Mobile money, social capital, and financial behavior of. Pdf nigeria, like many developing economies has been fighting financial exclusion through different mechanisms and with financial inclusion. Mobile money services a bank in your pocket an overview of trends and opportunities 7 their accounts and to perform transfers and payments. Regulatory frameworks and implementation patterns for mobile money in africa. Ife ogunfuwamtn nigeria says it has registered about 108,000 mobile money agents across the country. The digital financial services landscape in nigeria. Department of economics, lagos state university, ojo, lagos.
Bank of ghana, 2016 the figures from the table show massive growth in mobile money in the year 2016, although there has been only 6,74% growth in number of voice subscribers, there was. African ecommerce startup jumia files for ipo on nyse. The question is no longer whether mobile money services are available, but how to ensure that the industry. It has used a quarterly volume of mobile money transactions and real gdp as proxies for mobile money development and economic growth respectively. I consumer protection in mobile financial services i 3. The resulting guidelines on international remittances through mobile money referred to as guidelines throughout the document illustrate how the mobile money industry and its partners are collaborating to ensure that international transfers conducted through mobile money are facilitated in. Submit your company and contact details and let us know what products or services you offer. Mobile banking is a financial service often available in developed countries, but not in most.
China and india, despite having relatively high account ownership, claim large shares of the global. This service is therefore only available to people who possess a formal bank account. The impact of mobile money on monetary and financial stability in subsaharan africa 1 background mobile money has helped reduce the financial exclusion gap in low and middleincome countries, particularly in subsaharan africa, which had almost 400 million registered accounts at the end of 2018. Nigerian banks ussd codes for mobile money transfers from your phone. Igbunu richard department of computer science, school of sciences, college of physical education, mosogar, delta state. The payer only needs to know the email address or phone number of the payee as a way to uniquely identify the recipient. The proliferation of mobile money services, particularly persontoperson transfer. International payments in a digital world accenture. It specifies basic functionalities expected of any mobile payment service and solution in nigeria. The ratings of lapo microfinance bank limited lapo mfb or reflect its strong competitive position as the market leader in the nigeria microfinance banking subsector by size. It is expected to bring massive benefits to an economy because it allows for a cheaper way to extend financial services to a larger number of peoplecurrent users of financial services.
Eserinune mccarty mojaye department of mass communication the faculty of social sciences delta state university, p. The objective of this study was to determine what happens to socialdriven structures like cooperatives when. Nigerias largest mobile money operator on tuesday announced the. With 271 services in 93 countries at the end of 2015, mobile money is now available in most developing and emerging markets gsma, 2016a. The number of subscribers to the 23 mobile money operators mmos in the country stood at 9. Atm, atmtobank and mobiletoatm funds transfer in nigeria among others as well as increase accessibility to. Mobile payments infrastructure access and its regulation ussd. Promoting payment digitisation in ghana via mobile money. Central bank of nigeria to issue these guidelines, to create an enabling environment for the orderly introduction and management of mobile money services in nigeria. Experience sharing national financial inclusion strategy in. Lessons to learn from kenyan mobile money success story. Because account ownership is nearly universal in highincome economies, virtu ally all unbanked adults live in developing economies. Read online regulatory framework for mobile money services in nigeria book pdf free download link book now.
Following recent illegal money transfer practices, where nigerians are lured into transferring funds through illegal money transfer operators, the central bank of nigeria cbn warned nigerians in the diaspora against patronizing these operators as it would be to their own peril. The central bank of nigerias regulatory framework addresses business rules governing the operation of mobile payment services in nigeria. Majority of the bank transfer codes in nigeria work on the four major broadband networks in the country, and the service charge is free. Why mobile money transformed kenya, but failed to take off. Mobil money business is becoming more and more popular in nigeria and many more people are going into it already. Pdf a sizeable number of people in developing nations, particularly africa countries are rural.
The number of mobile money accounts in nigeria increased from 5. The central bank of nigeria s regulatory framework addresses business rules governing the operation of mobile payment services in nigeria. Pdf framework for mobile money implementation in nigeria. Financial service providers central bank of nigeria home. The world is gradually drifting into a cashless era as people from all parts of the world are beginning to embrace the use of their mobile devices to make payments. Us state dept thinks africas leading mobile money platform. Money, mobile payment, mobile banking, mobile money transfer and mobile wallet generally refer to payment services operated under financial regulation and performed from or via a mobile device mobile payment is an alternative payment method. The mobile money industry has hoped to aid nigeria in meeting its financial inclusion targets but has not yet gained significant traction nor contributed much to achieving the central bank of nigerias cashless or financial inclusion policies. A guide to the nigerian mobile money market in 2015. Exploring the relationship between mobile money development. More widely, a facilitating regulatory environment can help unlock successful services in other m4d sectors closely aligned with economic growth and social improvement sri lanka is a good example, for which nigeria is a prime candidate. It could also be used for productive purposes such as investments, seeds or additional working capital for micro enterprises. This study addresses a gap in the literature regarding the payment and money transfer segment of fintech innovations in africa using a multiple case study methodology.
Mobile phone usage among nigerian university students and its impact on teaching and learning dr. Microfinance is the provision of financial services, such as loans, savings, insurance, money transfers, and payments facilities to low income groups. Instead of paying with cash, cheque or credit cards, a consumer can use a mobile phone to pay for a. According to the organization, about 35 per cent of the total amount of money in circulation is doing so on a formal basis.
Kyrgyzstan, morocco, mozambique, nigeria, sierra leone, and tanzania. List of cbn licensed money transfer operators nigeria. The gsma mobile money programme is working with mobile operators and industry. Working paper guidelines on international remittances. Since mobile money was introduced in nigeria in 2011, there have been reservations, ambivalence and criticism of the efficiency of the mobile money operators mmos in the payments ecosystem, with most critics citing. People are looking for ways to make money and mobile money has.
This guideline addresses business rules governing the operation of mobile money services, and specifies basic functionalities expected of any mobile payment service and. Regulatory frameworks and implementation patters for mobile. Mobile money services design and development for financial. It took a while to catch on but nigerians are finally using mobile money over the past decade, financial institutions and telecoms operators, sometimes in collaboration, as well as standalone firms have tried to deploy mobile money services in africas largest economy with mixed success.
Lapo mfb is one of eight microfinance banks mfbs licensed to operate nationally in nigeria presently. Africa is already a world leader in mobile money, but now we are also seeing developments such as the rapid growth in online shopping in nigeria, and a proliferation of digital ventures and services. Mobile money, social capital, and financial behavior of women. Pdf adoption and use of mobile money services in nigeria. Et une meilleure efficacite des allocations sociales qui ne transitent. The objective of this study was to determine what happens to socialdriven structures like cooperatives when they interface with mobile money technologies. Informal sector gdp contribution, link to formal sector, contribution to. Glo xchange is the first superagency network for licensed mobile money operators in nigeria. The results of this research offer some implications for other african countries such as south africa, mauritius, and kenya. The central bank of nigeria implements a mobile banking framework in collaboration with the deposit money banks, payment service providers and other stakeholders. All books are in clear copy here, and all files are secure so dont worry about it. Research report making sense of mobile money in urban ghana.
Which companies are licensed to offer mobile money. Central bank of nigeria regulatory framework for mobile. Mobile money mobile money is a service whereby customers use their mobile phone device to send and receive monetary value or more simply put, to transfer money electronically from one person to another using a mobile phone as mobile wallet. Providing a monthly assessment report on the performance in prescribed format, and the submission of same to the banking and payment systems department. The mobile money system, mpesa, which began in kenya, is a typical example of success and pioneering, which has had a ripple effect on not only countries nearby but also other subsaharan countries, although there are examples of mobile money diffusion failure like nigeria. Under the existing guidelines, a total of 21 mobile money operators licenses have been issued by the cbn. Citation and commencement these guidelines may be cited as the bank of uganda mobile money guidelines, 20 and shall come into force on october 1, 20. Mobile money operators typically leverage an agent network to. Cbn moves to facilitate card preauthorisation for payment. Abstract this paper explores existing models of mobile money services currently experimented around the world including nigeria. Exxonmobil is committed to meeting the growing demand for energy and to power the world responsibly.
We drew together information from multiple sources, including semistructured interviews. The digital financial services landscape in nigeria enabling. The classic example is the nonbankissued mobile money account that is popular across regions such as africa, but the definition extends to bankissued, lowvalue accounts in markets such as mexico and pakistan. Mar 06, 2017 mobile money providers like mpesa have disrupted traditional financial systems in many countries in ways conventional banks could only dream of. We see very different patterns of financial development in respect of mobile money. Regulatory impact on mobile money and financial inclusion. Mobile money services in nigeria introduction of bank verification number regulatory framework for licensing super agents in nigeria release of the microinsurance guidelines revised guidelines on the electronic payments of salaries, pensions, suppliers and taxes in nigeria setup of the financial inclusion secretariat in cbn guidelines on.
The development of mobile money mmoney will facilitate access to finance. Regulatory impact on mobile money and financial inclusion in. Using mobile technology to improve maternal health and. Mobile money started as a payment continue reading why mobile money transformed kenya, but failed to. With a workforce of more than 70,000 employees, our careeroriented approach to developing an exceptional workforce includes recruiting outstanding talent and supporting longterm professional. Mobile money, social capital, and financial behavior of women s cooperatives in rural nigeria. Mobile money transactions in nigeria hit n985bn yearly mobile money transactions in nigeria hit n985bn yearly on june 15, 2015 12. Onyima jude kenechi and onugu charles uchenna abstract. Mobile financial services consumer protection in mobile. Exxonmobil upstream affiliates operating in nigeria are mobil producing nigeria unlimited mpn and esso exploration and production nigeria ltd. The case of kenya, ghana and nigeria idongesit williams cmi, aalborg university copenhagen.
Its economic benefits and challenges okifo joseph department of business education, school of vocational education, college of physical education, mosogar, delta state. However, there are still some of the codes that dont work on a particular network, and some transaction may cost you a little service charge. There was a time when the concept of atms and atm cards was still new in nigeria and the populace was simply in awe of how convenient it was to just simply withdraw, or transfer money from a machine rather than having to wait in line in the banking hall. Using mobile technology to improve maternal health and fight. Paga partners flutterwave for simpler payment solution. Background these guidelines address mobile money issues. Mobile money was the first digital revolution and it has not lost its momentum, nearly doubling in the last three years. Mobile bankingpayments regulatory framework in nigeria. The types of accounts included for each country are listed in digital finance and. This study has aimed at exploring the nature of the relationship between mobile money development and economic growth in nigeria. This is an exhaustive list of live mobile money services in nigeria, only these companies have commercial licenses to operate mobile money services in nigeria. Regulatory frameworks and implementation patters for.
What are the benefits of using a mobile money account mobile money is a service that is still relatively new in nigeria and one of the things people would like to know is if there are really any benefits for having a mobile money account monday october 28, 20 10. The paper focuses on innovative mobile phones money and banking options in four african countries kenya, nigeria tanzania an d uganda. Energy and environment we are committed to meeting the growing demand for energy, while at the same time reducing the environmental impacts. The digital financial services landscape in nigeria usaid. Mar 12, 2019 african ecommerce startup jumia files for ipo on nyse. The impact of mobile money on monetary and financial. Working paper guidelines on international remittances through. Download regulatory framework for mobile money services in nigeria book pdf free download link or read online here in pdf. This paper proposes a framework for mmoney implementation in nigeria as a poverty alleviation. Nigeria namibia south africa botswana mozambique 82% 17% 1% 500 85% 11% 4% 5 82% 15% 3% 491. However, voter cards and thirdparty identification documents are accepted for financial. These mobile money accounts allow people to store money and to send and receive electronic payments. This year ive seen a wide range of exciting ways in. Mobile money transactions in nigeria hit n985bn yearly.
The development of mobile payment services is an important financial innovation. This is one of the organization commissioned by cbn to run mobile money in nigeria. Following the recent grant of licenses to mobile money service providers by cbn, usa in conjunction with its associate company, afripay limited, has been in the mobile transfer business, being the first of the first set of 11 licensees, to roll out commercially, since launching nigeria s first mobile money service, umo u mobile in lagos. Mobile financial services in ghana subregional workshop on mobile money in west africa, 14 th to 16 march 2016, freetown sierra leone presented by. A guide to the nigerian mobile money market in 2015 the. Note that there can be multiple regulators involved in the regulation of mobile money, the most common being financial and telecommunications regulators. Mobile money is a tool that allows individuals to make financial transactions using mobile. Begin your journey to becoming a supplier for mtn group.
Mobile payments infrastructure access and its regulation. Technology is also accelerating wider engagement with the financial system through internetenabled payments and data analytics. Tutorial and guide on how to troubleshoot, find faults and problems and how to repair any mobile cell phone of any brand including iphone, blackberry, nokia, samsung, htc, china mobile phone etc. Framework for mobile money implementation in nigeria. In nigeria, mobile phones have been instrumental to the rapid increase in. This article compares the impact of mobile money on kenya, the largest economy in east africa, with its impact on nigeria, the largest economy in west africa and africa as a whole. Starting in nigeria, the company created many of the components for its digital sales operations. The resulting guidelines on international remittances through mobile money referred to as guidelines throughout the document illustrate how the mobile money industry and its partners are collaborating to ensure that international transfers conducted through mobile money are facilitated in a safe and secure manner.
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