Mobile money is helping millions of people without traditional bank accounts participate more fully in the economy. Still, a new study suggests that trust, fairness and effective regulation will ultimately determine whether the system succeeds in reducing poverty. With more than two billion registered mobile money accounts worldwide and nearly $1.7 trillion processed annually, phone-based financial services are becoming an increasingly important part of daily life, particularly in low- and middle-income countries.

Researchers at the University of East London reviewed more than a decade of evidence on mobile money, analysing 65 studies published between 2014 and 2026. Their findings show that mobile money can help users send and receive funds more easily, save money securely, cope with emergencies and support small business activities. The study was published in the Journal of Financial Services Marketing.

According to the researchers, mobile money has proven especially valuable as an anti-poverty tool because it expands financial access for people who are unbanked or underserved by traditional banking systems. It can reduce the cost of transferring money, improve household resilience during financial shocks, support women and rural communities, and strengthen cash flow for micro, small and medium-sized enterprises. In some regions, the benefits have been particularly striking.

The study points to evidence from Kenya, where access to M-Pesa helped lift an estimated 194,000 households out of poverty. Many of the gains were seen among female-headed households, highlighting the potential of mobile money to improve economic inclusion and opportunity for vulnerable groups. Researchers say these findings demonstrate the significant social and economic potential of accessible digital financial systems.

However, the authors caution that mobile money is not a guaranteed solution to poverty. Its effectiveness depends not only on access to mobile phones, but also on public confidence in the system, strong consumer protections and balanced regulation. They warn that excessive taxes or restrictive policies can discourage use, especially among low-income populations. In Uganda, for example, transaction taxes on mobile money were linked to a sharp decline in usage among poorer users.

Co-author Godfried Adaba said mobile money can provide people with a safer and easier entry into financial life, but stressed that access alone is insufficient without trust and supportive systems. Kirk Chang added that mobile money works best when users, service providers and regulators work together to empower communities rather than create new forms of exclusion or risk. Looking ahead, the researchers say more studies are needed to examine how taxation, fraud, artificial intelligence, regulation and emerging digital finance technologies will shape the future of mobile money.

More information: Godfried Adaba et al, Mobile money: Systematic review, multilevel framework, and research agenda, Journal of Financial Services Marketing. DOI: 10.1057/s41264-026-00370-x

Journal information: Journal of Financial Services Marketing Provided by University of East London