Adopting Mobile Money: Evidence from an Experiment in Rural Africa

10 Pages Posted: 10 Feb 2020

See all articles by Catia Batista

Catia Batista

Nova School of Business and Economics; CReAM; IZA Institute of Labor Economics; NOVAFRICA

Pedro C. Vicente

New University of Lisbon - Nova School of Business and Economics

Abstract

Who uses mobile money? What is mobile money used for? This paper describes the mobile money adoption patterns following the experimental introduction of mobile money for the first time in rural areas of Southern Mozambique. We use a combination of administrative and household survey data to characterize early and late adopters, as well as their mobile money usage patterns during the three years after mobile money was introduced. We find that a large proportion of the individuals who were offered mobile money services actively adopted this technology. Adopters of mobile money (and early adopters in particular) are more educated than non-adopters, and they are also more likely to already hold a bank account. Positive self-selection of mobile money adopters raises questions about the effectiveness of mobile money as a tool for financial inclusion.

Keywords: fintech, mobile money, technology adoption, self-selection, financial inclusion, financial deepening, Mozambique, Africa

JEL Classification: O16, O33, G20

Suggested Citation

Batista, Catia and Vicente, Pedro C., Adopting Mobile Money: Evidence from an Experiment in Rural Africa. IZA Discussion Paper No. 12934. Available at SSRN: https://ssrn.com/abstract=3534482

Catia Batista (Contact Author)

Nova School of Business and Economics ( email )

Universidade Nova de Lisboa
Rua da Holanda, 1
Carcavelos, 2775-405
Portugal

CReAM

Drayton House
30 Gordon Street
London, WC1H 0AX
United Kingdom

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

HOME PAGE: http://www.iza.org/

NOVAFRICA ( email )

Nova School of Business and Economics
Rua da Holanda, 1
Carcavelos, 2775-405
Portugal

HOME PAGE: http://www.novafrica.org

Pedro C. Vicente

New University of Lisbon - Nova School of Business and Economics ( email )

Campus de Campolide
Lisbon, 1099-032
Portugal

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