10 Companies Chasing Innovations That Really Matter | Wired.com
In much of the developing world, credit and debit cards have never caught on, since the telecom networks needed to support their use doesn’t exist. In those same places, however, mobile phone use has exploded. In a phenomenon known as “leapfrogging,” the wires needed to power traditional card-based transactions might never get installed, since everyone will just use their phones instead.
In Kenya, mobile operator Safaricom has developed M-PESA, a way to transfer money and make microloans using text messages — no bank account required. Unlike in, say, the U.S., mobile payments have taken off in Kenya thanks to M-PESA, with millions of users. The company is working on rolling out the service to other countries where a lack of financial and technological infrastructure could cease to be a barrier to joining the 21st-century economy.
Photo: Sipa via AP Images