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Mobile money as a financial inclusion instrument: what are the determinants?

Anthony Amoah (Department of Economics, Central University, Accra, Ghana)
Kofi Korle (Department of Economics, Central University, Accra, Ghana)
Rexford Kweku Asiama (DST/NRF SARCHI Industrial Development, University of Johannesburg, Johannesburg, South Africa)

International Journal of Social Economics

ISSN: 0306-8293

Article publication date: 25 August 2020

Issue publication date: 13 October 2020

2438

Abstract

Purpose

This paper seeks to examine the motivating factors that propel people to use mobile money in the Greater Accra Region (GAR) of Ghana. The authors posit that the behaviour of a person, in terms of the choice and means of transaction, cannot be explained solely by utility-maximizing assumptions or rationality. Thus, other socio-cultural and psychological factors are crucial in determining whether a person will use mobile money.

Design/methodology/approach

This study uses a cross-sectional design to obtain primary data on 733 households from the GAR of Ghana to determine the drivers of mobile money use. Given the binary nature of the dependent variable, a logit model and its marginal effects are estimated. Furthermore, parametric and non-parametric statistical tests are used to examine gender effect and mobile money use.

Findings

The study finds that technology savvy cohorts (youthful age cohorts), available services such as phone credit recharge, education and income are among the key determinants of mobile money use in Ghana. Furthermore, parametric and non-parametric tests of mobile money use on gender show a statistically significant difference in gender use of mobile money, albeit, marginal. The findings imply that consistent use of mobile money to access social and economic services can go a long way in promoting financial inclusion, financial empowerment and general wellbeing of people.

Originality/value

Households in developing countries especially Ghana have rapidly embraced mobile money technology. However, what determines the household level of adoption, to the best of our knowledge, is unknown and yet to be tested. This study bridges that gap in the empirical literature as well as contributes to policy decisions.

Peer review

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-05-2020-0271

Keywords

Citation

Amoah, A., Korle, K. and Asiama, R.K. (2020), "Mobile money as a financial inclusion instrument: what are the determinants?", International Journal of Social Economics, Vol. 47 No. 10, pp. 1283-1297. https://doi.org/10.1108/IJSE-05-2020-0271

Publisher

:

Emerald Publishing Limited

Copyright © 2020, Emerald Publishing Limited

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