Payment rails
Mobile money
Electronic money account attached to a phone number, distinct from a bank account.
M-Pesa, MTN Mobile Money, Orange Money and Wave rest on an electronic money balance held at an operator, not on a bank account. In several countries this is the primary payment system rather than a complement to banking.
Two consequences for a payout. Per-transaction and balance ceilings are set by local regulation and are tight: a large amount must be split or routed to a bank transfer. And converting that balance into cash at an agent is an extra step, with its own tariff, which is not part of a conversion service’s fee schedule.