everal emerging markets around the world face numerous challenges in their attempts at increasing their provision of financial services. Beginning in 2015, Peru implemented a strategy called Modelo Peru with the objective of launching a mobile money platform to reach and better serve the unbanked and underbanked. This strategy gathers financial institutions, telecom companies, and the government in an effort to achieve interoperability among these three groups and attain scale and breed competition among e-money issuers.
However, two years after the implementation of the strategy the number and value of transactions has not reached its desired level. Important challenges to succeed include investing in a wider distribution network to better reach the unbanked, and building a strong digital ecosystem that makes the platform relevant and understandable to users. These challenges require better collaboration from all parties involved as well as strong political will. Absent those, mobile financial services in Peru will remain an alternative financial service rather than a tool for financial inclusion.