Which companies are licensed to offer mobile money. Kyrgyzstan, morocco, mozambique, nigeria, sierra leone, and tanzania. Pdf 205kb to compete in africas diverse mobile money markets, banks must offer distinctive mobile and digital services not only in payments and deposits, but across the spectrum of financial services. The case of kenya, ghana and nigeria idongesit williams cmi, aalborg university copenhagen. This service is therefore only available to people who possess a formal bank account. Sustainable business models for the creation of mobile. Mtn to launch mobile money in nigeria with central bank okay. Its sometimes referred to as a mobile wallet or by the name of a specific service such as mpesa, ecocash, gcash, tigo pesa and many more. Mtn will today officially launch mobile money, momo, operations in nigeria, its biggest market and africas most populous nation mobile money. Here are two of the largest mobile money operators in africa and beyond.
On the contrary, depending on the maturity of a countrys financial services market, different services are more likely to prevail than others. Mobile money services are not necessarily independent from each other within the group or across groups. The impact of mobile money on monetary and financial. Research report making sense of mobile money in urban ghana. Pros and cons of mobile banking renju chandran research scholar, dept. Why mobile money transformed kenya, but failed to take off in. This paper provides insight into the lack of mobile money adoption in west africa through an information and communication technology ict study in nigeria, the largest country in west africa. This guideline addresses business rules governing the operation of mobile money services, and specifies basic functionalities expected of any mobile payment service and. Determinants of mobile banking adoption in the ghanaian.
The previous reports in this series, in 2009 and 2011, focused mainly on emerging technologies and the various types. Mpesa, mtn, orange, others lead africas mobile money. Banks are the most widely used form of financial services, formal or informal. Click the links on the tables below to display the number of subscribers and teledensity for mobile and fixed telephony services on a monthly and annual basis respectively. Exxonmobil nigeria communicates information about its businesses through various publications, brochures and reports.
Africa turns to mobile payments as a tool to curb covid19. On march 20, the west african countrys central bank directed mobile money providers to waive fees on transactions of gh. Background these guidelines address mobile money issues. Slash costs by simplifying legacy systems, taking saas beyond the cloud areas, to facilitate instant money transfers.
Alberts college, ernakulam, kerala abstract mobile banking refers to provision of banking and financial services with the help of mobile telecommunication devices. The mobile money industry has hoped to aid nigeria in meeting its financial inclusion targets but has not yet gained significant traction nor contributed much to achieving the central bank of nigerias cashless or financial inclusion policies. More widely, a facilitating regulatory environment can help unlock successful services in other m4d sectors closely aligned with economic growth and social improvement sri lanka is a good example, for which nigeria is a prime candidate. We see very different patterns of financial development in respect of mobile money. More recently, fintechs have established a solid footing in the market. Mobile money is an upshot of the conventional banking system that creates an opportunity for the financially excluded group of people.
A mobile money operator is a mobile money service provider that develops and delivers financial services through mobile phones and mobile telephone networks. Mtn to kick start mobile money in nigeria quartz africa. Regulatory impact on mobile money and financial inclusion in. The absence of agents impedes the uptake of mobile money and stifles its expansion. Bank of ghana, 2016 the figures from the table show massive growth in mobile money in the year 2016, although there has been only 6,74% growth in. Banking and payment conversion chains mobile money services are not necessarily independent from each other within the group or across groups.
It sought to quantitatively test the widespread notion that mobile money in most cases leads to financial inclusion. Mobile bankingpayments regulatory framework in nigeria. Mobile money, social capital, and financial behavior of women. Conclusively, the study established that subsequent adoption of mobile money services has an influence on the performance of smes. Mobile money has also been seen as a lifeline to a number of social and economic clusters in africa, from the increasing number of agents, growing from 100,000 agents in. Central bank of nigeria cbn responsible for regulating infrastructure required to support mobile money mandate through nigerian. Ndic issues deposit insurance guidelines for mobile money. Mobile money is regulated by cbn, but managed in conjunction with the ncc national payment system management bill and mobile money regulatory framework were released in 2009. According to a statement by the cbns director of banking and payments system department, dipo fatokun, nigeria s mobile money transactions. The activities of mobile money agents shall be guided by the provisions of the guidelines on agent banking and agent banking relationship in nigeria. The nigerian telecommunication sector challenges and. Mobile banking and mobile money adoption for financial inclusion. Mobile money started as a payment continue reading why mobile money transformed kenya, but failed to.
Mobile money is a technology that allows people to receive, store and spend money using a mobile phone. Financial inclusion in nigeria is primarily through mobile money. Why mobile money transformed kenya, but failed to take off. Regulatory frameworks and implementation patters for. Bangladesh leads fii asian countries mobile money usage, although most transactions are conducted through unregistered accounts. The nigerian telecommunication sector is the largest segment of the information and communication sector. This article compares the impact of mobile money on kenya, the largest economy in east africa, with its impact on nigeria, the largest economy in west africa and africa as a whole. Money, mobile payment, mobile banking, mobile money. Atm, atmtobank and mobiletoatm funds transfer in nigeria among others as well as increase. The main objective of the study is to examine the determinants of mobile banking adoption as a communication. People are looking for ways to make money and mobile money has made istle available for the populace to benefit from. Mobile financial services also referred to as mobile. The impact of mobile money on monetary and financial stability in subsaharan africa 1 background mobile money has helped reduce the financial exclusion gap in low and middleincome countries, particularly in subsaharan africa, which had almost 400 million registered accounts at the end of 2018.
Africa is the global leader in mobile money, which has become an important component of africas financial services landscape. Central bank of nigeria to issue these guidelines, to create an enabling environment for the orderly introduction and management of mobile money services in nigeria. Mobile money services a bank in your pocket an overview of trends and opportunities 7 their accounts and to perform transfers and payments. Mobile money services, performance, smes, eco cash, zimbabwe. The fledgling mobile money market in nigeria is about to get a major shakeup. Mobile money system in nigeria refers to the various components required to deliver mobile money to the banking and nonbanking community. Pdf users experience of mobile money in nigeria solomon. Mtn nigeria officially launches mobile money operations. The purpose of this study was to determine the relationship between financial inclusion and mobile money in ghana. Its the easiest and secure way to perform your money transfers, bill payments. Mobile money accounts are especially widespread in east africa, where 20 percent of adults reported having a mobile money account and 10 percent a mobile money account only map 2. The proliferation of mobile money services, particularly personto person transfer. Most people and small businesses in emerging economies today do not fully participate in the formal financial system. Mobile money the next wave of growth 3 mobile money the next wave of growth is the latest in a series of ey reports on developments and opportunities in the market for mobile payments and related services.
Mobile network operators mnos have dominated mobile money services in africa for the past decade. Lubua and semlambo 2017 concur and indicate that users adopt mobile money because they perceive. To learn more about the issues raised in this report or to discuss the unique challenges facing your. There were 5 live mobile money services across the region at the end of 2017, with 122million active accounts, the gsma said in its the mobile. Mobile money started as a payment continue reading why mobile money. Mobil money business is becoming more and more popular in nigeria and many more people are going into it already. Keep your cash management hasslefree with mtns efficient financial and payment services. The rise of mobile payments in nigeria it news africa. Mobile money agents represent the frontline of delivery for advancing mobile money. Mobile money continues to play a vital role in financial inclusion.
Liberias network suffers from the availability of agents dispersed around the country, particularly in rural liberia. The gsma mobile money programme is working with mobile operators and industry. The digital financial services landscape in nigeria. The study was geared towards investigating the use of mobile phones for mobile banking and mobile money services. Mobile money, social capital, and financial behavior of women s cooperatives in rural nigeria. The scope of offered services may include facilities to. Adelelouise carter abstract the internet and other electronic media have had a positive impact on the lives of individuals and businesses all over the. The digital financial services landscape in nigeria enabling. The nigerian telecommunication sector has evolved over the years to an oligopolistic market structure a small number of firms have the majority of market share. Mobile money operators typically leverage an agent network to. Mobile money systems offer a dual promise, as an engine for financial inclusion and as an emerging market business opportunity for providers. Mobile banking and mobile money adoption for financial. Mobile banking is a financial service often available in developed countries, but not in most.
Instead of paying with cash, cheque or credit cards, a consumer can use a mobile phone to pay for a. A guide to the payments and fintech landscape in nigeria. Nigeria has one of the largest telecom markets in africa. Jul 27, 2017 mobile money has also been seen as a lifeline to a number of social and economic clusters in africa, from the increasing number of agents, growing from 100,000 agents in 2011 to 1. Nov 14, 2018 the company will apply for a mobile banking license in nigeria and plans a launch of its mobile money service in africas largest economy in the second quarter of next year, its ceo said at a. This is an exhaustive list of live mobile money services in nigeria, only these companies have commercial licenses to operate mobile money services in nigeria. Subscriber data nigerian communications commission. Pdf framework for mobile money implementation in nigeria. Money that is easier to use within the sociocultural.
Onyima jude kenechi and onugu charles uchenna abstract. Promoting payment digitisation in ghana via mobile money. To bring more of nigeria s masses onto digital commerce, paga recently launched a new money transferapp that further simplifies the p2p payment process from mobile devices. The paper focuses on innovative mobile phones money and banking options in four african countries kenya, nigeria tanzania an d uganda. Mobile money, social capital, and financial behavior of. Regulatory frameworks and implementation patterns for mobile money in africa. Regulatory impact on mobile money and financial inclusion. The objective of this study was to determine what happens to socialdriven structures like cooperatives when they interface with mobile money technologies. The providers of these services and solutions shall be required to operate within the defined regulatory framework specified in this document and any other regulationguideline issued by the cbn. The corporation stated, the passthrough deposit insurance scheme is the protection provided by the ndic to mobile money subscribers, whereby the corporation insures funds that are deposited by a mobile money operator mmo in the deposit money banks dmbs. Cbn issues guidelines on international mobile money. Mobile banking could be defined as a facility which provides banking ser. Following the widespread use of mobile telephone as a means of communication in nigeria, and in recognition of its potential as a tool for financial inclusion and efficient payments system, the central bank of nigeria cbn, pursuant to its powers under section 472 of the cbn act, 2007, issued the guidelines on mobile money services in.
The mobile money industry has hoped to aid nigeria in meeting its financial inclusion targets but has not yet gained significant traction nor contributed much to achieving the central bank of nigeria s cashless or financial inclusion policies. Companies that provide mostly consumerfacing platforms web mobile bot for airtime and data purchase, fund transfers, bills payment, merchants payments, and the likes. It allows the unbanked in the rural areas and the underbanked in the urban centers to have access to financial. Mobile money access continues to be minimal but, in 2016, an slight increase was seen in registered accounts, and a larger increase was seen in awareness of mobile money providers.
The operatorcentric model, the bankcentric model, the collaborative model, the bank. Despite nigeria s population, sizeable consumer market and relatively high number of mmos when compared to other emerging markets see fig. Adelelouise carter abstract the internet and other electronic media have had a positive impact on the lives of individuals and businesses all over the world. Citation and commencement these guidelines may be cited as the bank of uganda mobile money guidelines, 20 and shall come into force on october 1, 20. Mobile money services design and development for financial. Depending on the scope of operation, a psp or a mobile money ewallet license from the cbn might be required to operate as a biller. Mtn nigeria, the countrys largest telecoms operator, has been granted a super agent license which allows it. Pursuant to its mandate of promoting a sound financial system in nigeria, the cbn hereby issues the following guidelines for mobile money services in nigeria. Please send all correspondence for the nigeria office to. Money, mobile payment, mobile banking, mobile money transfer and mobile wallet generally refer to payment services operated under financial regulation and performed from or via a mobile device mobile payment is an alternative payment method.
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