IDEAS home Printed from https://ideas.repec.org/p/exs/wpaper/22-011.html
   My bibliography  Save this paper

The role of mobile characteristics on mobile money innovations

Author

Listed:
  • Simplice A. Asongu

    (Yaounde, Cameroon)

  • Nicholas M. Odhiambo

    (Pretoria, South Africa)

Abstract

This study focuses on linkages between bank accounts and supply-side mobile money drivers for mobile money innovations. It seeks to understand how bank accounts can be complemented with mobile subscription and mobile connectivity dynamics (i.e., mobile connectivity coverage and mobile connectivity performance) for mobile money innovations. The empirical evidence is based on quadratic Tobit regressions. First, there are positive net relationships from the roles of mobile subscriptions and mobile connectivity coverage in modulating bank accounts for mobile money innovations. Second, mobile connectivity performance does not significantly modulate bank accounts for mobile money innovations. Third, given the negative marginal relationships associated with the positive net relationships, thresholds for complementary policies in mobile money supply factors that are worthwhile for bank accounts to stimulate mobile money innovations are provided. The thresholds are: (i) mobile subscription rates of 87.50%, 80.50%, and 98.50% of the adult population for respectively, the mobile money accounts, the mobile used to send money, and the mobile used to receive money, and (ii) mobile connectivity coverages of 64.00%, 69.33%, and 78.00% for respectively, the mobile money accounts, the mobile used to send money, and the mobile used to receive money.

Suggested Citation

  • Simplice A. Asongu & Nicholas M. Odhiambo, 2022. "The role of mobile characteristics on mobile money innovations," Working Papers 22/011, European Xtramile Centre of African Studies (EXCAS).
    • Handle: RePEc:exs:wpaper:22/011
    as

    Download full text from publisher

    File URL: http://publications.excas.org/RePEc/exs/exs-wpaper/The-role-of-mobile-characteristics-on-mobile-money-innovations.pdf
    File Function: Revised version, 2022
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Simplice A. Asongu & Nicholas M. Odhiambo, 2022. "Mobile technology supply factors and mobile money innovation: thresholds for complementary policies," Journal of Banking Regulation, Palgrave Macmillan, vol. 23(3), pages 288-301, September.
    2. Asongu, Simplice A. & Biekpe, Nicholas & Cassimon, Danny, 2021. "On the diffusion of mobile phone innovations for financial inclusion," Technology in Society, Elsevier, vol. 65(C).
    3. Vanessa S. Tchamyou & Simplice A. Asongu, 2017. "Information Sharing and Financial Sector Development in Africa," Journal of African Business, Taylor & Francis Journals, vol. 18(1), pages 24-49, January.
    4. Asongu, Simplice A. & Nwachukwu, Jacinta C., 2016. "The role of governance in mobile phones for inclusive human development in Sub-Saharan Africa," Technovation, Elsevier, vol. 55, pages 1-13.
    5. Vanessa Simen Tchamyou, 2020. "Education, lifelong learning, inequality and financial access: evidence from African countries," Contemporary Social Science, Taylor & Francis Journals, vol. 15(1), pages 7-25, January.
    6. Asongu, Simplice & Nnanna, Joseph & Acha-Anyi, Paul, 2020. "Inclusive Education for Inclusive Economic Participation: the Financial Access Channel," MPRA Paper 103151, University Library of Munich, Germany.
    7. Vanessa S. Tchamyou & Simplice A. Asongu & Nicholas M. Odhiambo, 2019. "The Role of ICT in Modulating the Effect of Education and Lifelong Learning on Income Inequality and Economic Growth in Africa," African Development Review, African Development Bank, vol. 31(3), pages 261-274, September.
    8. Boateng, Agyenim & Asongu, Simplice & Akamavi, Raphael & Tchamyou, Vanessa, 2018. "Information asymmetry and market power in the African banking industry," Journal of Multinational Financial Management, Elsevier, vol. 44(C), pages 69-83.
    9. Simplice A. Asongu, 2013. "How has Mobile Phone Penetration Stimulated Financial Development in Africa?," Journal of African Business, Taylor & Francis Journals, vol. 14(1), pages 7-18, April.
    10. Tchamyou, Vanessa S. & Erreygers, Guido & Cassimon, Danny, 2019. "Inequality, ICT and financial access in Africa," Technological Forecasting and Social Change, Elsevier, vol. 139(C), pages 169-184.
    11. Simplice A. Asongu & Nicholas M. Odhiambo, 2020. "How enhancing gender inclusion affects inequality: Thresholds of complementary policies for sustainable development," Sustainable Development, John Wiley & Sons, Ltd., vol. 28(1), pages 132-142, January.
    12. Simplice A. Asongu, 2018. "CO2 emission thresholds for inclusive human development in Sub-Saharan Africa," Research Africa Network Working Papers 18/023, Research Africa Network (RAN).
    13. Simplice A. Asongu & Nicholas M. Odhiambo, 2018. "Human development thresholds for inclusive mobile banking in developing countries," African Journal of Science, Technology, Innovation and Development, Taylor & Francis Journals, vol. 10(6), pages 735-744, September.
    14. Simplice A. Asongu & Nicholas M. Odhiambo, 2020. "Insurance Policy Thresholds for Economic Growth in Africa," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 32(3), pages 672-689, July.
    15. Asongu, Simplice A. & Biekpe, Nicholas & Cassimon, Danny, 2020. "Understanding the greater diffusion of mobile money innovations in Africa," Telecommunications Policy, Elsevier, vol. 44(8).
    16. Asongu, Simplice A. & Odhiambo, Nicholas M., 2020. "Foreign direct investment, information technology and economic growth dynamics in Sub-Saharan Africa," Telecommunications Policy, Elsevier, vol. 44(1).
    17. Asongu, Simplice A. & Odhiambo, Nicholas M., 2021. "Inequality, finance and renewable energy consumption in Sub-Saharan Africa," Renewable Energy, Elsevier, vol. 165(P1), pages 678-688.
    18. Conrad Murendo & Meike Wollni & Alan De Brauw & Nicholas Mugabi, 2018. "Social Network Effects on Mobile Money Adoption in Uganda," Journal of Development Studies, Taylor & Francis Journals, vol. 54(2), pages 327-342, February.
    19. van der Boor, Paul & Oliveira, Pedro & Veloso, Francisco, 2014. "Users as innovators in developing countries: The global sources of innovation and diffusion in mobile banking services," Research Policy, Elsevier, vol. 43(9), pages 1594-1607.
    20. Simplice A. Asongu & Nicholas M. Odhiambo, 2020. "Trade and FDI Thresholds of CO2 emissions for a Green Economy in Sub-Saharan Africa," Working Papers 20/072, European Xtramile Centre of African Studies (EXCAS).
    21. Kusi, Baah Aye & Agbloyor, Elikplimi Komla & Ansah-Adu, Kwadjo & Gyeke-Dako, Agyapomaa, 2017. "Bank credit risk and credit information sharing in Africa: Does credit information sharing institutions and context matter?," Research in International Business and Finance, Elsevier, vol. 42(C), pages 1123-1136.
    22. Asongu, Simplice A. & Agyemang-Mintah, Peter & Nting, Rexon T., 2021. "Law, mobile money drivers and mobile money innovations in developing countries," Technological Forecasting and Social Change, Elsevier, vol. 168(C).
    23. Asli Demirguc-Kunt & Leora Klapper, 2013. "Measuring Financial Inclusion: Explaining Variation in Use of Financial Services across and within Countries," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 44(1 (Spring), pages 279-340.
    24. Asongu, Simplice A. & Nnanna, Joseph & Acha-Anyi, Paul N., 2020. "Inequality and gender economic inclusion: The moderating role of financial access in Sub-Saharan Africa," Economic Analysis and Policy, Elsevier, vol. 65(C), pages 173-185.
    25. Harald Gruber & Pantelis Koutroumpis, 2013. "Competition enhancing regulation and diffusion of innovation: the case of broadband networks," Journal of Regulatory Economics, Springer, vol. 43(2), pages 168-195, April.
    26. Morsy, Hanan, 2020. "Access to finance – Mind the gender gap," The Quarterly Review of Economics and Finance, Elsevier, vol. 78(C), pages 12-21.
    27. Asongu, Simplice A. & Biekpe, Nicholas, 2018. "ICT, information asymmetry and market power in African banking industry," Research in International Business and Finance, Elsevier, vol. 44(C), pages 518-531.
    28. Malaquias, Rodrigo Fernandes & Silva, Altieres Frances, 2020. "Understanding the use of mobile banking in rural areas of Brazil," Technology in Society, Elsevier, vol. 62(C).
    29. Simplice Asongu & Ndemaze Asongu, 2018. "The comparative exploration of mobile money services in inclusive development," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 45(1), pages 124-139, January.
    30. Amemiya, Takeshi, 1984. "Tobit models: A survey," Journal of Econometrics, Elsevier, vol. 24(1-2), pages 3-61.
    31. Kumar, Dr.B.Pradeep, 2011. "Financial Exclusion: A Theoretical Approach," MPRA Paper 89864, University Library of Munich, Germany, revised 17 Jun 2011.
    32. Asli Demirguc-Kunt & Leora Klapper, 2013. "Measuring Financial Inclusion: Explaining Variation in Use of Financial Services across and within Countries," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 46(1 (Spring), pages 279-340.
    33. Richard T. Carson & Yixiao Sun, 2007. "The Tobit model with a non-zero threshold," Econometrics Journal, Royal Economic Society, vol. 10(3), pages 488-502, November.
    34. Hoque, Md. Rakibul, 2020. "The impact of the ICT4D project on sustainable rural development using a capability approach: Evidence from Bangladesh," Technology in Society, Elsevier, vol. 61(C).
    35. Arif, Imtiaz & Aslam, Wajeeha & Hwang, Yujong, 2020. "Barriers in adoption of internet banking: A structural equation modeling - Neural network approach," Technology in Society, Elsevier, vol. 61(C).
    36. Karakara, Alhassan A. & Osabuohien, Evans S., 2019. "Households' ICT access and bank patronage in West Africa: Empirical insights from Burkina Faso and Ghana," Technology in Society, Elsevier, vol. 56(C), pages 116-125.
    37. Vanessa S. Tchamyou, 2019. "The Role of Information Sharing in Modulating the Effect of Financial Access on Inequality," Journal of African Business, Taylor & Francis Journals, vol. 20(3), pages 317-338, July.
    38. Turk Ariss, Rima, 2010. "On the implications of market power in banking: Evidence from developing countries," Journal of Banking & Finance, Elsevier, vol. 34(4), pages 765-775, April.
    39. Wichers, C Robert, 1975. "The Detection of Multicollinearity: A Comment," The Review of Economics and Statistics, MIT Press, vol. 57(3), pages 366-368, August.
    40. Lashitew, Addisu A. & van Tulder, Rob & Liasse, Yann, 2019. "Mobile phones for financial inclusion: What explains the diffusion of mobile money innovations?," Research Policy, Elsevier, vol. 48(5), pages 1201-1215.
    41. Waverman, Leonard & Koutroumpis, Pantelis, 2011. "Benchmarking telecoms regulation - The Telecommunications Regulatory Governance Index (TRGI)," Telecommunications Policy, Elsevier, vol. 35(5), pages 450-468, June.
    42. Ignacio Mas & Olga Morawczynski, 2009. "Designing Mobile Money Services Lessons from M-PESA," Innovations: Technology, Governance, Globalization, MIT Press, vol. 4(2), pages 77-91, April.
    43. Baah Aye Kusi & Mary Opoku†Mensah, 2018. "Does credit information sharing affect funding cost of banks? Evidence from African banks," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 23(1), pages 19-28, January.
    44. Aparna Gosavi, 2018. "Can Mobile Money Help Firms Mitigate the Problem of Access to Finance in Eastern sub-Saharan Africa?," Journal of African Business, Taylor & Francis Journals, vol. 19(3), pages 343-360, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Simplice Asongu, 2023. "Telecommunications regulation, mobile money innovations and financial inclusion," Journal of Financial Regulation and Compliance, Emerald Group Publishing Limited, vol. 31(4), pages 503-521, April.
    2. Favourate Y. Mpofu & David Mhlanga, 2022. "Digital Financial Inclusion, Digital Financial Services Tax and Financial Inclusion in the Fourth Industrial Revolution Era in Africa," Economies, MDPI, vol. 10(8), pages 1-22, July.

    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. Simplice A. Asongu & Nicholas M. Odhiambo, 2022. "Mobile technology supply factors and mobile money innovation: thresholds for complementary policies," Journal of Banking Regulation, Palgrave Macmillan, vol. 23(3), pages 288-301, September.
    2. Simplice A. Asongu & Nicholas M. Odhiambo, 2022. "The of role economic growth in modulating mobile connectivity dynamics for financial inclusion in developing countries," Working Papers of the African Governance and Development Institute. 22/013, African Governance and Development Institute..
    3. Simplice A. Asongu & Raufhon Salahodjaev, 2023. "Demand-Side Mobile Money Drivers of Financial Inclusion: Minimum Economic Growth Thresholds for Mobile Money Innovations," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(4), pages 4848-4865, December.
    4. Asongu, Simplice A. & Agyemang-Mintah, Peter & Nting, Rexon T., 2021. "Law, mobile money drivers and mobile money innovations in developing countries," Technological Forecasting and Social Change, Elsevier, vol. 168(C).
    5. Simplice A. Asongu & Nicholas M. Odhiambo, 2022. "Mobile technology supply factors and mobile money innovation: thresholds for complementary policies," Journal of Banking Regulation, Palgrave Macmillan, vol. 23(3), pages 288-301, September.
    6. Simplice A. Asongu & Nicholas M. Odhiambo, 2023. "Bank accounts, bank concentration and mobile money innovations," Working Papers 23/019, European Xtramile Centre of African Studies (EXCAS).
    7. Asongu, Simplice A. & Biekpe, Nicholas & Cassimon, Danny, 2020. "Understanding the greater diffusion of mobile money innovations in Africa," Telecommunications Policy, Elsevier, vol. 44(8).
    8. Asongu, Simplice A. & Biekpe, Nicholas & Cassimon, Danny, 2021. "On the diffusion of mobile phone innovations for financial inclusion," Technology in Society, Elsevier, vol. 65(C).
    9. Simplice Asongu, 2023. "Telecommunications regulation, mobile money innovations and financial inclusion," Journal of Financial Regulation and Compliance, Emerald Group Publishing Limited, vol. 31(4), pages 503-521, April.
    10. Simplice A. Asongu, 2021. "The Effects of Mobile Phone Technology, Knowledge Creation and Diffusion on Inclusive Human Development in Sub-Saharan Africa," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(3), pages 1367-1398, September.
    11. Asongu, Simplice A. & Nnanna, Joseph & Acha-Anyi, Paul N., 2020. "Finance, inequality and inclusive education in Sub-Saharan Africa," Economic Analysis and Policy, Elsevier, vol. 67(C), pages 162-177.
    12. Asongu, Simplice A. & Odhiambo, Nicholas M., 2021. "Inequality, finance and renewable energy consumption in Sub-Saharan Africa," Renewable Energy, Elsevier, vol. 165(P1), pages 678-688.
    13. Asongu, Simplice A. & Nnanna, Joseph & Acha-Anyi, Paul N., 2020. "Inequality and gender economic inclusion: The moderating role of financial access in Sub-Saharan Africa," Economic Analysis and Policy, Elsevier, vol. 65(C), pages 173-185.
    14. Simplice A. Asongu & Nicholas M. Odhiambo, 2020. "Social Media and Inclusive Human Development in Africa," Working Papers 20/017, European Xtramile Centre of African Studies (EXCAS).
    15. Asongu, Simplice A. & Odhiambo, Nicholas M., 2020. "Inequality and gender inclusion: Minimum ICT policy thresholds for promoting female employment in Sub-Saharan Africa," Telecommunications Policy, Elsevier, vol. 44(4).
    16. Asongu, Simplice & Nnanna, Joseph & Acha-Anyi, Paul, 2020. "Inclusive Education for Inclusive Economic Participation: the Financial Access Channel," MPRA Paper 103151, University Library of Munich, Germany.
    17. Simplice A. Asongu & Mushfiqur Rahman & Mohammad Alghababsheh, 2022. "Information Technology, Business Sustainability and Female Economic Participation in Sub-Saharan Africa," Working Papers 22/057, European Xtramile Centre of African Studies (EXCAS).
    18. Simplice A. Asongu & Nicholas M. Odhiambo, 2022. "Financial Access and Value Added in Sub-Saharan Africa: Empirical Evidence from the Agricultural, Manufacturing and Service Sectors," Working Papers 22/009, European Xtramile Centre of African Studies (EXCAS).
    19. Simplice A. Asongu & Nicholas M. Odhiambo, 2019. "Enhancing ICT for insurance in Africa," Review of Development Finance Journal, Chartered Institute of Development Finance, vol. 9(2), pages 16-27.
    20. Asongu, Simplice & Odhiambo, Nicholas, 2020. "The role of Globalization in Modulating the Effect of Environmental Degradation on Inclusive Human Development," MPRA Paper 103143, University Library of Munich, Germany.

    More about this item

    Keywords

    Mobile money; technology diffusion; financial inclusion; inclusive innovation;
    All these keywords.

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D60 - Microeconomics - - Welfare Economics - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:exs:wpaper:22/011. 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: Anutechia Asongu Simplice (email available below). General contact details of provider: http://excas.org/ .

    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.