Mobile Money Adoption Research Articles

Digitalization of cotton farming in the municipality of Banikoara in Northwestern Benin

The widespread use of mobile telephony and the internet constitutes an asset for digitalization in the agricultural sectors in Africa. Cotton being the leading export crop in Benin, this study aims to understand the determinants of the adoption of digitalization (use of digital machines, membership of a social network for information exchange, use of a mobile money account) by cotton producers in the municipality of Banikoara. In this context, a socio-economic survey was carried out with a sample of 314 producers, obtained by purposive sampling. The binary logistic regression method made it possible to identify the factors affecting the adoption of digitalization. Thus, the level of banking, the use of labor, the area of cotton sown and knowledge of agricultural information and exchange platforms had a significant impact on the use of digital machines in agriculture. Membership of a social network for information exchange between producers was influenced by the level of banking, the type of cotton grown, the strengthening of relationships with others, the risk linked to the use of digitalization and the assessment of the level of security of digitization by the producers. Finally, the level of banking, the exercise of a secondary activity and the use of labor were the significant variables in the adoption of mobile money by cotton farmers in Banikoara. However, the use of more advanced technologies such as drones and sensors was not yet a reality for these producers. This information is very useful for any project to popularize and promote these new technologies in the modernization of agriculture.

Modelling and forecasting mobile money customer transaction volumes in rural and semi-urban Malawi: An autoregressive integrated moving average spatial decomposition

Mobile money technologies in Malawi have revolutionised banking and monetary transactions across geographical barriers. Prospects of profit have drawn mobile money agents to invest in the business but find it is more profitable when substantial customers subscribe to the cash-in and cash-out facilities of mobile money. Despite the initial success, several challenges have emerged, including regulatory hurdles, network reliability issues, and the need for increased financial literacy among users. The volumes of transactions in the rural areas are observably lower compared to urban areas. This study uses Bvumbwe township in Malawi to model and forecast the discrepancy of mobile money transactions in rural and semi-urban Malawi. The study uses ARIMA modelling to understand the temporal manifestation of mobile money subscription in these localities. Using ARMA (1,1) models decomposed for the semi-urban and rural area, the study finds that the semi-urban area has a disproportionately higher and lasting volume of mobile money transactions compared to the rural area. The study also finds that mobile money transactions are more susceptible to long-lasting effects of external shocks in the rural area compared to the urban area. Intuitively, the day-to-day relationship in the transactions is also stronger in the rural area. These findings highlight the need for tailored policy interventions to enhance mobile money adoption and utilization in different geographical contexts.

Leveraging fintech mobile money to expand banks’ financial services in developing countries

Mobile money consists of payments through mobile devices using Fintech platforms. Despite the accelerated mobile money adoption in developing countries, financial inclusion levels lag those in the developed world. We unveil how disruptive Fintech can foster financial inclusion, by examining a sample of nearly 70,000 observations from 70 emerging countries in 2021. Our results indicate that mobile money and its associated epidemic effects enhance the transition to deposit and credit-based financial services if institutional conditions and banks’ financial technologies are well aligned. This suggests that non-banks’ Fintechs can facilitate the uptake of financial services provided by conventional banks.

Mobile Money Adoption in Uganda

Mobile money has gained a lot of acceptance in the Ugandan financial sector since its inception a decade ago. This is due to high mobile phone usage, especially in rural areas where branch banking is rare. The financial sector’s adoption of mobile money has enhanced financial inclusion by providing banking services to individuals previously excluded from the financial sector. Mobile money services offer a variety of financial transactions, including payment, saving, credit, and insurance, without the need to visit a banking hall. These are poverty reduction, job creation, GDP, and the development of a sound financial sector. However, despite the increased use and growth of mobile money in Uganda, it has presented the following challenges: Some of the problems undermining the future of this innovation include regulatory barriers, cybersecurity threats, compatibility questions, and consumer scepticism about digital financial services. Solving these challenges calls for cooperation between mobile money operators, regulators, policymakers, and other interested parties to foster innovation, competition, and consumer protection while enhancing the access and usage of financial services and products. This review examines mobile money adoption in Uganda. We used available data from many reputable databases, spanning the time period from 2010 to 2024. Findings suggest that in the future, mobile money in Uganda has bright prospects in terms of future trends, new uses, and improved connections with other electronic systems. New technologies like biometric identification, artificial intelligence, machine learning, and blockchain will enhance security, user experience, and other conditions that are necessary to fulfil user needs. Communication with mobile money providers, regulators, and stakeholders is a necessary step to fully benefit from these opportunities and manage the remaining challenges. Lastly, measures such as the promotion of consumer protection, availability of financial products and services, investment in technology, and constant public sensitization would go a long way towards tapping the full potential of mobile money in Uganda, as this fuels positive social and economic change in the country. Keywords: mobile money, Uganda, financial sector, cybersecurity, Gross Domestic Product (GDP)

The impact of mobile money adoption on firm innovation

Using firm-level survey data for 16 Sub-Saharan African countries, we find evidence that mobile money adoption increases firms’ innovation. Further analysis shows that mobile money fosters innovation by improving firms’ liquidity through greater access to trade credit and bank loans. Our findings suggest that policy measures to stimulate innovation in developing countries could focus on incentivizing firms to adopt mobile money.

Mobile Money Adoption and Performance of Informal Family Enterprises During COVID-19 Lockdown in Ekiti State, Nigeria

The study was carried out on family enterprises in Ekiti state during COVID-19 Lockdown: to identify socio-economic characteristics of the family enterprises; to determine the types of mobile money adopted; to determine the factors influencing the types of mobile money adopted; and to examine the effect of mobile money adopted on the performance of family enterprises during COVID-19 lockdown in Ekiti state. The study administered questionnaire on one hundred and fifty (150) respondents and retrieved one hundred (100) which was used for the analysis of this study using SPSS (Statistical Package for the Social Sciences). Findings from the study shows that majorities of the respondents had Diploma and Degree as their highest certificate. The nature of the family enterprises considered are publishing and printing, metal and aluminum fabrication, poultry and fishery farming and furniture, upholstery and carpentry, leather shoe making, graphic designer, automobiles mechanic and panel beaters, Gas seller, tailoring/fashion designer, and dry cleaners. Findings from the study further shows that the enterprises were self-started, owned through inheritance and while the remaining were acquired. The study findings show the factors that are influencing the adoption of mobile money by family enterprises in Ekiti State such as: perceived electronic fraud among the family enterprises discourages mobile money adoption; perceived ease of use of mobile money among the family enterprises encourages the adoption of mobile money; perceived low cost of service of use of mobile money among the family enterprises encourages the adoption of mobile money; perceived usefulness of mobile money among the family enterprises encourages the adoption of mobile money; low level of knowledge about mobile money (high level of illiteracy) among others. Findings further shows that mobile money adopted by the family enterprises are significantly influencing their performance in Ekiti State Nigeria. The study concluded that family enterprises considered are micro scales, and mostly adopted USSD (unstructured short messages) and mobile app including online banking as mobile money adopted by the selected family enterprises. The enterprises used the mobile money adopted for different transactions such as payment of salaries, products bought from suppliers, payment received on products/services sold/rendered to their customers. The study further concluded that the index factors considered in this study are cogent factors that are really influencing the adoption of mobile money. The study also concluded that mobile money adopted are significantly influencing the performance of the selected family enterprises during COVID-19 Lockdown in Ekiti State Nigeria.

Editorial: Multi-level socio-economic determinants of mobile money adoption in the Middle East and North Africa (MENA): introduction to the thematic collection

Editorial: Multi-level socio-economic determinants of mobile money adoption in the Middle East and North Africa (MENA): introduction to the thematic collection

Exploring the antecedent factors of continuous intention to use mobile money: insights from emerging markets

Purpose The purpose of this study is to examine the factors that may have an influence on the continuous intention to use mobile money as one of the Financial Technology (FinTech) products beyond the COVID-19 pandemic lockdown period. Design/methodology/approach This study has empirically tested the expanded post-acceptance model (Extend-PAM) and the expectation-confirmation model (ECM) to explain the mobile money adoption in Jordan. Data collected were analyzed through partial least squares–structural equation modeling (PLS-SEM). Findings The results mainly showed that the quality of administrative services and trust significantly impact confirmation and perceived usefulness. In addition, perceived security and knowledge of mobile money as one of the FinTech services significantly influence users’ confirmation and perceived usefulness. Also, usefulness and satisfaction influence continuous intention. Significant relationships were noted among confirmation, perceived usefulness, satisfaction and continuous intention to use mobile money. Originality/value This paper integrates two key theories: the expanded post-acceptance model (Extend-PAM) and the expectation-confirmation model (ECM) in the post-adoption behavior of mobile money. Therefore, this study attempts to fill a literature gap by examining the antecedent factors that influence the continuous intention to use mobile money services in the post-consumption stage.

Mobile money, food security and coping strategies in a post-conflict and fragile context: evidence from Burundi

PurposeAttaining the Sustainable Development Goal 2 (SDG2) of zero hunger continues to be a challenge in most parts of Sub-Saharan Africa. However, financial inclusion is seen as a potential pathway for reducing food insecurity among poor households. Mobile money is a financial inclusion instrument that is easily accessible to poor households and has the potential to increase the level of financial inclusion. This paper contributes to the literature by examining the determinants of mobile money adoption, its effects on household food security and the choice of coping strategies in Burundi, a post-conflict and fragile country.Design/methodology/approachUsing survey data that involved 860 households in Burundi, we adopted the Household Hunger Scale (HHS) developed under the Food and Nutrition Technical Assistance Project to measure household food security. We further employ the endogenous switching regression treatment effects model for ordered outcomes and the multivariate probit model to achieve our aims.FindingsThe results of our study reveal that the adoption of mobile money is influenced by factors such as gender, marital status, age, formal education, membership in a social network, area of residence and access to a tarred road network. Additionally, the food security status of a household was determined by marital status, formal education, social network membership, access to tarred roads, off-farm income, access to credit and land tenure security. We confirm that mobile money adoption has a significantly positive effect on the food security status of households with heterogeneity in gender and area of residence. We also find that mobile money adoption reduces the likelihood of households adopting consumption-related coping strategies.Practical implicationsThe promotion of mobile money should, therefore, be included in Burundi’s national food security policies.Originality/valueThis study contributes to the literature by providing empirical evidence on the effect of mobile money adoption on household food security and the choice of coping strategies in a post-conflict context.

Exploring how mobile money adoption affects nutrition and household food security

AbstractThis paper explores how using mobile money services affects food security and nutritional status of households in Tanzania. This study uses data obtained from three waves of the Tanzanian National Panel Surveys and the instrumental variable (IV) approach. The evidence from this paper shows that using mobile money services resulted in household's enhanced nutritional and food security status. Households' receipt of remittances is the main pathway in which using mobile money services influences the food security and nutritional outcomes among households in Tanzania.

Tricks with metrics: combining statistics for improved inference in regression analysis

. In maximum likelihood methods, the three classical tests statistics are often unreliable for inference in small samples, even under the correct model specification. In this article, I discuss how likelihood ratio and Wald test statistics can be combined to obtain highly improved parameter inference in regression models with small samples. I consider modifications obtained from both the Barndorff-Nielsen and the Lugannani and Rice likelihood approximations, and I show how they can produce highly accurate parameter inference in a general (possibly non linear) regression model with possibly non spherical disturbances. I discuss the underlying theory and provide Monte Carlo simulations demonstrating the superior accuracy of the proposed procedures over the first-order classical likelihood methods (i.e., the signed log-likelihood ratio test and the Wald test). An empirical application to a regression model of mobile money (“M-pesa”) adoption in Kenya is provided as an illustration of the usefulness of these methods in practice.

Violence and Financial Decisions: Evidence from Mobile Money in Afghanistan

Abstract We provide evidence that violence reduces the adoption and use of mobile money in three separate empirical settings in Afghanistan. First, analyzing nationwide mobile money transaction logs, we find that users exposed to violence reduce use of mobile money. Second, using panel survey data from a field experiment, we show that subjects expecting violence are significantly less likely to respond to random inducements to use mobile money. Finally, analyzing nationwide financial survey data, we find that individuals expecting violence hold more cash. Collectively, this evidence suggests that violence can impede the growth of formal financial systems.

A study of the effect of Mobile Money Services on Tax Compliance in zambia: A case of MFEZ and CBD Lusaka

The aim of this study was to assess the effect of mobile money services on tax compliance in Zambia, in the case of the Multi-Facility Economic Zone (MFEZ) and Central Business District (CBD) of Lusaka. The study objectives were first to establish the extent to which mobile money is used to pay tax to the Zambia Revenue Authority (ZRA) in Zambia. Secondly, it aimed to find out the challenges of using mobile money for tax compliance in Zambia and, lastly, explore potential measures and strategies that could be implemented to harness the potential of mobile money in augmenting tax compliance. Drawing upon both quantitative and qualitative research methodologies, this study employed surveys, interviews, and data analysis techniques to elucidate the intricate dynamics at play. Through rigorous data collection and analysis, the research aimed to provide insights into the utilization patterns, benefits, and challenges associated with mobile money in tax compliance. The findings of this study were expected to contribute significantly to the existing body of knowledge concerning mobile money adoption and its implications for tax compliance in developing economies. By shedding light on the specific nuances of the Zambian context, this research endeavored to offer actionable recommendations aimed at fostering an environment conducive to leveraging mobile money for enhanced tax compliance. From a broader perspective, this thesis aspires to not only deepen academic understanding but also offer practical implications for policymakers, tax authorities, financial institutions, and mobile money service providers in Zambia and beyond. The study established that, to a good extent, mobile money is used by taxpayers to pay presumption tax. It was also established in the study that mobile money can reduce the prevalence of cash transactions and can provide a digital trail of transactions, making it easier for governments to track and collect taxes. Using mobile money can also improve tax compliance.

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.

New policies, new behaviors: How digital taxation shapes mobile money use in Ghana

AbstractThe transition from traditional to digital payment platforms is reshaping domestic revenue mobilization, with significant impacts on sectors like agriculture, health, business, education and economy. This transition, while presenting both challenges and opportunities, has the potential to foster economic growth and boost revenue mobilization. This paper investigates how digital taxation or electronic levy (e‐levy) has shaped mobile money (MoMo) adoption in Ghana since the introduction of e‐levy on digital financial transactions. The underlying theories supporting this study include the Technology Acceptance Model (TAM), Social Norm Theory (SNT), and Expectancy‐Confirmation Theory (ECT). A cross‐sectional design was employed, and data was collected from 206 participants (mobile network subscribers) through a self‐administered online survey conducted and applied a partial least square structural equation modeling technique. The findings indicate that inherent innovativeness, the structure of the tax, and social tax compliance norms significantly influence citizens' compliance attitudes towards e‐levy in the context of a developing country. Conversely, the study found that potential taxpayers' attitudes towards e‐levy do not determine their intention to pay (actual use) e‐levy. In this respect, recommendations to drive the digital taxation agenda among government revenue agencies in developing countries are (i) continuous inherent innovativeness on the part of the government, (ii) ensuring compliance attitudes towards e‐levy, (iii) proper structuring of the tax components and (iv) ensuring ease of use of the system. These findings provide governments and revenue agencies, particularly those in developing countries, with valuable insights into citizens' behavioral change towards digital taxation on MoMo transactions. An effective convergence of the determinants discussed in this research would expedite government mobilization efforts for electronic levies and promote development.

Do mobile money services enhance business performance? An empirical analysis of Kenyan businesses

This study examines the impact of mobile money services on business performance by comparing the performance between businesses that use and do not use mobile money. The analysis empirically draws on cross-sectional data of 1001 Kenyan businesses from the 2018 World Bank Enterprise Survey. Propensity Score Matching is used to control for selection bias and variations in business characteristics. The results reveal that businesses that use mobile money services are more likely to be innovative in products and processes than non-users. However, they perform as well as businesses that do not use mobile money. The results also show that differences in business-specific characteristics such as business size, sector, location, and business obstacles significantly influence the adoption of mobile money by Kenyan businesses. Therefore, these results highlight the importance of mobile money services for Kenyan businesses with effective digital tools and support. Policy recommendations to enhance the financial mobile ecosystem and financial inclusion are discussed.

Analysis of the Determinants of Mobile Money Adoption and Use: Evidence from Togo with Simple and Multivariate Probit Approaches

Analysis of the Determinants of Mobile Money Adoption and Use: Evidence from Togo with Simple and Multivariate Probit Approaches

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.

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

PurposeThis 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/approachThis 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.FindingsThe 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/implicationsFuture 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/valueThis study contributes to understanding the role of the socio-demographic and macroeconomic determinants in promoting digital transformation through adopting MMS.