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Adopting Mobile Money: Evidence from an Experiment in Rural Africa

Author

Listed:
  • Catia Batista
  • Pedro C. Vicente

Abstract

Who uses mobile money, and what do people do with it? This paper describes mobile money adoption patterns following the experimental introduction of mobile money for the first time in rural areas of Southern Mozambique. We use administrative and household survey data to characterize adopters as well as their mobile money usage patterns over three years. Adopters of mobile money (and early adopters in particular) are more educated than nonadopters, and they are also more likely to already hold a bank account. Positive self-selection of adopters should be considered when introducing mobile money as a tool for rapid financial inclusion.

Suggested Citation

  • Catia Batista & Pedro C. Vicente, 2020. "Adopting Mobile Money: Evidence from an Experiment in Rural Africa," AEA Papers and Proceedings, American Economic Association, vol. 110, pages 594-598, May.
    • Handle: RePEc:aea:apandp:v:110:y:2020:p:594-98
    DOI: 10.1257/pandp.20201086
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    Cited by:

    1. Joël Cariolle & David A Carroll, 2020. "Digital Technologies for Small and Medium Enterprises and job creation in Sub-Saharan Africa," Working Papers hal-03004583, HAL.
    2. Johnen, Constantin & Parlasca, Martin & Mußhoff, Oliver, 2023. "Mobile money adoption in Kenya: The role of mobile money agents," Technological Forecasting and Social Change, Elsevier, vol. 191(C).
    3. Lee, Jean N. & Morduch, Jonathan & Ravindran, Saravana & Shonchoy, Abu S., 2022. "Narrowing the gender gap in mobile banking," Journal of Economic Behavior & Organization, Elsevier, vol. 193(C), pages 276-293.
    4. Anna Crisci & Luana Serino & Francesco Campanella, 2024. "Graphical diagnostics in proportional odds models—Empirical study on determinants of FinTech payment service diffusion by SMEs in Italy," Quality & Quantity: International Journal of Methodology, Springer, vol. 58(6), pages 5755-5776, December.
    5. Apeti, Ablam Estel, 2023. "Household welfare in the digital age: Assessing the effect of mobile money on household consumption volatility in developing countries," World Development, Elsevier, vol. 161(C).
    6. Naito, Hisahiro & Yamamoto, Shinnosuke, 2022. "Is better access to mobile networks associated with increased mobile money adoption? Evidence from the micro-data of six developing countries," Telecommunications Policy, Elsevier, vol. 46(6).
    7. Ablam Estel Apeti, 2022. "Household welfare in the digital age: Assessing the effect of mobile money on household consumption volatility in developing countries," Post-Print hal-03819779, HAL.
    8. Abate, Gashaw T. & Abay, Kibrom A. & Chamberlin, Jordan & Kassim, Yumna & Spielman, David J. & Paul Jr Tabe-Ojong, Martin, 2023. "Digital tools and agricultural market transformation in Africa: Why are they not at scale yet, and what will it take to get there?," Food Policy, Elsevier, vol. 116(C).
    9. Cátia Batista & Marcel Fafchamps & Pedro C Vicente, 2022. "Keep It Simple: A Field Experiment on Information Sharing among Strangers [Changing Saving and Investment Behavior: The Impact of Financial Literacy Training and Reminders on Micro-Businesses]," The World Bank Economic Review, World Bank, vol. 36(4), pages 857-888.
    10. Richard Chamboko, 2024. "Digital financial services adoption: a retrospective time-to-event analysis approach," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 10(1), pages 1-27, December.
    11. Abubakar, Jamila & Aysan, Ahmet F. & Disli, Mustafa & Elnahass, Marwa, 2025. "Financial shocks and savings amongst Africa's middle class: Insights from FinTech data," International Review of Economics & Finance, Elsevier, vol. 103(C).
    12. Hisahiro Naito & Shinnosuke Yamamoto, 2022. "Is Better Access to Mobile Networks Associated with Increased Mobile Money Adoption? Evidence from the Micro-data of Six Developing Countries," Tsukuba Economics Working Papers 2022-001, Faculty of Humanities and Social Sciences, University of Tsukuba.
    13. Aurazo, Jose & Gasmi, Farid, 2024. "Digital payment systems in emerging economies: Lessons from Kenya, India, Brazil, and Peru," Information Economics and Policy, Elsevier, vol. 69(C).
    14. Emmanuel Kwablah Apiors & Aya Suzuki, 2023. "Effects of Mobile Money Education on Mobile Money Usage: Evidence from Ghana," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 35(3), pages 715-742, June.
    15. Aurazo, Jose & Gasmi, Farid, 2024. "Digital payment systems in emerging economies: Lessons from Kenya, India, Brazil, and Peru," TSE Working Papers 24-1572, Toulouse School of Economics (TSE).
    16. Batista, Catia & Vicente, Pedro C., 2020. "Improving access to savings through mobile money: Experimental evidence from African smallholder farmers," World Development, Elsevier, vol. 129(C).
    17. Marcel Fafchamps & Måns Söderbom & Monique van den Boogart, 2022. "Adoption with Social Learning and Network Externalities," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 84(6), pages 1259-1282, December.
    18. Catia Batista & Sandra Sequeira & Pedro C. Vicente, 2022. "Closing the Gender Profit Gap?," Management Science, INFORMS, vol. 68(12), pages 8553-8567, December.
    19. Holden, Stein T. & Tilahun, Mesfin, 2021. "Mobile phones, leadership and gender in rural business groups," World Development Perspectives, Elsevier, vol. 24(C).
    20. Cátia Batista & Pedro C. Vicente, 2025. "Is Mobile Money Changing Rural Africa? Evidence from a Field Experiment," The Review of Economics and Statistics, MIT Press, vol. 107(3), pages 835-844, May.

    More about this item

    JEL classification:

    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G51 - Financial Economics - - Household Finance - - - Household Savings, Borrowing, Debt, and Wealth
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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