la evolución del esquema de pagos móviles de Movii.

Suggested Citation

  • Carlos León, 2021. "The dawn of a mobile payment scheme: The case of Movii," Borradores de Economia 1157, Banco de la Republica de Colombia.
  • Handle: RePEc:bdr:borrec:1157
    DOI: https://doi.org/10.32468/be.1157
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    Keywords

    Payments; mobile; networks; fintech; paytech; complexity; pagos; móvil; redes; fintech; paytech; complejidad;
    All these keywords.

    JEL classification:

    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System

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