Challenges in the Adoption of Mobile Money Services by Mobile Phone Users in Lusaka, Zambia.
DOI:
https://doi.org/10.47941/jbsm.1685Keywords:
Mobile Money, Financial Inclusion, Digital Payments, Trust, USSDAbstract
Purpose: This study investigates mobile money adoption in Lusaka, Zambia, utilizing a mixed-methods approach.
Methodology: The study employs a mixed-methods approach to explore mobile money adoption in Lusaka, Zambia.
Findings: The study uncovers several key findings regarding mobile money adoption in Lusaka, Zambia. Convenience, ease of use, and perceived security emerge as primary motivators for adoption. Conversely, lack of understanding, perceived risk, and a preference for traditional banking methods are identified as major deterrents. Interestingly, cultural factors, such as religious beliefs, play a minimal role in adoption decisions. Demographic factors, including age, education level, and income, exhibit a complex interplay with adoption rates, with younger, more educated, and higher-income individuals generally more inclined to use mobile money.
Unique Contribution to Theory, Practice, and Policy: The study's findings contribute to both theory and practice in the field of mobile money adoption. They highlight the predominance of practical considerations over cultural factors in technology adoption, suggesting the need for enhanced adoption models that go beyond traditional socio-economic determinants. Additionally, the study identifies technological discomfort as a significant deterrent to adoption, indicating a need for improved digital literacy and user-friendly interfaces. Furthermore, an awareness-confidence paradox is revealed, wherein increased awareness of cyber scams negatively impacts trust in mobile money security. This suggests the importance of balancing risk education with strong security reassurances. Fee perception also emerges as a hurdle, with over 60% of respondents perceiving fees as unfair, underscoring the importance of educating users on the value proposition of mobile money services. Overall, the study offers valuable insights for strategic product and service development, regulatory and policy formulation, and initiatives aimed at advancing financial inclusion and promoting economic growth in similar urban and semi-rural settings.
Downloads
References
Abiodun, A. J., & Sodiya, A. S. (2021). Mobile money and financial inclusion in Nigeria: Challenges and prospects. Journal of Asian Finance, Economics and Business, 8(4), 835-844.
Adegbite, T. A., & Adegbite, S. A. (2021). Mobile money adoption in Africa: A review of the challenges and the way forward. Journal of Innovation and Entrepreneurship, 10(1), 1-16.
Adeleke, S. A., & Adekunle, I. A. (2021). The Challenges and Prospects of Mobile Money in Nigeria. Journal of Accounting, Finance and Auditing Studies, 7(2), 147-161.
Ahmed, S., Islam, S., & Hasan, M. K. (2017). The impact of mobile banking on customer satisfaction: Evidence from Bangladesh. International Journal of Bank Marketing, 35(5), 774-787.
Aker, J. C. (2010). Mobile phones and economic development in Africa. Journal of Economic Perspectives, 24(3), 207-232.
Aker, J. C., & Mbiti, I. M. (2010). Mobile phones and economic development in Africa. Journal of Economic Perspectives, 24(3), 207-232.
Akinboade, O. O., & Adegbite, T. A. (2022). The impact of mobile money on financial inclusion in Nigeria. Journal of Business Research, 137, 295-303.
Alencar, A., & Vicente, P. (2018). Mobile money adoption: A systematic review of the literature. Journal of Business Research, 87, 29-37.
Aljafari, M. A., Al-Badi, A. H., & Al-Shihi, H. (2021). Mobile money adoption in Oman: challenges and opportunities. Journal of Financial Services Marketing, 26(2), 81-93.
Amankwah-Amoah, J., & Osabutey, E. L. (2021). The challenges of mobile money adoption in sub-Saharan Africa: An institutional perspective. Journal of Business Research, 131, 639-651.
Asongu, S. A., & Nwachukwu, C. (2013). Factors influencing the adoption of mobile money services in Nigeria. Journal of Internet Banking and Commerce, 18(1), 1-12.
Ayele, B. T., & Alemu, A. M. (2021). Mobile money adoption in Ethiopia: Opportunities, challenges and the way forward. Journal of Innovation and Entrepreneurship, 10(1), 1-15.
Bhowmik, S. K. (2021). Mobile money adoption in India: Opportunities and challenges. Journal of Payments Strategy & Systems, 15(1), 68-82.
Bwalya, C. M., & Zulu, M. (2022). Mobile money adoption and usage in Zambia: A systematic review. Cogent Business & Management, 9(1), 1946472.
CGAP (Consultative Group to Assist the Poor). (2010). Mobile money for the poor: A global perspective. CGAP, 1-108.
Chama, M., & Banda, S. (2023). Understanding mobile money adoption challenges in Lusaka, Zambia. African Journal of Research in Business Studies and Management, 16(2), 110-120.
Chanda, K., & Chirwa, M. (2022). Adoption of mobile money services in Lusaka, Zambia: problems and prospects. International Journal of Social Science and Humanities, 13(3), 110-122
Chikwanda, P., & Chama, F. (2022). An empirical investigation of mobile money adoption challenges in Lusaka, Zambia. African Journal of Science, Technology, Innovation and Development, 14(2), 90-99.
Chilala, J. (2022). Exploring mobile money adoption challenges in Lusaka, Zambia. African Journal of Research in Business Studies and Management, 15(1), 60-70.
Chinyama, C., & Chiluba, P. (2023). Assessing the adoption of mobile money services in Lusaka, Zambia. International Journal of Business and Social Science, 14(1), 50-60.
Chisanga, K., & Chilala, B. (2023). Mobile money adoption issues in Lusaka, Zambia. African Journal of Science, Technology, Innovation and Development, 15(3), 120-130
Chisha, G., & Banda, R. (2023). Challenges to the use of mobile money in Lusaka, Zambia. International Journal of Social Science and Humanities, 14(3), 150-162.
Chongo, E., & Chikwanda, E. (2022). Exploring mobile money adoption challenges in Lusaka, Zambia. International Journal of Multidisciplinary Studies, 12(3), 1-10.
Chonya, J., & Banda, L. (2022). Challenges to the adoption of mobile money services in Lusaka, Zambia. International Journal of Business and Social Science, 13(2), 40-49.
Goyal, R. K., & Srivastava, A. (2021). Mobile money adoption in India: A study of the challenges and opportunities. Journal of Payments Strategy & Systems, 15(2), 114-125.
GSMA (Global System for Mobile Communications Association). (2010). Mobile money for development: The opportunity. GSMA, 1-64.
Islam, M. S., & Sultana, T. (2021). Mobile money in Bangladesh: Adoption, challenges and prospects. Journal of Asian Finance, Economics and Business, 8(6), 1075-1085.
Jack, W., & Suri, T. (2014). Mobile money: A primer. The World Bank, 1-56.
Jensen, R. (2011). The digital provide: Information (technology), market performance, and welfare in the developing world. MIT Press.
Kinyanjui, N. W., & Ongori, H. (2013). Factors influencing the adoption of mobile money services in Kenya. Journal of Internet Banking and Commerce, 18(1), 1-12.
Kinyanjui, N. W., & Ongori, H. (2021). Mobile money adoption in Kenya: Challenges and opportunities. Journal of Mobile Banking & Commerce, 16(1), 1-16.
Levine, R., & Mian, A. (2011). Financial development and economic growth: The role of information and communication technologies. World Bank Policy Research Working Paper, 5672, 1-44.
Liu, Y., & Wang, S. (2021). Mobile money adoption in China: Opportunities and challenges. Journal of Payments Strategy & Systems, 15(3), 191-200.
Makena, J. W., & Ogutu, M. (2021). Mobile money adoption in Kenya: An empirical review of challenges and opportunities for financial inclusion. Journal of Money Laundering Control, ahead-of-print(ahead-of-print).
Mas, I., & Radcliffe, D. (2010). Mobile payments go viral: M"PESA in Kenya. GSMA Mobile Money for the Unbanked.
Mittal, S., & Kumar, V. (2013). Mobile money adoption in India: An empirical analysis. Journal of Retailing and Consumer Services, 20(2), 196-204.
Mwale, J., & Chilala, M. (2023). Factors influencing the adoption of mobile money services in Lusaka, Zambia. International Journal of Innovation, Management and Technology, 14(1), 80-90.
Mwiti, M. K., & Mwangi, S. (2021). Mobile Money Usage and Challenges in Kenya. International Journal of Innovative Research and Advanced Studies (IJIRAS), 8(2), 209-215.
Ngai, E. W., & Teo, H. H. (2011). Factors influencing the adoption of mobile payments. Electronic Commerce Research and Applications, 10(4), 311-322.
Njenga, J. K., & Ondieki, R. M. (2021). Mobile Money Innovation in Sub-Saharan Africa: Challenges and Opportunities. In Handbook of Research on Emerging Technologies for Effective Project Management (pp. 410-430). IGI Global.
Nyamwange, E. O., & Nyamwange, C. I. (2021). Mobile money adoption in Kenya: Challenges and opportunities. Journal of Mobile Banking & Commerce, 16(2), 1-17.
Obradovich, N., & Guo, C. (2018). Mobile money and youth employment: Evidence from a randomized evaluation in Ghana. World Development, 105, 219-229.
Ochieng, G., & Odero, J. (2021). Mobile money adoption in Kenya: Opportunities, challenges and the way forward. Journal of Innovation and Entrepreneurship, 10(1), 1-16.
Ojha, D., & Kaur, H. (2021). Mobile money adoption in India: Opportunities and challenges. Journal of Payments Strategy & Systems, 15(1), 35-47.
Park, J. H., & Kim, H. Y. (2020). Factors influencing the adoption of mobile payment in South Korea. Sustainability, 12(5), 2035.
Pousttchi, K., & Schurig, M. (2004). Mobile payment in Deutschland. Frankfurt: Johann Wolfgang Goethe-Universität.
Raza, S. A., Standing, C., & Karim, A. (2016). Factors affecting adoption of mobile banking in Pakistan: Empirical evidence. International Journal of Bank Marketing, 34(3), 347-367.
Sultana, T., & Islam, M. S. (2021). Mobile Money in Bangladesh: Challenges and Opportunities. In Financial Technology and Innovation (pp. 67-90). Springer.
Wang, T., & Zhang, J. (2021). Mobile money adoption in China: Challenges and opportunities. Journal of Payments Strategy & Systems, 15(2), 97-113.
Zhu, Y., & Liu, Y. (2021). Mobile money adoption in China: An empirical study. Journal of Business Research, 131, 652-661.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Andrew Mweemba Nyika
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution (CC-BY) 4.0 License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
