NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Wednesday, December 4, 2013

When a natural disaster or humanitarian emergency strikes, food is usually distributed in the form of rations given to people standing in long queues.

Getting cash and food aid to remote rural communities after a natural disaster like an earthquake or a hurricane is logistically complex, expensive and takes time.

But in recent years mobile phone technology has begun to change that, allowing aid agencies to deliver money electronically as part of their response.

Known as mobile money, electronic currency can be stored on a mobile phone and, using a personal identification number, converted into cash at designated points and transferred to other mobile phone users.