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Mobile Money Adoption in East Africa: A cross-country study of best- and least-performing countries

Jensen Alnes, Karoline LU (2017) EKHM52 20171
Department of Economic History
Abstract (Swedish)
Mobile money is a digital financial innovation enabling electronic payments and transfers through mobile phones. It has proven to be a convenient, safe and cheap way for money exchange in developing countries where access to traditional banking services is limited. This thesis aims to explore why Small and Medium Enterprises in Zambia do not adopt mobile money in an otherwise well-developed region of mobile money diffusion. A two-folded approach combining an econometric analysis of cross-country firm level determinants of mobile money adoption and a qualitative assessment of the mobile money market in Zambia investigates the underlying causes of non-adoption in Zambia compared to other countries in East Africa. Earlier research indicates... (More)
Mobile money is a digital financial innovation enabling electronic payments and transfers through mobile phones. It has proven to be a convenient, safe and cheap way for money exchange in developing countries where access to traditional banking services is limited. This thesis aims to explore why Small and Medium Enterprises in Zambia do not adopt mobile money in an otherwise well-developed region of mobile money diffusion. A two-folded approach combining an econometric analysis of cross-country firm level determinants of mobile money adoption and a qualitative assessment of the mobile money market in Zambia investigates the underlying causes of non-adoption in Zambia compared to other countries in East Africa. Earlier research indicates that supplier linkages through trade credit provide demand for mobile money adoption. The results of this thesis support this claim. The thesis also shows that mobile money adoption requires continuous quality-updates of the services offered and extensive marketing towards the target groups. To improve diffusion, mobile money providers can partner with suppliers to generate a trickle-down effect along the business value chains. (Less)
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author
Jensen Alnes, Karoline LU
supervisor
organization
course
EKHM52 20171
year
type
H2 - Master's Degree (Two Years)
subject
keywords
Mobile Money, Small and Medium Enterprises, East Africa, Zambia, Adoption and Diffusion
language
English
id
8918206
date added to LUP
2017-06-29 13:41:59
date last changed
2017-06-29 13:41:59
@misc{8918206,
  abstract     = {Mobile money is a digital financial innovation enabling electronic payments and transfers through mobile phones. It has proven to be a convenient, safe and cheap way for money exchange in developing countries where access to traditional banking services is limited. This thesis aims to explore why Small and Medium Enterprises in Zambia do not adopt mobile money in an otherwise well-developed region of mobile money diffusion. A two-folded approach combining an econometric analysis of cross-country firm level determinants of mobile money adoption and a qualitative assessment of the mobile money market in Zambia investigates the underlying causes of non-adoption in Zambia compared to other countries in East Africa. Earlier research indicates that supplier linkages through trade credit provide demand for mobile money adoption. The results of this thesis support this claim. The thesis also shows that mobile money adoption requires continuous quality-updates of the services offered and extensive marketing towards the target groups. To improve diffusion, mobile money providers can partner with suppliers to generate a trickle-down effect along the business value chains.},
  author       = {Jensen Alnes, Karoline},
  keyword      = {Mobile Money,Small and Medium Enterprises,East Africa,Zambia,Adoption and Diffusion},
  language     = {eng},
  note         = {Student Paper},
  title        = {Mobile Money Adoption in East Africa: A cross-country study of best- and least-performing countries},
  year         = {2017},
}