Adoption Of Mobile Money Services Research Articles

Challenges in the Adoption of Mobile Money Services by Mobile Phone Users in Lusaka, Zambia.

Purpose: This study investigates mobile money adoption in Lusaka, Zambia, utilizing a mixed-methods approach.
 Methodology: The study employs a mixed-methods approach to explore mobile money adoption in Lusaka, Zambia.
 Findings: The study uncovers several key findings regarding mobile money adoption in Lusaka, Zambia. Convenience, ease of use, and perceived security emerge as primary motivators for adoption. Conversely, lack of understanding, perceived risk, and a preference for traditional banking methods are identified as major deterrents. Interestingly, cultural factors, such as religious beliefs, play a minimal role in adoption decisions. Demographic factors, including age, education level, and income, exhibit a complex interplay with adoption rates, with younger, more educated, and higher-income individuals generally more inclined to use mobile money.
 Unique Contribution to Theory, Practice, and Policy: The study's findings contribute to both theory and practice in the field of mobile money adoption. They highlight the predominance of practical considerations over cultural factors in technology adoption, suggesting the need for enhanced adoption models that go beyond traditional socio-economic determinants. Additionally, the study identifies technological discomfort as a significant deterrent to adoption, indicating a need for improved digital literacy and user-friendly interfaces. Furthermore, an awareness-confidence paradox is revealed, wherein increased awareness of cyber scams negatively impacts trust in mobile money security. This suggests the importance of balancing risk education with strong security reassurances. Fee perception also emerges as a hurdle, with over 60% of respondents perceiving fees as unfair, underscoring the importance of educating users on the value proposition of mobile money services. Overall, the study offers valuable insights for strategic product and service development, regulatory and policy formulation, and initiatives aimed at advancing financial inclusion and promoting economic growth in similar urban and semi-rural settings.

Challenges in the Adoption of Mobile Money Services by Mobile Phone Users in Lusaka, Zambia.

Purpose: This study investigates mobile money adoption in Lusaka, Zambia, utilizing a mixed-methods approach.
 Methodology: The study employs a mixed-methods approach to explore mobile money adoption in Lusaka, Zambia.
 Findings: The study uncovers several key findings regarding mobile money adoption in Lusaka, Zambia. Convenience, ease of use, and perceived security emerge as primary motivators for adoption. Conversely, lack of understanding, perceived risk, and a preference for traditional banking methods are identified as major deterrents. Interestingly, cultural factors, such as religious beliefs, play a minimal role in adoption decisions. Demographic factors, including age, education level, and income, exhibit a complex interplay with adoption rates, with younger, more educated, and higher-income individuals generally more inclined to use mobile money.
 Unique Contribution to Theory, Practice, and Policy: The study's findings contribute to both theory and practice in the field of mobile money adoption. They highlight the predominance of practical considerations over cultural factors in technology adoption, suggesting the need for enhanced adoption models that go beyond traditional socio-economic determinants. Additionally, the study identifies technological discomfort as a significant deterrent to adoption, indicating a need for improved digital literacy and user-friendly interfaces. Furthermore, an awareness-confidence paradox is revealed, wherein increased awareness of cyber scams negatively impacts trust in mobile money security. This suggests the importance of balancing risk education with strong security reassurances. Fee perception also emerges as a hurdle, with over 60% of respondents perceiving fees as unfair, underscoring the importance of educating users on the value proposition of mobile money services. Overall, the study offers valuable insights for strategic product and service development, regulatory and policy formulation, and initiatives aimed at advancing financial inclusion and promoting economic growth in similar urban and semi-rural settings.

An Evaluation of Factors that Influence the Adoption of Mobile Money Services by Zambain Univsersity Students. A Case of ZCAS University

Mobile money services in Zambia, like in many other African countries, have been experiencing a significant growth in their user base. According to Bank of Zambia records, the value of mobile money transactions in 2023 skyrocketed by an astonishing 52.8%, reaching a staggering K452.0 billion. This remarkable statistic serves as evidence of acceptability and adoption of digital financial services among Zambian consumers. The mobile money services were deemed to be financial services for the poor and unformalized business communities, surprisingly, with the passage of time mobile services have gained so much popularity even among the elite communities. This study evaluates the factors that influence the adoption of mobile money by Zambian university students using ZCAS-University as a case study. The research adopted a mixed method approach and used questionnaires and semi-structure interviews to collect data from a sample size of 150 students. The quantitative data was then analyzed using statistical package for social sciences while the qualitative data was analyzed using thematic technique. The findings were that students adopted mobile money mainly due to accessibility and ease of use. The study showed that they were areas where banks were better than mobile money in terms of security and professionalism, therefore, students did not adopt mobile money because it was highly better than banks but because it was more accessible. Other factors such as ease of use, perceived usefulness and affordability played a role in the adoption of mobile money in varying degrees.

Evaluation of the Factors Affecting Mobile Money Operators’ Credit Access: A Case Study of Lusaka Central Business District.

Background: The government of the Republic of Zambia had long emphasized the significance of fostering economic growth through enhanced access to financial services. However, the persistent issue of income inequality and sluggish economic expansion underscored the need for targeted interventions. In response, the emergence of Mobile Network Operators (MNOs) in the financial sector, offering a diverse range of services including credit access, represented a concerted effort to address these challenges. Despite these advancements, a comprehensive understanding of the determinants of MNOs' credit access remained lacking, particularly in the specific context of the Lusaka central business district. Consequently, the primary purpose of this study was to rigorously evaluate the various factors that influenced mobile money operators' access to credit within the Lusaka central business district of Zambia. Method: This research employed a case study research design to investigate the factors that influenced credit access for Mobile Network Operators (MNOs) in the Lusaka central business district. A mixed-methods approach was adopted, combining quantitative and qualitative data collection methods. The study's sample consisted of 125 MNOs, which were selected through a combination of simple random sampling and purposive sampling to ensure a representative cohort of respondents. This approach facilitated a holistic exploration of the various factors that impacted credit access among MNOs. Results: The study's findings highlight several key determinants of credit access among mobile money operators. Demographic factors, such as age, emerge as influential, with youths aged 20-34 demonstrating both technical proficiency and a better grasp of credit information. Education levels also prove to be correlated with mobile money service operation, as respondents with higher education levels exhibit greater ease in accessing and understanding mobile money credit services. Network availability emerges as a pivotal factor driving the adoption of mobile money services. However, a notable proportion of respondents expressed challenges in accessing credit through mobile networks. Trust and security concerns are identified as significant barriers deterring potential users from engaging with mobile money services. Conclusion: In light of the study's findings, it is recommended that comprehensive awareness programs be implemented within central business district schools. These programs aim to equip budding entrepreneurs with the knowledge and skills necessary for responsible engagement with mobile money services. By targeting the youth demographic, these initiatives seek to instil soundfinancial habits from an early age, thereby contributing to improved financial access, reduced income inequality, and enhanced economic growth in the Republic of Zambia.

Socio and macroeconomic determinants of mobile money adoption: a cross-cultural study of selected MENA and Sub-Saharan countries

Purpose This study aims to investigate the factors contributing to the low adoption rate of mobile money services (MMS) in the Middle East and North Africa (MENA) region compared to other regions. The study focussed on socio-demographic factors and macro-level determinants in several selected MENA and Sub-Saharan African (SSA) regions where MMS have been successful. Design/methodology/approach This study analysed 23 countries across MENA and SSA to establish the correlation between socio and macroeconomic factors and MMS adoption using a quantitative approach. The analysis used the generalized least square (GLS) method. Findings The study revealed that gender and income are factors that positively influence the adoption of MMS in MENA and SSA regions. Additionally, the study found that the affordability index, which measures macroeconomic indicators, correlates with MMS adoption in both regions but in an inversed way. On the other hand, political stability appears to have a positive correlation with MMS adoption in the MENA region. The correlation between the regulatory index and MMS adoption positively impacts the entire study group, although it is insignificant in the SSA region. Research limitations/implications Future studies should assess market competition among MMS providers and the psychological aspect of user adoption behaviour. Additionally, conducting a focus group discussion with stakeholders in the MMS industry can assist in uncovering potential factors contributing to low MMS adoption in the MENA region. Originality/value This study contributes to understanding the role of the socio-demographic and macroeconomic determinants in promoting digital transformation through adopting MMS.

Mobile money, child labour and school enrolment

This paper analyses the impact of household adoption of mobile money services on child labour and schooling in Tanzania. The paper uses data drawn from the Tanzania National Panel Surveys (TNPS), for the survey periods as follows: 2008/09, 2010/11, 2012/13, and 2014/15. The TNPS are national representative surveys conducted by the National Bureau of Statistics of Tanzania in collaboration with the World Bank Living Standards Measurement Study-Integrated Surveys on Agriculture (LMSA-ISA). The surveys collect detailed information on individual, household, and community-level characteristics. The panel nature of the TNPS allows for the same households to be interviewed over time. The study uses a difference-in-differences approach, and instrumental variables strategy to investigate the nexus between mobile money adoption and child labour and school enrolment in Tanzania. The findings of this study reveal a positive and significant effect of mobile money adoption on school enrolment, but a negative effect on children's labour market activities. Moreover, the study identifies heterogenous impacts across child's gender and age; and remittances receipt and education expenditure are the potential pathways through which mobile money adoption affects child labour and school enrolment. Overall, the results suggest that policies that enhance financial inclusion such as the introduction of mobile money can be effective in improving child's school enrolment and a decline in the incidence of child labour.

Factors Affecting the Adoption of Mobile Money Services in Zambia: Case of Central Bank of Zambia

Mobile money services has technologically advanced with an increase in popular usage in Africa and the rest of the world. The advancement in technology has birthed mobile money which is a new and popular service in Zambia. This study was a cross sectional study conducted to determine the influences of consumer adoption of the service. This study used a mixed research design involving both qualitative and quantitative methods (Saunders et al, 2016). The qualitative method was used to provide an explanation of various variables while the quantitative approach was used to quantify incidences in order to describe current perceptions as regards the factors influencing the adoption of mobile services. This enabled the researcher to gain in-depth information that would be used to find solutions for the research questions of the study. Purposive sampling techniques was employed to select respondents to select a sample size of 100. It is a conclusion emanating from this study that the majority of the respondent’s number of customers believed mobile money service by network operators was less costly than traditional banking and this influenced their adoption. As electronic money transfer service by network operators is becoming more prevalent, so is the level of customer service delivery thus the level of customer adoption of the service is increasing as the service is perceived not only to be convenient but a low cost service. The study recommended that Mobile network operator’s staff and officials should be adequately trained in e-banking products and services to be able to address customers’ needs and challenges. Furthermore, the network providers need to effectively package their products to ensure increased use of the service. Products and services to customers to close the seemingly knowledge gap that exists among the populace with regard to the benefits that can be derived from mobile money services. Such innovation now includes small loans which consumers can access and repay within a chosen time period.

Factors Affecting the Adoption of Mobile Money Services in Zambia: Case of Central Bank of Zambia

Factors Affecting the Adoption of Mobile Money Services in Zambia: Case of Central Bank of Zambia

Mobile Money Adoption in Africa: A Literature-Based Analysis

The study sought to assess the factors that influence the adoption of mobile money banking and financial services in Africa. Despite the growth in the mobile money industry and its potential for the future, studies suggest that mobile money banking/financial services adoption remains low across sub-Saharan Africa. This research work employed a systematic literature review methodology, specifically, a literature-based analysis for the investigation. The researcher, for the purposes of this study, identified, selected, and critically reviewed only secondary data, which refers to data that has already been collected for some other. Twenty (20) recent articles on mobile money banking/financial services and external/internal factors, modeled by various theories concerning technology/innovation adoption, were gathered from highly recognized and profiled research databases, including Google Scholar, Research Gate, Emerald (database), Elsevier (database), Pro-quest, Scopus, and Springer. From the 20 articles reviewed, analyzed, and discussed, the number of external factors that influence mobile money adoption positively or negatively is twenty (20), while the count of internal factors that influence mobile money adoption positively or negatively is eight (8). In conclusion, the external factors outnumber the internal factors, but the internal factors are more grievous and have a significant impact on the mobile money service. The results of this research work also revealed the top five external factors researchers seem to encounter in their studies. The study provides significant insight into both external and internal factors affecting the adoption of mobile money services in Africa. Keywords: Africa, Databases, Mobile Money Banking/Financial services, Systematic.

Investigating the Dynamic Relationship Between Social Distancing Restrictions and the Adoption of Mobile Money Services in the Middle East: A Panel Data Analysis

This article aims to investigate how social distancing restrictions can be a potential factor to effect on the adoption of mobile money services (MMS) using panel data from seven countries in the Middle East (Egypt, Iraq, Jordan, Morocco, Palestinian territories, Qatar and the United Arab Emirates) during the period from January to December 2020. Employing panel data analysis, the author uses various measures from the global mobile money dataset GSMA and Google Coronavirus Disease 2019 (COVID-19) Community Mobility Reports. The findings reveal that the social distancing restrictions have begun to play an essential part in the shift to cashless payment due to the epidemic and influence the adoption and use of MMS. The results also suggest that the social distancing restrictions affect consumer adoption of MMS and indirectly affect retailers. Unlike prevailing studies, this study is unique in empirically investigating the association between COVID-19 community mobility and MMS adoption. This study contributes to financial studies on MMS adoption under extreme settings.

Psychosocial factors that contribute to the adoption of mobile money services by customers: Case of the market of mobile operators in Dakar

Le mobile money représente, pour les entreprises de service en l’occurrence les opérateurs de télécommunication, une innovation incrémentale de service accessible à tous les individus via le téléphone portable. Ressortir les facteurs explicatifs de son adoption par les clients répond aux préoccupations des offreurs de services financiers mobiles, en particulier celles des opérateurs de téléphonie mobile qui ambitionnent de développer leur portefeuille clients. Au plan individuel, la théorie unifiée d’acceptation et d’utilisation de la technologie (UTAUT) a été mobilisée dans différents contextes pour prédire le comportement d’adoption d’une innovation. Grâce à une approche méthodologique mixte et à l’échantillonnage de commodité, une étude qualitative de type semi-structuré suivant une analyse de contenu thématique a été effectuée d’une part, et d’autre part un questionnaire conçu à base de Likert à 5 points a été réalisé sur un échantillon de 251 clients utilisateurs. Les résultats révèlent que, l’intention des clients à utiliser les services s’explique par la testabilité et l’utilité perçue. Quant à l’analyse de la régression logistique, les résultats montrent, d’une part, que l’offre des services du mobile money est à faible coût et d’autre part que l’intention d’utilisation et la commodité constituent les facteurs qui expliquent l’adoption des services du mobile money . Aussi, les autorités monétaires et de régulation devraient accélérer la mise en œuvre du projet d’interopérabilité afin de faciliter l’exécution des transactions financières entre les clients appartenant à différentes banques et opérateurs mobiles.

Product-specific determinants of Mobile Money Adoption: Evidence from Egypt during COVID-19

The paper aims to examine the factors affecting users’ adoption intentions of mobile money in Egypt during the COVID -19 using a binomial logit model. Our econometric estimation results show that, in general, perceived benefits, ease of use, and proximity of points of sale are the significant variables that specify the adoption of mobile money in Egypt. Moreover, socio-demographic characteristics showed different results. Women are more concerned about the perceived benefits and ease of use while men added other concerns: the time taken to conduct a transaction and the proximity to sale points. For individuals with lower income, ease of use is the primary determinant, while for those with higher income, it is the proximity of points of sale and safety, which determines the adoption of mobile money services. Finally, for young individuals, under the age of 30, perceived benefits, ease of use, and the proximity of points of sale are the main determinants of mobile money service use.

Institutional and firm-level factors for mobile money adoption in emerging markets–A configurational analysis

Mobile money is a widespread innovation throughout emerging countries. Since neither country-level institutions nor firm-level factors alone offer satisfactory explanations for mobile money's success, we draw on institutional theory to uncover how firms interact with institutions in target markets and explain the adoption of mobile money services. We perform a fuzzy-set qualitative comparative analysis on 110 mobile money services from 46 emerging countries revealing four recipes for widespread adoption. In configuration 1, providers with high market power reach high adoption–irrespective of enabling institutions–if institutional voids are large. However, configurations 2 and 3 suggest that in most cases either enabling regulation or sufficient mobile and educational infrastructure are key for successful adoption. In these three configurations, providers are part of multinational telecommunication firms operating in markets with financial market voids. Configuration 4 suggests that certain fintech firms reach high adoption rates in more developed financial services sectors because they offer a broad scope of services. We highlight the usefulness of a configurational lens for institutional theory to understand phenomena at the intersection of innovation, society, and business – especially in emerging markets with complex institutional settings.

The Impact of Perceived Risk and Trust on Adoption of Mobile Money Services: An Empirical Study in Pakistan

The Impact of Perceived Risk and Trust on Adoption of Mobile Money Services: An Empirical Study in Pakistan

Factors Influencing The Adoption And Use Of Mobile Money In Cameroon: Case Of Mobile Money Operators And Users In Buea

Mobile Money is an innovation that has transformed e-business in the Cameroonian context. This study examines the factors that enhance the adoption and use of mobile money in Buea, capital of the South West Region of Cameroon. The theoretical framework used is the diffusion of innovation. The qualitative approach is adopted, with 10 mobile money operators and 10 mobile money users interviewed using a structured interview protocol. Results show that participants prefer adopting and using mobile services because they are easy to use, convenient, readily accessible, and have less charges compared to the traditional banking system. Telecommunications companies should therefore, continue to consider less charges and bonuses as a strategy to increase penetration and adoption of mobile money services. Likewise, the instructions and language essential to effect Mobile Money operations like internet and airtime purchase should remain simple.

Customer perception of adoption and use of digital financial services and mobile money services in Uganda

Purpose This paper aims to investigate the impact of fintech, mobile money and digital financial services in Uganda and factors impacting adoption of the services. The study will also determine their social impact through financial inclusion in the Ugandan market. Design/methodology/approach This study covers the adoption and use of fintech, mobile money and digital financial services in Uganda. A case study approach was used through a survey questionnaire for 400 randomly selected participants within the Kampala region. Questionnaire was designed to measure customer perception of digital financial services and adoption including mobile money and agency banking. Findings The adoption of mobile money services is driven by mobile devices penetration and the need for access to financial products and services for the unbanked. Results support CGAP (2013) that observed that mobile money adoption was based on two key variables: social network and social interactions of the customer and a segment of customers who can be described as mobile technology leaders (early adopters). There has been positive impact on person to person transfers, grocery payments and mobile money providers have to continue to simplify the access to financial services and bring convenience to the bottom of the pyramid. And mobile money positively impacts sustainable developmental goals covering Gender Equality (SDG5), SDG 8 – Decent Work and Economic Growth; expanding financial inclusion through mobile money and SDG 10 – Reduce Inequalities. Research limitations/implications This study has limitations commonly prevalent with qualitative research, including the small size limited to Kampala and challenges of making generalisations beyond this context. Practical implications The paper might serve as a valuable source of information for government and fintech companies in developing the digital financial services ecosystem as well as for students and academics for further case studies in this area. Originality/value This paper serves as one of the first qualitative research papers concerning mobile money and digital financial services adoption, solely focused on Uganda. Its value is in its showcasing of the importance of mobile money among customers in emerging markets.

Drivers of Mobile Money Services Development in Zimbabwe

This study sought to identify the drivers of mobile money services development in Zimbabwe using Ecocash as a case study. Through purposive sampling, respondents were selected from financial institutions, regulatory bodies, customers, and agents. The research showed that in Zimbabwe the development of mobile money services is influenced by several factors such as a high mobile telephone penetration rate, a high number of unbanked people owing to poor access to traditional banking services, a lower level of internet penetration levels, customer awareness of the service because of aggressive branding, security and ease of use, and a dense networks of agents. Fast technology diffusion was also a factor that influenced the fast adoption of mobile money services in Zimbabwe. More research is needed to assess the impediments in countries where the adoption of mobile money services has not been as spectacular as in Zimbabwe or Kenya.

The pyrrhic victory of FinTech and its implications for achieving the Sustainable Development Goals: evidence from fieldwork in rural Zambia

PurposeThis study investigates the possible effect of mobile money services, which forms part of FinTech, in achieving the Sustainable Development Goals (SDGs).Design/methodology/approachThis study uses field data from the Chongwe district of Zambia. The data were collected in 2019.FindingsThe findings strongly suggest that (1) the factors that hinder access to credit and savings by the poor do not simply recede following the adoption of mobile money services and (2) that mobile money is not a silver bullet of ending financial exclusion but merely a tool which contributes to other financial inclusion strategies.Practical implicationsThis study argues that mobile money is winning the battle but losing the war – implying that the service is mainly used to transfer funds (OTC transactions) among users.Originality/valueThis is the first study to have been conducted in Zambia to assess the possible contributing effect of FinTech (mobile money) on SDGs.

Financial Inclusion in Emerging Markets Through Mobile Money – A Configurational Analysis

In the last decade, mobile money has financially included millions of unbanked people in emerging countries. However, neither country-level institutions nor firm-level strategies alone offer satisfactory explanations for mobile money’s successful and widespread adoption. We therefore analyze which combinations of firm- and country-level factors explain the successful adoption of mobile money services? We perform a fuzzy-set Qualitative Comparative Analysis on a sample of 96 mobile money deployments in 43 emerging countries. Our findings reveal four distinct recipes for success: ‘Oligopolists’, two variations of ‘Enabling Environments’, and ‘Fintechs’. Oligopolists can be successful irrespective of enabling institutions, if institutional voids are large. Two variations of enabling environments suggest that in most cases either enabling regulation or sufficient mobile and educational infrastructure are key for success. Lastly, a small group of fintechs are successful despite relatively developed financial services sector because the offer technologically sophisticated use cases. These findings provide recipes of how financial inclusion is most achievable in various combinations of firm- and country-level factors and they offer insights for policy makers regarding the necessary institutional framework. Furthermore, we contribute to theory by mobilizing institutional theory to demonstrate the ambiguous nature of institutions for firms with an inclusive business model.

Mobile money, inclusive finance and enterprise innovativeness: an analysis of East African nations

ABSTRACT This study explores the relationship between firms’ adoption of mobile money services and their innovativeness in the East African countries of Kenya, Uganda and Tanzania. We argue that the use of mobile money by firms in these countries has had a positive indirect impact on their innovativeness by reducing the credit constraints they face. Using data available from the World Bank Enterprise Surveys, we adopt a sequential modelling approach, first estimating the impact of mobile money use on credit constraints and then estimating the impact of credit constraints on binary indicators of product, process and organisational innovation. Innovation is shown to depend on whether or not the firm is credit constrained, and the probability of being credit constrained is shown to depend on the choices made about the use of mobile money. We find that the indirect impact of mobile money on innovation performance is greater for small firms than for medium or large firms.