Alberts college, ernakulam, kerala abstract mobile banking refers to provision of banking and financial services with the help of mobile telecommunication devices. Kyrgyzstan, morocco, mozambique, nigeria, sierra leone, and tanzania. 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. Mobile money, social capital, and financial behavior of women.
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. Banking and payment conversion chains mobile money services are not necessarily independent from each other within the group or across groups. Determinants of mobile banking adoption in the ghanaian. Mobile money services design and development for financial. 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. Mobile banking and mobile money adoption for financial. 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. Pdf framework for mobile money implementation in nigeria. Mobile money services are not necessarily independent from each other within the group or across groups. The case of kenya, ghana and nigeria idongesit williams cmi, aalborg university copenhagen. The digital financial services landscape in nigeria. Promoting payment digitisation in ghana via mobile money. Money that is easier to use within the sociocultural. 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.
Bangladesh leads fii asian countries mobile money usage, although most transactions are conducted through unregistered accounts. Mpesa, mtn, orange, others lead africas mobile money. Slash costs by simplifying legacy systems, taking saas beyond the cloud areas, to facilitate instant money transfers. Mobile money, social capital, and financial behavior of. 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. Subscriber data nigerian communications commission. Mobil money business is becoming more and more popular in nigeria and many more people are going into it already. This service is therefore only available to people who possess a formal bank account. On march 20, the west african countrys central bank directed mobile money providers to waive fees on transactions of gh. Mobile money agents represent the frontline of delivery for advancing mobile money. Why mobile money transformed kenya, but failed to take off.
A mobile money operator is a mobile money service provider that develops and delivers financial services through mobile phones and mobile telephone networks. Mobile money is an upshot of the conventional banking system that creates an opportunity for the financially excluded group of people. Mtn will today officially launch mobile money, momo, operations in nigeria, its biggest market and africas most populous nation mobile money. 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. Mobile money systems offer a dual promise, as an engine for financial inclusion and as an emerging market business opportunity for providers. The paper focuses on innovative mobile phones money and banking options in four african countries kenya, nigeria tanzania an d uganda. The scope of offered services may include facilities to. Despite nigeria s population, sizeable consumer market and relatively high number of mmos when compared to other emerging markets see fig. 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.
It sought to quantitatively test the widespread notion that mobile money in most cases leads to financial inclusion. Central bank of nigeria cbn responsible for regulating infrastructure required to support mobile money mandate through nigerian. We see very different patterns of financial development in respect of mobile money. On the contrary, depending on the maturity of a countrys financial services market, different services are more likely to prevail than others. Mobile banking and mobile money adoption for financial inclusion. Ndic issues deposit insurance guidelines for mobile money.
Its the easiest and secure way to perform your money transfers, bill payments. Mtn to kick start mobile money in nigeria quartz africa. Research report making sense of mobile money in urban ghana. Mobile money, social capital, and financial behavior of women s cooperatives in rural nigeria. To learn more about the issues raised in this report or to discuss the unique challenges facing your. Companies that provide mostly consumerfacing platforms web mobile bot for airtime and data purchase, fund transfers, bills payment, merchants payments, and the likes. Regulatory frameworks and implementation patterns for mobile money in africa. Exxonmobil nigeria communicates information about its businesses through various publications, brochures and reports.
Money, mobile payment, mobile banking, mobile money. Why mobile money transformed kenya, but failed to take off in. The nigerian telecommunication sector challenges and. Mobile money started as a payment continue reading why mobile money. Mobile money services a bank in your pocket an overview of trends and opportunities 7 their accounts and to perform transfers and payments. Regulatory impact on mobile money and financial inclusion. 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. 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 system in nigeria refers to the various components required to deliver mobile money to the banking and nonbanking community. It allows the unbanked in the rural areas and the underbanked in the urban centers to have access to financial. Onyima jude kenechi and onugu charles uchenna abstract.
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. 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 nigerian telecommunication sector has evolved over the years to an oligopolistic market structure a small number of firms have the majority of market share. Africa turns to mobile payments as a tool to curb covid19. People are looking for ways to make money and mobile money has made istle available for the populace to benefit from. 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. The activities of mobile money agents shall be guided by the provisions of the guidelines on agent banking and agent banking relationship in nigeria. More recently, fintechs have established a solid footing in the market. The impact of mobile money on monetary and financial. 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. Mobile financial services also referred to as mobile. Most people and small businesses in emerging economies today do not fully participate in the formal financial system.
The rise of mobile payments in nigeria it news africa. Mobile bankingpayments regulatory framework in nigeria. The absence of agents impedes the uptake of mobile money and stifles its expansion. The fledgling mobile money market in nigeria is about to get a major shakeup. Nigeria has one of the largest telecom markets in africa. The proliferation of mobile money services, particularly personto person transfer. The previous reports in this series, in 2009 and 2011, focused mainly on emerging technologies and the various types. Regulatory frameworks and implementation patters for. Banks are the most widely used form of financial services, formal or informal. The operatorcentric model, the bankcentric model, the collaborative model, the bank. Africa is the global leader in mobile money, which has become an important component of africas financial services landscape. Mtn to launch mobile money in nigeria with central bank okay.
The digital financial services landscape in nigeria enabling. Sustainable business models for the creation of mobile. 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. 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. 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. 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. 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.
Pros and cons of mobile banking renju chandran research scholar, dept. Here are two of the largest mobile money operators in africa and beyond. Conclusively, the study established that subsequent adoption of mobile money services has an influence on the performance of smes. The main objective of the study is to examine the determinants of mobile banking adoption as a communication.
Financial inclusion in nigeria is primarily through mobile money. The nigerian telecommunication sector is the largest segment of the information and communication sector. 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. Mtn nigeria officially launches mobile money operations. Mobile network operators mnos have dominated mobile money services in africa for the past decade. 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. This guideline addresses business rules governing the operation of mobile money services, and specifies basic functionalities expected of any mobile payment service and. 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. Background these guidelines address mobile money issues. Mobile banking is a financial service often available in developed countries, but not in most. Liberias network suffers from the availability of agents dispersed around the country, particularly in rural liberia. 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.
A guide to the payments and fintech landscape in nigeria. 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. The purpose of this study was to determine the relationship between financial inclusion and mobile money in ghana. The objective of this study was to determine what happens to socialdriven structures like cooperatives when they interface with mobile money technologies. Cbn issues guidelines on international mobile money. 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 money services, performance, smes, eco cash, zimbabwe. Regulatory impact on mobile money and financial inclusion in. 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. Lubua and semlambo 2017 concur and indicate that users adopt mobile money because they perceive. Instead of paying with cash, cheque or credit cards, a consumer can use a mobile phone to pay for a. Adelelouise carter abstract the internet and other electronic media have had a positive impact on the lives of individuals and businesses all over the. Mobile money operators typically leverage an agent network to. Pdf users experience of mobile money in nigeria solomon. Which companies are licensed to offer mobile money. Please send all correspondence for the nigeria office to.
Atm, atmtobank and mobiletoatm funds transfer in nigeria among others as well as increase. 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 banking could be defined as a facility which provides banking ser. Mtn nigeria, the countrys largest telecoms operator, has been granted a super agent license which allows it. The study was geared towards investigating the use of mobile phones for mobile banking and mobile money services.
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