Mobile Commerce: Mobile Money Transfer in Ghana

Abstract

Mobile money transfer allows people to send money using Short Message Service (SMS). Its low costs, fast speed and no need of having a bank account. The service started in Kenya as MPESA introduced by Safaricom and has since been replicated in other parts of the world especially in developing countries. The service was introduced in Ghana in 2009. Much research has been done in mobile money transfer but mostly focused on the success of MPESA. Very little is known with respect to the service in Ghana. This paper studied the use of mobile money transfer service in Ghana. The study sought to compare the extension and impact of the service as against the successful implementation of Kenya‟s MPESA. The objective was to investigate the socioeconomic characteristics of MMT users, their MMT experience, as well as the agents‟ operations. Quantitative and qualitative research method based on the Positivism and the Interpretivism philosophies were used. The survey method using questionnaire was used. The respondents were users and agents of mobile money transfer in Ghana with sample taken from four communities, Ahenkro, Offinso, Buoho, and Kodie, located in the Ashanti region of Ghana. Secondary data was also used. The result of the survey showed that MMT was used to a large extent in Ghana, just as in Kenya; it was concluded that like the survey by Mas & Radcliffe, (2010) which found that 98 percent of users in Kenya were happy with the service, the users in Ghana were equally happy, however, the percentage in Ghana was 88%. Other findings included there were more male users of MMT than female users, the elderly sent mobile money to their younger counterparts, and Formal workers use more mobile money than their informal counterparts; the educational level of the formal senders was higher than the educational level of the corresponding recipient, Siblings are more recipients of mobile money in Ghana; mothers receive more mobile money than fathers; and spouses receive more mobile money than children. Like in Kenya, the popularity and use of mobile phones in Ghana was widespread and reflected the global statistics of mobile phone use; 90% of household owned and could use mobile phone, Unlike in Kenya where M-Ticketing is widely used, the service is not widespread in Ghana. Registration/subscription process was quite mild; however, more efforts needs to be put in place by MNOs in Ghana for effective MMT. Withdrawing money with MMT in Ghana was instant and therefore quite good, there was high usage of the service, cross-net was used in Ghana to a large extent and the main reason was that the recipients were affiliated to a different network, Some of the reasons for the non use of MMT in Ghana were Complex procedures, delay in withdrawing money, inadequate agents/point of registration, and distrust. Others were inadequate advertisement and illiteracy. On top of the list was inadequate agents/point of registration. There was a high the high proportion of agents who were Senior High School leavers, the agents‟ procedure to becoming MMT agent was found to be well structured, however, their training aspects needed to improvement.