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Article
Publication date: 20 May 2020

George Okello Candiya Bongomin and Joseph Mpeera Ntayi

Drawing from the argument that mobile money services have a significant potential to provide a wide range of affordable, convenient and secure financial services, there have been…

2396

Abstract

Purpose

Drawing from the argument that mobile money services have a significant potential to provide a wide range of affordable, convenient and secure financial services, there have been rampant frauds on consumers of financial products over the digital financial platform. Thus, this study aims to establish the mediating effect of digital consumer protection in the relationship between mobile money adoption and usage and financial inclusion with data collected from micro small and medium enterprises (MSMEs) in northern Uganda.

Design/methodology/approach

To achieve the main objective of this study, a research model was developed to test for the mediating effect of digital consumer protection in the relationship between mobile money adoption and usage and financial inclusion. The data were collected from MSMEs and structural equation modelling in partial least square (PLS) combined with bootstrap was applied to analyze and test the hypotheses of this study. The direct and indirect effect of mobile money adoption and usage on financial inclusion was tested through digital consumer protection as a mediator variable.

Findings

The findings from the PLS-structural equation modelling (SEM) showed that mobile money adoption and usage has both direct and indirect effect on financial inclusion. Moreover, financial inclusion is influenced by both mobile money adoption and usage and digital consumer protection.

Research limitations/implications

The study used partial least square (PLS-SEM) combined with bootstrap confidence intervals through a formative approach to establish the mediating effect of the mediator variable. Hence, it ignored the use of covariance-based SEM and the MedGraph programme. Furthermore, data were collected from samples located in Gulu district, northern Uganda and specifically from MSMEs. This limits generalization of the study findings to other population who also use mobile money services.

Practical implications

Promoters of digital financial services, managers of telecommunication companies, and financial inclusion advocates should consider strengthening the existing digital consumer protection laws on the mobile money platform. A collaborative approach between the mobile network operators, financial institutions and regulators should tighten the existing laws against mobile money fraudsters and an efficient mechanism for recourse, compensation and remedy should be set up to benefit the victims of frauds and cybercrime on the Fintech ecosystem.

Originality/value

The current study gives a useful insight into the critical mediating role of digital consumer protection as a cushion for promoting financial inclusion through mobile phones over the Fintech that face great threat and risk from cyber insecurity.

Details

Digital Policy, Regulation and Governance, vol. 22 no. 3
Type: Research Article
ISSN: 2398-5038

Keywords

Article
Publication date: 20 September 2021

George Okello Candiya Bongomin, Francis Yosa and Joseph Mpeera Ntayi

Mobile money is a service in which the mobile phone is used to access financial services. Thus, the mobile money platform should be user-friendly with hedonic features that are…

Abstract

Purpose

Mobile money is a service in which the mobile phone is used to access financial services. Thus, the mobile money platform should be user-friendly with hedonic features that are attractive and pleasurable to the users. The main purpose of this paper is to establish the mediating effect of hedonism in the relationship between mobile money adoption and usage and financial inclusion of micro small and medium enterprises (MSMEs) in Uganda.

Design/methodology/approach

This study reports interesting findings by using data obtained from MSMEs located in northern Uganda. The structural equation and measurement models were generated in analysis of moment structures (AMOS) to answer the hypotheses of this study.

Findings

The findings suggest that including hedonism in the model improves mobile money adoption and usage by 12.7 percentage points in order to promote financial inclusion of MSMEs in Uganda. Hedonism is found to affect mobile money adoption and usage, which in turn influences financial inclusion.

Research limitations/implications

This study used cross-sectional data to document the mediating effect of hedonism in the relationship between mobile money adoption and usage and financial inclusion. The study analyzed mobile money adoption and usage, hedonism, and financial inclusion from the MSMEs owners' perspective. Future research could use relevant longitudinal data to verify multiple benefits of hedonism in enhancing mobile money adoption and usage as well as other potential digital financial technologies.

Practical implications

This study categorically informs mobile telephone network operators and inventors of mobile money applications to invest more in developing pleasurable and user-friendly mobile money features that can attract more users. The digital financial services' application developers should design user-friendly mobile money applications that suit the needs of all users. This requires careful understanding of diverse attractive features of mobile money services.

Originality/value

This study offers direction to developers of mobile money applications to design pleasurable and user-friendly mobile money platform with features, which are attractive to the different users. Particularly, it highlights the role of hedonic motivation in promoting adoption and use of mobile money technology to increase the scope of financial inclusion of MSMEs in a developing country like Uganda. Indeed, the novelty in this paper is grounded on a blend of financial technology and psychology to promote financial inclusion in under developed economies.

Details

International Journal of Social Economics, vol. 48 no. 11
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 7 November 2019

George Okello Candiya Bongomin, Pierre Yourougou and John C. Munene

Premised on the assertion that financial digitalization is currently the panacea and game changer in delivering progress towards the sustainable development goals (SDGs) through…

1605

Abstract

Purpose

Premised on the assertion that financial digitalization is currently the panacea and game changer in delivering progress towards the sustainable development goals (SDGs) through universal financial inclusion, especially in developing countries, the purpose of this paper is to establish the moderating effect of transaction tax exemptions in the relationship between mobile money adoption and usage and financial inclusion.

Design/methodology/approach

A semi-structured questionnaire was used to collect data from 379 micro, small and medium enterprises (MSMEs), which use mobile money services drawn from the Northern District of Gulu in Uganda to provide responses for this study. The predictive relevancy and the effect size of the model were determined by running partial least square algorithm through structural equation model (SEM) with 5,000 bootstrap samples in SmartPLS-SEM 3.0.

Findings

The findings indicated that all the latent variables of transaction tax exemptions showed significant and positive impact on mobile money adoption and usage to advance financial inclusion in developing countries. Moreover, when combined together, the overall SEM predictive model revealed a significant moderating effect of transaction tax exemptions in the relationship between mobile money adoption and usage and financial inclusion. This implies that transaction tax exemptions on digital financial innovations such as the mobile money services can stimulate economic growth through increased level of financial inclusion labeled as the main enabler in achieving the SDGs by the year 2030.

Research limitations/implications

Whereas data were collected from users of mobile money services, the samples were drawn specifically from MSMEs’ owners located in the Northern District of Gulu in Uganda. Thus, users located in other districts were not included in the sample for this study. Similarly, this study limited itself to only financial services offered through the mobile money platform. It ignored other digital financial channels such as the internet and electronic banking.

Practical implications

Going forward, in order to improve the economic well-being of households at the “bottom of the pyramid,” governments in developing countries should embrace the significant role of transaction tax exemptions in promoting digital financial innovations such as the mobile money services for increased level of financial inclusion. The governments in developing countries where mobile money has greatly spurred financial inclusion should not only reduce the existing transaction taxes on mobile money services but scrap it off in order to champion progressive increase in the level of universal financial inclusion prescribed as a key enabler in eliminating global poverty, especially in developing countries.

Originality/value

This study hints on the moderating effect of transaction tax exemptions in the relationship between mobile money adoption and usage and financial inclusion. The paradox in the current trends on transaction taxes on mobile money services, especially in developing countries remain a dearth in the nascent global FINTECH ecosystem.

Details

Journal of Economic and Administrative Sciences, vol. 36 no. 3
Type: Research Article
ISSN: 1026-4116

Keywords

Article
Publication date: 3 October 2019

George Okello Candiya Bongomin and Joseph Ntayi

Recently, a large body of research has been devoted on the role of trust in shaping different types of transactions, especially in rural financial development. Trust is a set of…

1580

Abstract

Purpose

Recently, a large body of research has been devoted on the role of trust in shaping different types of transactions, especially in rural financial development. Trust is a set of expectations shared by all those who engage in an exchange. Indeed, the “rule of the game” suggests that no trusting party in a transaction should act opportunistically. Consequently, this study aims to establish the mediating effect of trust in the relationship between mobile money adoption and usage and financial inclusion of MSMEs in developing countries with a specific focus on rural Uganda.

Design/methodology/approach

A quantitative survey-based study was used and responses obtained from 379 MSMEs located in northern Uganda were analysed using partial least square-PLS version 3.0. A semi-structured questionnaire was developed from scales and items used in previous studies referenced in internationally recognised journals to elicit responses from the MSMEs. Structural equation modelling was used to test the models to arrive at a final empirical model derived from the data.

Findings

The authors found evidence that trust enhances mobile money adoption and usage to increase the scope of financial inclusion of MSMEs in developing countries. Moreover, when individual effect was determined, trust also had significant and positive effect on financial inclusion. Thus, the study results imply that trust enhances mobile money adoption and usage to improve the level of financial inclusion of MSMEs in developing countries.

Research limitations/implications

The study used cross-sectional data to document the relationship between mobile money adoption and usage and financial inclusion and to establish the mediating effect of trust in the relationship. Future research could use relevant longitudinal data to verify other benefits of trust.

Practical implications

The results present trust as a significant factor for FINTECH financial services marketing and growth. Specifically, data privacy and effectiveness of the mobile telephone network is more likely to help consumers to bridge the gap between participation and non-participation on the mobile money platform. Customers’ data sent over the mobile network of providers should be protected from unnecessary access and usage by Mobile Network Operators (MNOs) staff and unauthorised persons and agents. Data protection protocols should be set by the MNOs to avoid unnecessary access and use of customers’ data.

Originality/value

Globally, Fintech scholars have examined the role of mobile money in promoting financial inclusion. However, there is insufficient evidence on the mediating effect of trust in the relationship between mobile money adoption and usage and financial inclusion, especially among rural MSMEs. This study invents a novel direction on the importance of trust in creating transaction efficiency by eliminating opportunism and fraud with in the Fintech ecosystem.

Details

Social Responsibility Journal, vol. 16 no. 8
Type: Research Article
ISSN: 1747-1117

Keywords

Article
Publication date: 22 August 2023

Sam Njinyah, Simplice Asongu and Sally Jones

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…

Abstract

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.

Details

Journal of Science and Technology Policy Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2053-4620

Keywords

Article
Publication date: 22 February 2021

Tapiwanashe James Museba, Edmore Ranganai and Gianfranco Gianfrate

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…

1656

Abstract

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.

Details

Journal of Enterprising Communities: People and Places in the Global Economy, vol. 15 no. 2
Type: Research Article
ISSN: 1750-6204

Keywords

Article
Publication date: 1 February 2016

Parijat Upadhyay and Saeed Jahanyan

This study makes an integrated approach in identifying the factors affecting usage intention of mobile-based payment services. Such services are being marketed aggressively by…

4554

Abstract

Purpose

This study makes an integrated approach in identifying the factors affecting usage intention of mobile-based payment services. Such services are being marketed aggressively by cellular service providers and are different from usual mobile-based banking. The study incorporates prominent factors like the technical characteristics, technology-specific characteristics, user-specific characteristics, and task-specific characteristics and others from published literature. The purpose of this paper is to highlight those factors which have significant impact on the adoption of such service so that the adoption rate can be increased.

Design/methodology/approach

A nationwide primary survey was conducted using validated questionnaire requesting response for the factors obtained from published literature. In total, 196 respondents participated in the survey. Totally, 11 hypotheses were formulated and statistically tested for their significance in context to the study. Confirmatory study was on the significant factors and a model has been proposed.

Findings

The study finds that factors like perceived usefulness, perceived ease of use, system quality, connectivity, discomfort, task-technology fit and structural assurance have significant impact on the usage intention of mobile money services whereas factors such as perceived monetary value, absorptive capacity and personal innovativeness have been found to be insignificant.

Originality/value

There have been no studies conducted which reported mobile-based transfer payment adoption issues where-in the transfer mechanism is independent of formal banking. The findings would be beneficial for service providers of mobile-based payment services to understand their subscribers and roll out value added services.

Details

Internet Research, vol. 26 no. 1
Type: Research Article
ISSN: 1066-2243

Keywords

Article
Publication date: 25 August 2020

Anthony Amoah, Kofi Korle and Rexford Kweku Asiama

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…

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

Details

International Journal of Social Economics, vol. 47 no. 10
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 28 April 2020

Raphael Odoom and John Paul Kosiba

Currently, mobile payments have become pervasive in electronic commerce and are steadily increasing in many regions worldwide. In the literature, however, its continued usage…

1396

Abstract

Purpose

Currently, mobile payments have become pervasive in electronic commerce and are steadily increasing in many regions worldwide. In the literature, however, its continued usage among consumers is deemed equivocal, particularly among small businesses. This study uses the unified theory of acceptance and use of technology (UTAUT) to examine mobile money continuance intention among micro enterprises in an emerging/less-developed economy. This study aims to explore the mediating role of agent credibility on this relationship, given that these agents are contingent actors between service providers and mobile money users.

Design/methodology/approach

After a preliminary qualitative enquiry, quantitative data collected from 584 micro enterprises were tested from the UTAUT perspective, using structural equation modelling.

Findings

Findings from the study establish the applicability of the UTAUT in explaining the antecedents, motivations and continuance intention of mobile money usage among micro enterprises. Further, beyond their direct effects, the UTAUT conditions have indirect effects on the continuance intention through their effect on perceived agent credibility.

Originality/value

The findings provide evidence to issues of research and managerial interest, offering insightful implications to the academic and practitioner communities, respectively.

Details

Journal of Systems and Information Technology, vol. 22 no. 1
Type: Research Article
ISSN: 1328-7265

Keywords

Article
Publication date: 25 July 2019

Richard Glavee-Geo, Aijaz A. Shaikh, Heikki Karjaluoto and Robert Ebo Hinson

The purpose of this paper is to examine the drivers of consumer engagement and its consequences via the experiences of mobile money services’ users in Ghana and to discuss its…

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Abstract

Purpose

The purpose of this paper is to examine the drivers of consumer engagement and its consequences via the experiences of mobile money services’ users in Ghana and to discuss its implications for the society, financial service innovation, delivery and operations.

Design/methodology/approach

A pre-tested survey instrument was used with a sample of 595 mobile money services users in Ghana. SmartPLS application was used to analyze the data and report findings.

Findings

The study shows that perceived risk, consumer empowerment, subjective norm, performance expectancy and effort expectancy influence the affect component of consumer engagement and explain around half of its variance. The effect of perceived risk on consumer engagement was counterintuitive. Perceived risk was significant and positive for cognitive processing, whereas the effect was significant but negative for affect. The authors found support for the positive effect of cognitive processing on advocacy intention but no support for its effect on continuous usage. By contrast, affect strongly influenced both advocacy intention and continuous usage of mobile money services.

Practical implications

The authors highlight the implications of mobile money services to business and marketing/service managers, policy makers, non-banking entities (such as telecoms and financial technology firms) and to the society in general. The authors provide important insights into how service providers can manage consumer engagement process and formulate marketing strategies to target and promote this simple, but innovative service to consumers. Moreover, the authors discuss the societal implications of the study in Ghana, a developing country. The authors recommend several options for future studies in order to stimulate the research agenda on mobile financial services in general.

Originality/value

The present study shows that although mobile money was initially introduced to help consumers who hitherto have no access to formal banking services, this form of banking has become increasingly popular among various consumer segments as its usage and adoption has increased multifold largely in emerging and developing countries. The main contribution of this study is the development and testing of the “mobile money customer engagement model.” Moreover, this study shows the key factors that influence the engagement process and the effects of these factors as analyzed within the context of a developing country.

Details

International Journal of Bank Marketing, vol. 38 no. 1
Type: Research Article
ISSN: 0265-2323

Keywords

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