Mobile Phone for Financial Inclusion: Mobile Money Adoption in the West African Economic and Monetary Union
22 Pages Posted: 14 Nov 2019
Date Written: May 24, 2019
Mobile money, defined as the use of mobile phones to conduct financial transactions, can bring many benefits to individuals, particularly in developing countries. Yet, very little is known about the factors behind its adoption. This study uses nationally representative individual-level survey data on the West African Economic and Monetary Union (WAEMU) countries from the Global Financial Inclusion Database and employs logistic models to highlight drivers of mobile money adoption. Our results show that having a bank account, being in the workforce, receiving domestic remittances, owning a mobile phone, and having a national ID favor mobile money adoption when measured as a global state. Moreover, being female, better educated, and wealthier increase the likelihood of adopting mobile money. Taking mobile-money adoption as a four-step process, we find similar results: having a bank account; receiving domestic remittances; and being in the workforce, younger, female, better educated, and wealthier facilitate mobile money adoption. Furthermore, we take into account the particularity of each WAEMU-member country and find some disparities in the determinants of both measure of mobile money adoption. These findings are of particular interest to the design of policies that foster financial inclusion and target disadvantaged groups.
Keywords: Mobile Money, Adoption, Financial Inclusion, West African Economic and Monetary Union
JEL Classification: G02, G23, O12
Suggested Citation: Suggested Citation