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Comparison between existing alternative channels and mobile money: The reason for high preference and use of mobile money in Kenya

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This paper examines the reasons why mobile money has been a more preferred and popular channel to people who did not use formal financial service over other financial channels in Kenya. Results show that mobile money was a more efficient channel than other alternatives especially in aspects of cost and accessibility, and compared to informal and microfinance, people felt that mobile money was more reliable and secure channel which they can trust with their money. In addition, for people who did not have a bank account before mobile money, mobile money‘s saving function was the main purpose and reason for high preference for mobile money compared to other channels, satisfying their needs for a place to store money safely. As a result, mobile money significantly decreased overall proportion of financial exclusion (all p<.001) and after using mobile money the usage of other financial channels has also decreased.

Abstract

This paper examines the reasons why mobile money has been a more preferred and popular channel to people who did not use formal financial service over other financial channels in Kenya. Results show that mobile money was a more efficient channel than other alternatives especially in aspects of cost and accessibility, and compared to informal and microfinance, people felt that mobile money was more reliable and secure channel which they can trust with their money. In addition, for people who did not have a bank account before mobile money, mobile money‘s saving function was the main purpose and reason for high preference for mobile money compared to other channels, satisfying their needs for a place to store money safely. As a result, mobile money significantly decreased overall proportion of financial exclusion (all p<.001) and after using mobile money the usage of other financial channels has also decreased.

참고문헌 (39)

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