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Source: Center for Global Development | September 2011
This report presents findings from the first randomised evaluation of a cash transfer programme delivered using mobile phones. The study investigated the effect of mobile phone technology on monthly cash transfers to households in Niger that were affected by a severe drought.
Villages that received cash in this way, known as 'zap', saw benefits such as reduced costs of receiving cash, more diverse purchases and diets, and more types of crops. This, suggest the authors, is down to the zap mechanism encouraging different decision-making in the household, as well as due to lower costs and greater privacy.
They conclude that mobile transfers are a cost-effective way of transferring cash to remote rural populations, especially those with limited road and financial infrastructure, but caution that more research is needed on broader effects on the welfare of these populations.