Mobile money has just started to emerge in Western countries; however Kenyans have already been using phones for transactions for 10 years mainly through the mobile money system MPesa. This hints towards a largely ignored innovation potential residing in developing countries that can even allow them to lead the path of innovation for specific sectors. To assess the potential for developing countries to become lead markets a framework was created based on the literature of lead markets and frugal innovation, a case study on MPesa and interviews on mobile money. The framework can be used for policy makers to assess whether their domestic market is suitable for the market introduction and further development of an innovation, thereby contributing to the effectiveness of innovation policy. The lead market potential of developing countries resides mainly in their capability of redefining the fulfilment of basic needs. This research can be further improved by studying the emergence of mobile money in developed countries and its effects on mobile money in Africa can provide insight into the sustainability of developing countries as lead market potential and whether they are truly global lead markets to further improve this research.