IDEAS home Printed from https://ideas.repec.org/a/eee/deveco/v176y2025ics0304387825000628.html

Incentives and endorsement for technology adoption: Evidence from mobile banking in Ghana

Author

Listed:
  • Riley, Emma
  • Shonchoy, Abu S.
  • Osei, Robert Darko

Abstract

How can we encourage the adoption of digital financial services? We use an RCT with 115 microfinance groups in Ghana to understand the respective roles of individual incentives to adopt a technology and endorsement of the technology by a peer. We study mobile banking services, a technology which allows deposits and withdrawals between a mobile phone and bank account, dramatically lowering the transaction costs of saving in the bank account. We find that while individual incentives increase adoption of mobile banking services by 60% (6 percentage points) over 6 months, adding endorsement by a peer doubles the impact of the incentives alone. Peer endorsement significantly enhances confidence in dealing with fraud and increases peer support in using mobile banking. Those encouraged to adopt mobile banking by a peer save 30% ($4) more in the linked bank account 6 months later. Our study highlights the power of peers in encouraging technology adoption and facilitating formal financial inclusion.

Suggested Citation

  • Riley, Emma & Shonchoy, Abu S. & Osei, Robert Darko, 2025. "Incentives and endorsement for technology adoption: Evidence from mobile banking in Ghana," Journal of Development Economics, Elsevier, vol. 176(C).
    • Handle: RePEc:eee:deveco:v:176:y:2025:i:c:s0304387825000628
    DOI: 10.1016/j.jdeveco.2025.103511
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0304387825000628
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jdeveco.2025.103511?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Pascaline Dupas & Dean Karlan & Jonathan Robinson & Diego Ubfal, 2018. "Banking the Unbanked? Evidence from Three Countries," American Economic Journal: Applied Economics, American Economic Association, vol. 10(2), pages 257-297, April.
    2. Kubilay, Elif & Raiber, Eva & Spantig, Lisa & Cahlíková, Jana & Kaaria, Lucy, 2023. "Can you spot a scam? Measuring and improving scam identification ability," Journal of Development Economics, Elsevier, vol. 165(C).
    3. Yoav Benjamini & Abba M. Krieger & Daniel Yekutieli, 2006. "Adaptive linear step-up procedures that control the false discovery rate," Biometrika, Biometrika Trust, vol. 93(3), pages 491-507, September.
    4. Anderson, Michael L., 2008. "Multiple Inference and Gender Differences in the Effects of Early Intervention: A Reevaluation of the Abecedarian, Perry Preschool, and Early Training Projects," Journal of the American Statistical Association, American Statistical Association, vol. 103(484), pages 1481-1495.
    5. Michael Callen & Suresh de Mel & Craig McIntosh & Christopher Woodruff, 2019. "What Are the Headwaters of Formal Savings? Experimental Evidence from Sri Lanka," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 86(6), pages 2491-2529.
    6. Esther Duflo & Michael Kremer & Jonathan Robinson, 2008. "How High Are Rates of Return to Fertilizer? Evidence from Field Experiments in Kenya," American Economic Review, American Economic Association, vol. 98(2), pages 482-488, May.
    7. Lori Beaman & Ariel BenYishay & Jeremy Magruder & Ahmed Mushfiq Mobarak, 2021. "Can Network Theory-Based Targeting Increase Technology Adoption?," American Economic Review, American Economic Association, vol. 111(6), pages 1918-1943, June.
    8. James Habyarimana & William Jack, 2024. "High Hopes: Experimental Evidence on Financial Inclusion and the Transition to High School in Kenya," Economic Development and Cultural Change, University of Chicago Press, vol. 72(3), pages 1189-1212.
    9. Asli Demirguc-Kunt & Dorothe Singer & Leora Klapper & Saniya Ansar & Dorothe Singer, 2022. "The Global Findex Database 2021," World Bank Publications - Books, The World Bank Group, number 37578, April.
    10. Abhijit Banerjee & Arun G Chandrasekhar & Esther Duflo & Matthew O Jackson, 2019. "Using Gossips to Spread Information: Theory and Evidence from Two Randomized Controlled Trials," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 86(6), pages 2453-2490.
    11. Nicolas Crouzet & Apoorv Gupta & Filippo Mezzanotti, 2023. "Shocks and Technology Adoption: Evidence from Electronic Payment Systems," Journal of Political Economy, University of Chicago Press, vol. 131(11), pages 3003-3065.
    12. Besley, T. & Case, A., 1994. "Diffusion as a Learning Process: Evidence from HYV Cotton," Papers 174, Princeton, Woodrow Wilson School - Development Studies.
    13. Emily Oster & Rebecca Thornton, 2012. "Determinants Of Technology Adoption: Peer Effects In Menstrual Cup Take-Up," Journal of the European Economic Association, European Economic Association, vol. 10(6), pages 1263-1293, December.
    14. Shawn Cole & Thomas Sampson & Bilal Zia, 2011. "Prices or Knowledge? What Drives Demand for Financial Services in Emerging Markets?," Journal of Finance, American Finance Association, vol. 66(6), pages 1933-1967, December.
    15. Jean N. Lee & Jonathan Morduch & Saravana Ravindran & Abu Shonchoy & Hassan Zaman, 2021. "Poverty and Migration in the Digital Age: Experimental Evidence on Mobile Banking in Bangladesh," American Economic Journal: Applied Economics, American Economic Association, vol. 13(1), pages 38-71, January.
    16. 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.
    17. Emma Riley, 2024. "Resisting Social Pressure in the Household Using Mobile Money: Experimental Evidence on Microenterprise Investment in Uganda," American Economic Review, American Economic Association, vol. 114(5), pages 1415-1447, May.
    18. repec:pri:rpdevs:besley_case_diffusion is not listed on IDEAS
    19. Patricio S. Dalton & Haki Pamuk & Ravindra Ramrattan & Burak Uras & Daan van Soest, 2024. "Electronic Payment Technology and Business Finance: A Randomized, Controlled Trial with Mobile Money," Management Science, INFORMS, vol. 70(4), pages 2590-2625, April.
    20. Pascaline Dupas & Jonathan Robinson, 2013. "Savings Constraints and Microenterprise Development: Evidence from a Field Experiment in Kenya," American Economic Journal: Applied Economics, American Economic Association, vol. 5(1), pages 163-192, January.
    21. Nicholas Economides & Przemyslaw Jeziorski, 2017. "Mobile Money in Tanzania," Marketing Science, INFORMS, vol. 36(6), pages 815-837, November.
    22. repec:pri:rpdevs:besley_case_diffusion.pdf is not listed on IDEAS
    23. Gharad Bryan & Shyamal Chowdhury & Ahmed Mushfiq Mobarak, 2014. "Underinvestment in a Profitable Technology: The Case of Seasonal Migration in Bangladesh," Econometrica, Econometric Society, vol. 82(5), pages 1671-1748, September.
    24. Foster, Andrew D & Rosenzweig, Mark R, 1995. "Learning by Doing and Learning from Others: Human Capital and Technical Change in Agriculture," Journal of Political Economy, University of Chicago Press, vol. 103(6), pages 1176-1209, December.
    25. Emily Breza & Martin Kanz & Leora F. Klapper, 2020. "Learning to Navigate a New Financial Technology: Evidence from Payroll Accounts," NBER Working Papers 28249, National Bureau of Economic Research, Inc.
    26. Fernando E. Alvarez & David Argente & Francesco Lippi & Esteban Méndez & Diana Van Patten, 2023. "Strategic Complementarities in a Dynamic Model of Technology Adoption: P2P Digital Payments," NBER Working Papers 31280, National Bureau of Economic Research, Inc.
    27. Seth Garz & Xavier Gine & Dean Karlan & Rafe Mazer & Caitlin Sanford & Jonathan Zinman, 2021. "Consumer Protection for Financial Inclusion in Low- and Middle-Income Countries: Bridging Regulator and Academic Perspectives," Annual Review of Financial Economics, Annual Reviews, vol. 13(1), pages 219-246, November.
    28. Munshi, Kaivan, 2004. "Social learning in a heterogeneous population: technology diffusion in the Indian Green Revolution," Journal of Development Economics, Elsevier, vol. 73(1), pages 185-213, February.
    29. Pierre Bachas & Paul Gertler & Sean Higgins & Enrique Seira, 2021. "How Debit Cards Enable the Poor to Save More," Journal of Finance, American Finance Association, vol. 76(4), pages 1913-1957, August.
    30. Timothy G. Conley & Christopher R. Udry, 2010. "Learning about a New Technology: Pineapple in Ghana," American Economic Review, American Economic Association, vol. 100(1), pages 35-69, March.
    31. Ariel BenYishay & A Mushfiq Mobarak, 2019. "Social Learning and Incentives for Experimentation and Communication," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 86(3), pages 976-1009.
    32. Suresh de Mel & Craig McIntosh & Ketki Sheth & Christopher Woodruff, 2022. "Can Mobile-Linked Bank Accounts Bolster Savings? Evidence from a Randomized Controlled Trial in Sri Lanka," The Review of Economics and Statistics, MIT Press, vol. 104(2), pages 306-320, May.
    33. Meriggi, Niccolò F. & Bulte, Erwin & Mobarak, Ahmed Mushfiq, 2021. "Subsidies for technology adoption: Experimental evidence from rural Cameroon," Journal of Development Economics, Elsevier, vol. 153(C).
    34. 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).
    35. Alvarez, Fernando & Argente, David & Jimenez, Rafael & Lippi, Francesco, 2022. "Cash: A Blessing or a curse?," Journal of Monetary Economics, Elsevier, vol. 125(C), pages 85-128.
    36. Daniel Björkegren, 2019. "The Adoption of Network Goods: Evidence from the Spread of Mobile Phones in Rwanda," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 86(3), pages 1033-1060.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kazushi Takahashi & Yukichi Mano & Keijiro Otsuka, 2018. "Spillovers as a Driver to Reduce Ex-post Inequality Generated by Randomized Experiments: Evidence from an Agricultural Training Intervention," Working Papers 174, JICA Research Institute.
    2. Bin Khaled, Muhammad Nahian & Maredia, Mywish K., 2024. "Long-term influence of social network and peers' characteristics on agricultural technology adoption: Evidence from Tanzania," 2024 Annual Meeting, July 28-30, New Orleans, LA 343777, Agricultural and Applied Economics Association.
    3. Annemie Maertens & Hope Michelson & Vesall Nourani, 2021. "How Do Farmers Learn from Extension Services? Evidence from Malawi," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(2), pages 569-595, March.
    4. Heitzig, Chris & O’Keeffe-O’Donovan, Rossa, 2024. "Spillover Effects and Diffusion of Savings Groups," World Development, Elsevier, vol. 173(C).
    5. Giné, Xavier & Goldberg, Jessica, 2023. "Experience in financial decision-making: Field evidence from Malawi," Journal of Development Economics, Elsevier, vol. 161(C).
    6. Olivia Bertelli & Fatou Fall, 2024. "Reaching out to socially distant trainees: experimental evidence from variations on the standard farmer trainer system," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 51(2), pages 533-588.
    7. repec:ags:aaea22:343777 is not listed on IDEAS
    8. Tisorn Songsermsawas & Kathy Baylis & Ashwini Chhatre & Hope Michelson, 2014. "Can Peers Improve Agricultural Productivity?," CESifo Working Paper Series 4958, CESifo.
    9. Brañas-Garza, Pablo & Kovářík, Jaromír & Rascón Ramírez, Ericka G., 2025. "Diffusion of mobile banking among rural women: Incentivizing local leaders vs. a marketing campaign," Journal of Behavioral and Experimental Finance, Elsevier, vol. 47(C).
    10. B Kelsey Jack, "undated". "Market Inefficiencies and the Adoption of Agricultural Technologies in Developing Countries," CID Working Papers 50, Center for International Development at Harvard University.
    11. Hossain, Marup & Songsermsawas, Tisorn, 2025. "Adapting to Thrive: Training and Access to Finance to Reduce Climate Vulnerability Among Smallholder Farmers in Nepal," 2025 AAEA & WAEA Joint Annual Meeting, July 27-29, 2025, Denver, CO 361170, Agricultural and Applied Economics Association.
    12. Magnan, Nicholas & Spielman, David J. & Lybbert, Travis J. & Gulati, Kajal, 2015. "Leveling with friends: Social networks and Indian farmers' demand for a technology with heterogeneous benefits," Journal of Development Economics, Elsevier, vol. 116(C), pages 223-251.
    13. Fafchamps, Marcel & Islam, Asad & Malek, Mohammad Abdul & Pakrashi, Debayan, 2020. "Can referral improve targeting? Evidence from an agricultural training experiment," Journal of Development Economics, Elsevier, vol. 144(C).
    14. Fernando, A. Nilesh, 2021. "Seeking the treated: The impact of mobile extension on farmer information exchange in India," Journal of Development Economics, Elsevier, vol. 153(C).
    15. Nicholas Magnan & David J Spielman & Travis J. Lybbert & Kajal Gulati, 2013. "Leveling with Friends: Social Networks and Indian Farmers’ Demand for Agricultural Custom Hire Services," Working Papers id:5591, eSocialSciences.
    16. Beg, Sabrin & Islam, Mahnaz & Rahman, Khandker Wahedur, 2024. "Information and behavior: Evidence from fertilizer quantity recommendations in Bangladesh," Journal of Development Economics, Elsevier, vol. 166(C).
    17. Marcel Fafchamps & Simon Quinn, 2018. "Networks and Manufacturing Firms in Africa: Results from a Randomized Field Experiment," The World Bank Economic Review, World Bank, vol. 32(3), pages 656-675.
    18. Morgan, Stephen N. & Mason, Nicole M. & Maredia, Mywish K., 2020. "Lead-farmer extension and smallholder valuation of new agricultural technologies in Tanzania," Food Policy, Elsevier, vol. 97(C).
    19. Bonan, Jacopo & Battiston, Pietro & Bleck, Jaimie & LeMay-Boucher, Philippe & Pareglio, Stefano & Sarr, Bassirou & Tavoni, Massimo, 2021. "Social interaction and technology adoption: Experimental evidence from improved cookstoves in Mali," World Development, Elsevier, vol. 144(C).
    20. Karlan, Dean & Horn, Samantha & Jamison, Julian C. & Zinman, Jonathan, 2020. "Does lasting behavior change require knowledge change? Evidence from savings interventions for young adults," CEPR Discussion Papers 15392, C.E.P.R. Discussion Papers.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:deveco:v:176:y:2025:i:c:s0304387825000628. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/devec .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.