Barriers to inclusion

The Peru Model for financial inclusion is based on the creation of an ecosystem for mobile payments based on electronic money, with the aim of making formal financial services available to most of the population. It is a single platform where financial institutions, telecommunications companies and customers interact, in an innovative fashion. The innovation is twofold: in the access channel and in the product. Its success depends to a large degree on the positive network externalities that are generated. We identify three groups of potential customers of electronic money: “Early Adopters”, “Majority Adopters” and “Late Adopters”. The Peru Model hopes to minimize the perceived barriers to financial inclusion: distance, fees, documents required, security and trust in financial institutions.