Mobile Money Usage Research Articles

Parametric Analysis of Mobile Money Adoption and Women Financial Inclusion in Kogi State - Nigeria

An ever-increasing body of research and empirical evidence has demonstrated the positive impact of mobile money on individuals, households and businesses, especially in Sub-Saharan Africa, where there were almost 400 million registered accounts at the end of 2018. Mobile money reduces transaction costs for users and helps households to better manage their cash flows; it allows firms to invest and build capital over time, fostering the creation and expansion of business; and it facilitates faster and more efficient government transfers. These benefits have enabled many mobile money users to realise significant quality of life improvements. However, the impact of mobile money on women financial inclusion has not been fully analysed or investigated. To address this evidence gap, this study assesses the impact of mobile money across twenty-on (21) local governments areas of Kogi state - Nigeria. Something which, to our knowledge no previous study has done. This study explores the parametric effect of mobile money on women financial inclusion using cross-sectional data collected from 400 women across twenty-one LGAs of Kogi state in Nigeria. The probit regression results illustrate that mobile money is significant and positively related to women financial inclusion in Kogi state. In addition, economic activity positively plays a significant role in improving women financial inclusion, while gender discrimination and family financial resilience inversely reduces women financial inclusion in the state. Based on these empirical results, this study recommends the following. First, it is important that government at all level devise means to ensure and broaden usage of mobile money by of provision of communication networking, and internet services, especially in rural areas. This will go a long way in aiding and increasing individuals’ usage of mobile phone and money, hence promotion of financial inclusion among women. Secondly, there is need to enhance women economic engagement, most especially in the rural areas. This will boost their financial transactions, savings, and financial stability, thus stimulate their financial inclusion. Thirdly, while it may be unrealistic for gender equality but there is need to enforce gender discriminating law to give women sense of belonging and full participation to thrive their financial inclusion. Lastly, government at local level are also advised to increase and ensure financial stability and support families in building financial resilience. This can increase women financial inclusion.

The Impact of Mobile Money on Perception about Cash and Financial Inclusion: Micro-Level Evidence from Uganda

The debate about the future of cash has recently intensified as technology innovations in the financial sector accelerate digital payments and the creation of new, digital forms of money. Several countries have embraced initiatives towards cashless or cash-light payments. In Sub-Saharan Africa (SSA), mobile money has dominated the list of digital payment innovations. These innovations hold the potential to alter individuals’ behaviour towards cash. Will mobile money render cash less dominant in Africa? Can it promote financial inclusion? We address these questions by exploring individual-level data for Uganda, a country in an African region that pioneered the mobile money revolution in the world. We use the Propensity Score Matching method to robustly compare mobile money users and non-users across various indicators that capture individuals’ perceptions about cash, and the extent to which they remit, save, and borrow money. We present the first evidence that mobile money users, compared to non-users, are more likely to perceive cash as risky and less likely to prefer carrying large amounts of cash. We also confirm that mobile money users are more likely to receive and send remittances, save, and borrow. They also save and borrow larger amounts. The estimation methodology used in the paper, robustness analysis, and a falsification test help reduce potential concerns about selection bias and reverse causality. Two implications emerge from the findings. First, the rapid expansion of fintech technologies in Africa is likely to reduce, although slowly, the demand for and usage of cash over time. Second, the expansion of fintech technologies could help promote financial inclusion in Africa

Disaggregated behavioral responses to willingness‐to‐pay for the electronic levy in Ghana

AbstractThis study investigates the disaggregated behavioral responses of mobile money users' willingness to pay for electronic levy payments in Ghana. We use cross‐sectional survey primary data and a probit regression estimation technique with its associated average marginal effects and check robustness with a linear probability model. The evidence from the study indicates that the disaggregated behavioral factors that drive willingness to pay for the e‐levy include individuals maintaining their current levels of electronic fund transfers, the intention to increase their electronic fund transactions, and intention to stop using electronic fund transfers that attract the e‐levy. Beyond the disaggregated behavioral responses, psychological (e.g., trust in government) and socioeconomic factors (individual income and gender) are identified as important drivers of willingness to pay for the e‐levy. We suggest that policies around e‐levies must not only focus on individual behavioral responses alone, as the drivers include behavioral, psychological, and socioeconomic factors.Related ArticlesAdegboye, Alex, Kofo Adegboye, Uwalomwa Uwuigbe, Stephen Ojeka, and Eyitemi Fasanu. 2023. “Taxation, Democracy, and Inequality in Sub‐Saharan Africa: Relevant Linkages for Sustainable Development Goals.” Politics & Policy 51(4): 696–722. https://doi.org/10.1111/polp.12547.Lachapelle, Erick, Thomas Bergeron, Richard Nadeau, Jean‐François Daoust, Ruth Dassonneville, and Éric Bélanger. 2021. “Citizens' Willingness to Support New Taxes for COVID‐19 Measures and the Role of Trust.” Politics & Policy 49(3): 534–65. https://doi.org/10.1111/polp.12404.Shock, David R. 2013. “The Significance of Opposition Entrepreneurs on Local Sales Tax Referendum Outcomes.” Politics & Policy 41(4): 588–614. https://doi.org/10.1111/polp.12028.

Assessing the Impact of e-Levy on Perceived Value and Customer Satisfaction of Mobile Money Innovation in Ghana

The study examines the effect of e-levy on the perceived value and customer satisfaction of mobile money innovation in Ghana. The study employed a quantitative approach using a sample of 500 mobile money users across the Greater Accra metropolis. The study utilized structural equation modeling (SEM) to conduct explorative factor analysis (EFA), confirmatory factor analysis (CFA) and hypotheses testing to generate the results of the study. The study found a significant positive relationship between perceived value and customer satisfaction. However, e-levy negatively moderates the relationship between perceived value and customer satisfaction. The study is the first of its kind to investigate the role of e-levy on user perceived value and customer satisfaction from a marketing perspective within a specific industry context. The study offers managers of mobile money service providers a helpful guidance for developing and implementing policies that increase customer satisfaction and business sustenance.

Mobile Money and African Banking System

With the development of financial technology, there has been a new payment method, that is, without a bank card, only a SIM card can be used through mobile phones for bank transfers and remittances, which is called mobile money. The rise and popularity of mobile money in various African countries is worthy of our attention because Africa is the region with the highest rate of mobile money usage. So, what kind of impact will the rise of mobile money have on the development of local mobile banks? We need to find out. Whether mobile money has become a competitor of mobile banks, we need to analyze through empirical analysis.

Mobile Money Use, Digital Banking Services and Velocity of Money in Ghana

Investigating the correlation between digital financial services, mobile money usage, and money velocity in Ghana, the study analysed time series data spanning from 1992 to 2022. A composite index was constructed by principal component analysis using data extracted from the world development indicators, with the components mobile money usage, digital financial services, and velocity of money. The estimation utilised an impulse response function and vector error correction model; the results indicated that mobile money, digital financial services, and money velocity are related in both the short and long term. Furthermore, the application of a standard deviation innovation to the velocity of money produced increases of both positive and negative magnitude for all the variables. This suggests that mobile money, digital banking services, and velocity of money in Ghana are interdependent in an asymmetric manner. In order to facilitate an increase in the velocity of money, the research concluded that policymakers should guarantee that a greater proportion of the population has access to mobile money and digital banking services. In addition to promoting mobile money, online banking services, and digital payment methods on purpose, the government should reduce reliance on physical currency and expedite the circulation of money. It is recommended that future longitudinal studies involving African nations employ diverse estimation techniques.

Inclusive human development effect of financial inclusion in sub‐Saharan Africa: A gender perspective

AbstractThis paper investigates the effect of financial inclusion on inclusive human development in a panel of 35 countries in sub‐Saharan Africa for the years 2011, 2014 and 2017 from a gender perspective. Different methods, including fixed effect and random effect models, Tobit and quantile regressions, are used for the estimates. We find that financial inclusion improves inclusive human development. In addition, the effect of women's financial empowerment is stronger than that of men. Moreover, we find a complementary effect of financial account ownership and mobile money usage in the achievement of inclusive human development. Furthermore, the increasing effects of financial inclusion are greater in countries with lower inclusive human development than those with higher inclusive human development. African governments should therefore improve financial inclusion, particularly female financial inclusion, to achieve higher inclusive human development.

From expanding financial services to tackling poverty in West African Economic and Monetary Union: The accelerating role of mobile money

AbstractThis paper aims to assess the accelerating role of digital technology in fighting poverty through financial inclusion in the countries of West African Economic and Monetary Union (WAEMU). Based on a sample of the adult population from the World Bank's Findex database, we estimate a recursive bivariate probit model that addresses endogeneity. The findings show that the regular usage of mobile money as well as the purpose of mobile money usage including saving, borrowing, remittance and their combinations increase diversely and significantly the probability of short‐term poverty alleviation in WAEMU. In addition, the change in poverty status can be indirectly due to certain driving factors of mobile money usage including mainly the ownership of mobile phones.

Effect of the Usage of Mobile Money Services on Smallholder Rural Households` Welfare in Oyo State, Nigeria

The study assessed the effect of the usage of mobile money technology on the welfare of smallholder household farmers in Oyo State, Nigeria. Primary data was used to achieve the study objectives. The data was collected through the use of structured questionnaire. A three stage sampling technique was used in selecting the sample for the study. A total number of 120 smallholder farmers across the selected villages in Oyo State, Nigeria were selected. The study utilized descriptive and inferential statistics in its analytical technique. The result of the study revealed that mobile money service were used for airtime purchase, fund transfer, purchase of farm inputs, bill payment, savings, cash withdrawal, remittance and payment of farm workers. The empirical results of the study show that the determinants of the usage of mobile money service by the respondents include age, gender, years of education and access to credit. The results of the effect of mobile money service usage on food security revealed that mobile money service usage, age, gender, years of formal education and access to credit significantly influenced food security in the study area. Also, Mobile money usage, age, household size represented by adult equivalent, access to credit and distance to the nearest banks were factors that significantly influenced household expenditure. The study concluded that usage of mobile money service significantly affect household welfare of farming households in the study area. These results suggest that access and usage of mobile money service can help to improve smallholder farmers` household welfare.

Empowering mobile money users: The role of financial literacy and trust in Vietnam

While other countries have implemented mobile money very early with promising results, Vietnam, a bank-based country, only started the pilot implementation in November 2021. By the end of the pilot period, the percentage of people with mobile money accounts still needs to reach expectations. In this respect, our study focuses on financial literacy and perceived trust by analyzing consumers' intention to use mobile money. The results of the analysis show that six factors affect the intention to use mobile money, including (1) Perceived Usefulness, (2) Perceived Ease of Use, (3) Perceived Risk, (4) Perceived Value, (5) Financial Literacy, and (6) Perceived Trust. Although perceived trust does not have the most decisive direct impact, it plays a mediating role in promoting the intention to use mobile money. Perceived Trust helps users significantly increase their perceived usefulness and intention to use. Perceived Trust also indirectly increases the Perceived Value in the intention to use mobile money. In addition, the newly constructed financial literacy factor also significantly impacts the intention to use mobile money. The research results help clarify the role and mechanism of perceived trust in the intention to use mobile money. At the same time, it helps managers consider increasing the capacity of mobile money through perceived trust and financial literacy in a country where the banking system has been relatively expanded.

The influence of the mobile money payment on the performance of small and medium enterprises in Somalia

This study examines the influence of mobile money payment on the performance of small and medium enterprises in Somalia. A cross-sectional research design is used to explore the relationship between mobile money and business growth. Cross-sectional data collected from sample 385 business enterprises in Somalia was studied while descriptive and analytical methods were used to analyze the data. The Generalized Linear Model was employed to estimate the association between the variables of interest.This study found that mobile money promotes business growth, and 1 % increase in mobile money usage leads to about 11.14 % of business growth. The findings of this study indicate that mobile money services boost the performance of small and medium-sized enterprises by increasing access to finance, boosting sales growth, financing product development, and reducing operational risk. Mobile money services also help small and medium enterprises reduce knowledge asymmetries, eliminate market inefficiencies, and improve decision-making, ultimately contributing to enterprise performance.The findings of this study imply that the expansion of mobile money services can significantly benefit small and medium-sized businesses in Somalia; hence, the government and mobile service providers should promote a safe and effective mobile money system that prevents fraudulent transactions.

Does taxation of digital financial services adversely affect the financial inclusion agenda? Lessons from a developing country

Despite strong evidence of the critical role of mobile money technology in deepening financial inclusion, the impact of taxing mobile money transactions on digital and financial inclusion remains an unexplored area of research. By drawing on the Unified Theory of Acceptance and Use of Technology model, this research presents a rich insight into the determinants of mobile money adoption and the moderating effect of taxation (e-levy) on mobile money adoption. The purposive data sampling technique was employed to collect data from 287 mobile money users. The structural equation modeling – partial least square method was applied to test the hypotheses of this study. The findings show that performance expectancy, effort expectancy, social influence, and facilitating conditions significantly influence behavioral intention. Consequently, behavioral intention shows a significant relationship with the actual use of mobile money. Furthermore, regarding the moderating effect of taxation, the findings show that taxation negatively and significantly influences the actual use of mobile money. Finally, the implications of the results to tax policymakers (government) and mobile money operators have been discussed.

The role of mobile money adoption in moderating the influence of access to finance in firm performance

Purpose Africa is becoming the fastest-growing continent despite significant challenges to accessing finance and the use of technology. This paper aims to examine the direct effect of mobile money adoption on firm performance and its moderation effect by examining how it moderates the effect of access to finance on firm performance. Design/methodology/approach Quantitative data were obtained from the World Bank Enterprise Survey for Cameroon, Ivory Coast and Zimbabwe. A series of hierarchical regression analyses were done to test the hypotheses. Findings The main findings show a negative significant relationship between mobile money adoption and firm performance, while access to finance had a positive relationship. The moderation effect though positive was not significant. Research examining the effect of mobile money adoption in Africa on firm performance is limited, and existing studies have focused on the determinants of mobile money usage. By examining the direct and contingency effect on other determinants of firm performance, this research makes both theoretical and practical contributions. Theoretically, this research shows that not all strategic resources are valuable in improving firm performance. Practically, this research provides insights into how technology could be embedded into business processes for firms to benefit from such technology. Originality/value This research has complemented by the extant literature by assessing the role of mobile money adoption in moderating the influence of access to finance on firm performance.

Financial Literacy Variables in Microfinance Institutions studies: A Systematic Literature Review

The study applied a systematic literature review to explore financial literacy variables in microfinance institution (MFI) studies. Using manual content analysis, 73 studies identified variables covered in MFIs' financial literacy literature. The study revealed that the majority of scholars have assessed the role of financial literacy in promoting clients' savings, money and mobile money usage, loan repayment and investment. However, few studies focused on variables such as outreach, budgeting, interest rates and women's empowerment. In most of the reviewed studies, regression data analysis was used. The findings indicate that there is a dearth of MFI studies that use the term "financial literacy" and its sub-variables. Furthermore, there are no studies that have examined how financial literacy impacts MFI performance variables such as sustainability, profitability, efficiency, credit risk management and corporate governance. In addition, there are a few studies that link financial literacy with MFI theories. Generally, the findings indicate that variables related to financial literacy are not adequately covered in MFI studies. The study recommends the formulation of policies that promote financial literacy training for formal and informal MFIs. This is the first comprehensive systematic review to examine financial literacy variables in MFI studies.

Using a technology acceptance model to determine factors influencing continued usage of mobile money service transactions in Ghana

Investigating and exploring factors influencing the continued usage and acceptance of mobile money transaction services in Ghana. The study employed the Technology Acceptance Model (TAM) with 406 mobile money users from Ghana's Savannah and Bono regions. According to the study, perceived risk perceived cost, social influence, perceived usefulness and ease of use had repercussions on users’ attitudes which influenced users' final decision to continue to use mobile money services in Ghana. The social influence positively impacted users through social networking in pushing the adoption and continued usage of mobile money services in the study area. However, the construct of Perceived trust had a positive impact on users’ decisions resulting in their negative attitude to mobile money services.

Investigating Challenges of Mobile Money usage in the Central Business District of the Kumasi Metropolitan Assembly, Adum- Ghana

A descriptive cross-sectional design approach was deployed using a structured questionnaire underpinning the research objective to collect data from mobile money users and non-users within the Business District Centre of the Kumasi Metropolitan Assembly, Adum. The purposive random selection technique was used to choose a sample size of 59. This study seeks to investigate the challenges encountered by patrons of mobile money and examine their behaviour and attitudes towards the usage of mobile money transactions. The study identified seven (7) challenges, namely, financial, security, privacy, performance, time, convenience, and psychological, with performance, security, and privacy challenges being the most prevalent. The low transaction limits due to inadequate constant liquidity flow (cash and e-float) by agents affect consumers who wish to transact more than being offered; unwarranted delays experienced by customers and merchants due to incomplete payment process are some of the causative challenges of mobile money transaction; and invasion of privacy and defamation are among major. Fraudsters use the fear and anxiety of customers’ personal details in the hands of a third party, especially when the mobile money accounts are linked to clients’ bank accounts. The effect of inconvenience and delays in transactions are pointers to a duplicated transaction. It is recommended that service charges be lowered to their minimum rates, ensure a reliable mobile money system for consumers through system upgrades, and service providers ensure that personal details remain private to avoid consumer-driven fraud by inadvertently making pin codes known to third parties. Keywords: Global System for Mobile Communications Association (GSMA), Mobile Money, Theory of Reasoned Action (TRA), Technology Acceptance Model (TAM), Theory of Planned Behavior (TPB) and the Diffusion of Innovation Theory.

Maize Productivity and Household Welfare Impacts of Mobile Money Usage in Tanzania

This study examined the determinants and impacts of mobile money (MM) usage on maize productivity and poverty likelihood (i.e., the probability of a household falling below the international poverty line at USD 1.9 per capita per day) in the Mbeya Region, Tanzania. The analysis was conducted using the endogenous switching regression (ESR) model on data from a random sample of 1310 households selected from seven districts in the region. Results of the ESR estimation show that MM usage is strongly and positively associated with the education level of the household head, asset ownership, credit access, input access, and social networks. MM usage is also significantly associated with increased maize productivity and a reduced poverty likelihood. Farmers who chose to use MM services increased their maize productivity by about 124 kg/acre and reduced their poverty likelihood by nearly 25 percentage points, as measured by the progress out of poverty index. These findings call for a targeted approach to reaching and supporting MM usage among households with constrained access to formal financial services to increase maize productivity and reduce poverty likelihood.

Digital Customer Protection: Mediator between Mobile Money Usage and Financial Inclusion

The development of technology in the 5.0 era, marked by the increase in internet usage, currently impacts people's habits in accessing financial services, such as mobile money usage. Therefore, it aligns with the government's vision to increase financial inclusion through mobile money usage to reduce poverty. However, Yogyakarta Province is a province with a poverty rate that exceeds the national average, and it is the highest in the Java region. In this regard, digital customer protection needs to be considered because mobile money usage carries a high risk to the security and privacy of user data. Therefore, this study aims to determine the role of digital customer protection in mediating mobile money usage and financial inclusion in productive age communities in Yogyakarta. This study applies the Sobel test by Baron and Kenny and the process method by Hayes. The result of this study shows that digital customer protection significantly mediates mobile money usage towards financial inclusion partially in productive age communities in Yogyakarta Province. With these results, it is expected that all parties should work together to increase mobile money usage to reduce poverty and help the government to achieve the welfare of the community.

Improving performance, security and mobile money users' experience: a study of service design

Improving performance, security and mobile money users' experience: a study of service design

Assessing socio-demographic characteristics of FinTech users: an empirical study on mobile money in Pakistan

In Pakistan, the usage of FinTech particularly mobile money services is very poor. In addition, the socio-demographic characteristics of the mobile money users in the country has not been studied well. Therefore, this study aims to examine the socio-demographic characteristics of FinTech users, particularly the mobile money users in Pakistan. The study conducted a cross-sectional survey to collect the data at the household level. It was found that an overwhelming portion of the mobile money users in Pakistan are males (93%) while females are very few (7%) in numbers. The study also found that the majority of the respondents (67%) are from the urban locality. The study provides an insight into socio-demographic profiling of the mobile money users that might help the policymakers to design a policy to enhance the usage of mobile money services in Pakistan.