The Role of Mobile Characteristics on Mobile Money Innovations

Quality & Quantity, 56(6), 4693–4710 (2022).

24 Pages Posted: 30 Jan 2022 Last revised: 23 Oct 2022

See all articles by Simplice Asongu

Simplice Asongu

African Governance and Development Institute

Nicholas Odhiambo

University of South Africa (UNISA) - Department of Economics

Date Written: January 25, 2022

Abstract

This study focuses on linkages between bank accounts and supply-side mobile money drivers for mobile money innovations. It seeks to understand how bank accounts can be complemented with mobile subscription and mobile connectivity dynamics (i.e., mobile connectivity coverage and mobile connectivity performance) for mobile money innovations. The empirical evidence is based on quadratic Tobit regressions. First, there are positive net relationships from the roles of mobile subscriptions and mobile connectivity coverage in modulating bank accounts for mobile money innovations. Second, mobile connectivity performance does not significantly modulate bank accounts for mobile money innovations. Third, given the negative marginal relationships associated with the positive net relationships, thresholds for complementary policies in mobile money supply factors that are worthwhile for bank accounts to stimulate mobile money innovations are provided. The thresholds are: (i) mobile subscription rates of 87.50%, 80.50%, and 98.50% of the adult population for respectively, the mobile money accounts, the mobile used to send money, and the mobile used to receive money, and (ii) mobile connectivity coverages of 64.00%, 69.33%, and 78.00% for respectively, the mobile money accounts, the mobile used to send money, and the mobile used to receive money.

Keywords: Mobile money; technology diffusion; financial inclusion; inclusive innovation

JEL Classification: D10; D14; D31; D60; O30

Suggested Citation

Asongu, Simplice and Odhiambo, Nicholas, The Role of Mobile Characteristics on Mobile Money Innovations (January 25, 2022). Quality & Quantity, 56(6), 4693–4710 (2022)., Available at SSRN: https://ssrn.com/abstract=4017293 or http://dx.doi.org/10.2139/ssrn.4017293

Simplice Asongu (Contact Author)

African Governance and Development Institute ( email )

P.O. Box 8413
Yaoundé, 8413
Cameroon

Nicholas Odhiambo

University of South Africa (UNISA) - Department of Economics ( email )

PO Box 392
Pretoria, 0003
South Africa

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