Determinants of mobile money technology adoption in rural areas of Africa

Adoption of mobile money technology in peripheral regions of Africa where conventional banking services are entirely lacking is very important for financial inclusion. Although the population of mobile money users has recently increased, its adoption in rural areas remains low. This study investigates the determinants of mobile money adoption in rural areas of Africa. Data from Research ICT Africa Access Survey were analysed with the two-part model. The first part involves the adoption of mobile money; second part, how much money was sent or received using mobile money. Relative to other means of sending or receiving money, 88%, 83%, 78%, 80%, and 89% agreed that mobile money is easier, safer, more trustworthy, more convenient, and faster, respectively. Two-part model findings show that age, years of education, unemployment, and ownership of bank accounts explain both the adoption and the amount of money sent using mobile money technology. Conversely, age, bank account ownership, and net monthly income determine both the adoption of mobile money and the amount of money received using mobile money technology. We recommend that mobile money operators target rural dwellers that are young and educated with a net monthly income in their marketing strategies in order to encourage its adoption among the unbanked.