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China’s mobile payment: lessons for African countries

Author

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  • Fodouop Kouam Arthur William

    (School of Management, Hebei University, Baoding city, Hebei Province, China.)

Abstract

In Kenya in 2007, Safaricom launched its M-PESA solution for peer-to-peer money transfer, known as the start of mobile money. Nowadays, Africa is the global leader in mobile money. However, many see China as the leader in terms of mobile payment. In many African countries, mobile money transactions such as peer-to-peer transfers and personal account withdrawals are costly. While in China, the cost of these transactions is meager; some are even free of charge. This study aims to assess the lessons African countries can learn from China’s mobile payment. The empirical research question is to determine what African countries can learn from China’s mobile payment, especially peer-to-peer money transfers and personal account withdrawals. We collected data from 19 African countries from mobile network operators operating in these countries. We analyzed data using descriptive statistics. Findings show that the costs of peer-to-peer transfer and withdrawal from a personal account are expensive in African countries compared to China. African governments should promote the adoption of QR code payment and provide technology infrastructure and good regulation.

Suggested Citation

  • Fodouop Kouam Arthur William, 2022. "China’s mobile payment: lessons for African countries," International Journal of Science and Business, IJSAB International, vol. 15(1), pages 87-93.
    • Handle: RePEc:aif:journl:v:15:y:2022:i:1:p:87-93
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    References listed on IDEAS

    as
    1. Leora Klapper, 2023. "How digital payments can benefit entrepreneurs," IZA World of Labor, Institute of Labor Economics (IZA), pages 396-396, April.
    2. Yiping Huang & Xue Wang & Xun Wang, 2020. "Mobile Payment in China: Practice and Its Effects," Asian Economic Papers, MIT Press, vol. 19(3), pages 1-18, Fall.
    3. Michael Chui, 2021. "Money, technology and banking: what lessons can China teach the rest of the world?," BIS Working Papers 947, Bank for International Settlements.
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