Fintech in payment systems - how does mobile money challenge existing legal regimes?: A case study of Indonesia
Files
Accepted manuscript
Date
2020-12-01
DOI
Authors
Greenacre, Jonathan
Version
Accepted manuscript
OA Version
Citation
J. Greenacre. 2020. "Fintech in Payment Systems - How Does Mobile Money Challenge Existing Legal Regimes?: A Case Study of Indonesia" Banking and Finance Law Review, Volume 36, Issue 1, pp.119-133.
Abstract
Launched in 2009 and owned by PayPal, a user can deposit money from her bank account or credit card into her Venmo account. 2 A user can also transfer money to other Venmo users including friends or authorized merchants. 3 Like a bank deposit, a person can also redeem funds from her Venmo account by transferring them back into his or her bank account, or debit and/or credit card. 4 In 2018 alone, Venmo processed payments worth $62 billion, a 79% increase in 2017.5 Venmo is projected to process payments worth $100 billion in 2019.6 Mobile money provides very similar functionality to a bank deposit but does so outside traditional banking regulatory frameworks. Unbanked and low-income communities appear to benefit significantly from using mobile money, mainly because it provides an opportunity to deposit, store, transfer, and withdraw money in electronic form, which is faster and potentially safer …