An Investigation of the Adoption of Mobile Money Transfer Service in Somaliland

AN INVESTIGATION OF THE ADOPTION OF MOBILE MONEY TRANSFER SERVICE IN SOMALILAND

SA’AD ABDIRISAK AHMED

A dissertation submitted in fulfilment of the requirement for the degree of Master of Information Technology

Kulliyyah of Information & Communication Technology International Islamic University Malaysia

SEPTEMBER 2015

ABSTRACT

The production of handheld devices and the high-speed mobile network have created another revolution in the world of commerce. Especially mobile commerce which is thought to be the next phase in technologically dependent society. Mobile Money Transfer Service is a type of mobile commerce which is mainly developed by Network Providers and Banks. This new service which is a new payment solution has emerged as part of mobile commerce. Thus, this study aims at examining the factors influencing customers’ adoption of Mobile Money Transfer Services in Somaliland. Technology Acceptance Model (TAM) with two extra constructs were used to form the theoretical framework of the study. Therefore, the model comprises of four independent variables; Perceived Ease of Use, Perceived usefulness, Perceived Trust and Perceived Risk, and one dependent variable; Behavioral Intention to use and adopt the Mobile Money Transfer Service in Somaliland. The population of the research comprised of Somaliland citizens who reside in the country and use the service. The study used simple random sampling technique to select the participants. Out of 384 questionnaire that were distributed, 201 valid responses were received. Apparently, the research involved Telesom Telecommunication company customers who use Mobile Money Transfer services in Somaliland which is known as Zaad Service. In analysing the data collected, various statistical methods and techniques were used. Such tools are; the use of descriptive analysis in analysing respondents profile, multiple regression analysis for measuring relationships between variables, T-test for testing the influence of gender on relationships and ANOVA for testing the influence of different age groups on relationships. The results show that Perceived Ease of Use, Perceived Usefulness and Perceived Trust has positive significant influence on Behavioral Intention of customer’s use and adoption the service while Perceived Risk did not have any significant influence. The extended model explained 75 percent of consumer’s intention to use and adopt Mobile Money Transfer Service. In addition, the result show that there are no significant difference by gender on the influention to use the zaad service, but there are significant difference across different age groups.

خالصة البحث ABSTRACT IN ARABIC

إن انتاج اهلواتف احملمولة وشبببببببوااف اهلواتف اذتىوال روة العببببببب أة ال الرة يف امل وال أا التجاال. خاصببببببة ا التجاال اذتليت ة الد أ تيت ان تاون األبببببباألببببببا لمعراع اليتا ة تم أ تم أ ى التالولوعرببا. خبب ببة ألوأبب ا واع ابهلبباتف نوم ا التجبباال اذتليت ببة الد ر تىوأ قببا ا يفوبب شببببببب صاف اوتملببببببباوف واذملبببببببااص. ق ح ال ة اال أ ل اصبببببببو مل ل او واع ابهلاتف ور تملبببببببببلمن ا عجا ا التجاال اذتليت ة. وقا ا ل ص ق ح ال ااألبببببببببة إيت ااألبببببببببة ال وا الد ت اأتما خ ة ألوأ ا واع ابهلاتف صببو اون . واألببت ال ااألببة بورج يفووع التالولوعرا ا لني ا واب إضا رة لتشار اإلطاا اللظ ي ل ااألة. ل لك ان اإلطاا اللظ ي أتألف ا اابة تغرياف عبببببببببتيت ةس ألببببببببب ولة األبببببببببت او الناى ل الليتة واذ اط و تغري م عبببببببببتيت س اللرة وألبببببببب وصرة األببببببببت او واأتما خ ة ألوأ ا واع ابهلاتف ا صببببببببو الر ن . ألبببببببباان الو ق اذواطلون ال أا أيترمون اخ الو واألبببببت ال ااألبببببة األببببب وئ ال رلة ال شبببببواىرة الوعبببببرىة لت أ اذشبببااصني. وصان ال و 201 صبببامة ا اصببب 384. أ ى ا أو و شببباا ا الو أم ء أعببببببت ون خ اف شبببببب صة تر رعببببببوو ل تملبببببباوف العبببببب ارة وال ألبببببب ارة خاصببببببة أم ء أعبببببببببببببت ون خ ة ألوأ ا واع ابهلاتف ال ي أ ص ابألببببببببببببب خ ة ا . ب الورا ف ر األبببببببت او األبببببببالر وتيتلراف بت ف لت ر الورا ف. ا ا واف الح األبببببببت الت ر ف الوصبببنرة والد إألبببت و أل ر الشببب ملبببراف ا ال ااألبببة اأ بببا أل ر اودح اا اذت وال ة إألبببببببببببببت بب بب ليترببا ال يفببة بني اذتغرياف ور أمبب إختوببااف ل ميتبباانببة بني االلعبببببببببببببني. واخريا األبببببببت م ا نو ا لت ر تغري ال م . وتوني اللتاىف ان الناى ل وألببببببب ولة وألبببببببت او والليتة هلا ري صوري أ ى نرة وألبب وصرة األببت او واأتما ال ة ملني أاا ري صوري ذتغري اذ اط . واوضبب اإلطاا اللظ ي ل ااألببببببببببة ان 75 اذئة ا نرة اذعببببببببببت و ر أل أ ح ا اذتغرياف. صما تظ اللتاىف اي اخت ص صوري ملعببببببببب نوم االل،. واخريا ألايف ال األبببببببببة امنا اذ توة أ ى ص ا اذببببببببببمببببببببببااألبببببببببببببببببببببببني وا صببببببببببا ببببببببببرببببببببببني وصبببببببببب لببببببببببك ايفبببببببببب املبببببببببباف إلعبببببببببب اء ببببببببببجأبببببببببب ببببببببببا الو وث.

iii

APPROVAL PAGE

I certify that I have supervised and read this study and that in my opinion, it conforms to acceptable standards of scholarly presentation and is fully adequate, in scope and quality, as a dissertation for the degree of Master of Information Technology.

………………………………….. Ishaq Oyebisi Oyefolahan Supervisor

I certify that I have read this study and that in my opinion it conforms to acceptable standards of scholarly presentation and is fully adequate, in scope and quality, as a dissertation for the degree of Master of Information Technology.

………………………………….. Mohamed Razi Jalaldeen Examiner

This dissertation was submitted to the Department of Information Systems and is accepted as a fulfilment of a requirement for the degree of Master of Information Technology.

………………………………….. Asadullah Shah Head, Department of Information Systems

This dissertation was submitted to Kulliyyah of Information and Communication Technology and is accepted as a fulfilment of a requirement for the degree of Master of Information Technology.

………………………………….. Abdul Wahab Abdul Rahman Dean, Kulliyyah of Information and Communication Technology

DECLARATION

I hereby declare that this dissertation is the result of my own investigation, except where otherwise stated. I also declare that it has not been previously or concurrently submitted as a whole for any other degrees at IIUM or other institutions.

Sa’ad Abdirisak Ahmed

Signature……………….……. Date …......

INTERNATIONAL ISLAMIC UNIVERSITY MALAYSIA

DECLARATION OF COPYRIGHT AND AFFIRMATION OF FAIR USE OF UNPUBLISHED RESEARCH

AN INVESTIGATION OF ADOPTION OF MOBILE MONEY TRANSFER SERVICE IN SOMALILAND

No part of this unpublished research may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise without prior written permission of the copyright holder except as provided below.

1. Any material contained in or derived from this unpublished research may be used by others in their writing with due acknowledgement.

2. IIUM or its library will have the right to make and transmit copies (print or electronic) for institutional and academic purposes.

3. The IIUM library will have the right to make, store in a retrieval system and supply copies of this unpublished research if requested by other universities and research libraries.

Affirmed by Sa’ad Abdirisak Ahmed

……..……..…………… ………………….. Signature Date

DEDICATION

This document is dedicated to my parents, my Uncle Mohamed Ahmed Abdilahi and Aunt Khadra Ismail.

vii

ACKNOWLEDGEMENTS

First and foremost, I am thankful to Allah SWT, the Most Gracious and the Most Merciful for giving me the chance to pursue Master Degree. Without His blessings I would not have the strength and patience to complete this study successfully.I would like to express my sincere gratitude to my supervisor Dr. Ishaq Oyebisi Oyefolahan for his guidance, patience, ideas, efforts and valuable teachings and advices throughout the entire process of writing this research paper. I would not be able to complete this study successfully without his assistance, guidance, and supervision.I would also like to register my special thanks to all KICT lecturers for their teachings and support in successfully completing my Master program and at the forefront of them our respectful dean Prof. Dr. Abdul Wahab Abdul Rahman. I would also like to extend my heartfelt thanks to my friends Abdurahman Mussa, Mohamed Saeed, Shuaibu Hassan and Abdulfatah for their support, friendship and suggestions in completing this study. Finally, I would like to write my deepest gratitude to my parents, my uncle, aunt, my siblings for their love, care and deep concern for me in their life. Thank you all

viii

TABLE OF CONTENTS

Abstract ...... ii Abstract in Arabic ...... iii Approval Page ...... iv Declaration ...... v Copyright Page ...... vi Dedication ...... vii Acknowledgements ...... viii List of Tables ...... xi List of Figures ...... xii List of Abbreviations ...... xiii

CHAPTER ONE: INTRODUCTION ...... 1 1.1 Background of study ...... 1 1.2 Research Problem ...... 2 1.3 research scope ...... 3 1.4 Objectives of the research ...... 4 1.5 Research Questions ...... 4 1.6 Significance of the study ...... 5 1.7 Chapter Summary ...... 5 1.7.1 Chapter two: literature review...... 6 1.7.2 Chapter Three: Research methodology ...... 6 1.7.3 Chapter Four: results and findings ...... 6 1.7.4 Chapter FIve: Discussion and Conclusion ...... 6

CHAPTER TWO: LITERATURE REVIEW ...... 7 2.1 Overview...... 7 2.2 Mobile Money Transfer Service (MMTS) ...... 7 2.3 The Usage Of Mobile Money Transfer Services ...... 11 2.4 Mobile Money Transfer Service In Somaliland ...... 13 2.5 Background Framework ...... 15 2.5.1 Theory of Expectance Value ...... 15 2.5.2 Theory of Reasoned Action ...... 15 2.5.3 Technology Acceptance Model (TAM) ...... 16 2.5.4 Research Model...... 18 2.5.4.1 Perceived Ease of Use (PEOU) ...... 19 2.5.4.2 Perceived Usefulness (PU) ...... 20 2.5.4.3 Perceived Trust (PT) ...... 21 2.5.4.4 Perceived Risk (PR) ...... 22 2.5.4.5 Moderating Variable of Gender ...... 23 2.5.4.6 Moderating Variable of Age ...... 24 2.6 Chapter Summary ...... 26

CHAPTER THREE: METHODOLOGY ...... 27 3.1 Introduction...... 27 3.2 Research Population ...... 27

3.3 Sample Size ...... 28 3.4 Saqmpling Procedure ...... 29 3.5 Research Instrument ...... 30 3.6 Data Collection ...... 31 3.7 Analysis ...... 32 3.8 Pilot Study ...... 33 3.8.1 Description Of The Respondents ...... 33 3.8.2 Reliability And Validity Analysis ...... 34 3.1 Chapter Summary ...... 35

CHAPTER FOUR: RESULTS AND FINDINGS ...... 36 4.1 Introduction...... 36 4.2 Demographic Profile ...... 36 4.3 Exploratory Factor Analysis ...... 39 4.4 Descriptive Profile of Mobile Money Transfer Service Patterns of Use Variables ...... 41 4.4.1 Perceived Ease of Use (Peou) ...... 41 4.4.2 Perceived Usefulness (Pu) ...... 42 4.4.3 Perceived Trust (Pt) ...... 43 4.4.4 Perceived Risk (Pr) ...... 44 4.4.5 Empirical Results ...... 45 4.5 Correlation Analysis ...... 47 4.6 Multiple Regression Analysis ...... 47 4.7 Independent T-Test ...... 51 4.8 Chapter Summary ...... 55

CHAPTER FIVE: CONCLUSION AND RECOMMENDATIONS ...... 56 5.1 Introduction...... 56 5.2 Discussion ...... 56 5.3 Summary of Results of Research Questions and Hypotheses ...... 57 5.3.1 Research Questions ...... 57 5.3.1.1 Research Question One ...... 57 5.3.1.2 Research Question Two ...... 58 5.3.1.2.1 Hypotheses 1 ...... 58 5.3.1.2.2 Hypotheses 2 ...... 59 5.3.1.2.3 Hypotheses 3 ...... 59 5.3.1.2.4 Hypotheses 4 ...... 60 5.3.1.3 Research Question Three ...... 61 5.3.1.3.1 Hypotheses 5,6,7 and 8 ...... 61 5.3.1.3.2 Hypotheses 9, 10,11 and 12 ...... 62 5.4 Limitation And Future Research ...... 63 5.5 Implication ...... 63 5.6 Conclusion ...... 64

REFERENCES ...... 66 APPENDIX A ...... 71 APPENDIX B: FACTOR ANALYSUS AND RELIABILITY RESULTS ...... 76

LIST OF TABLES

Table No. Page No.

2.1 MMTS Deployment Launched in Developing Countries Since 2003 9

3.1 Determining Sample Size from a Given Population 29

3.2 Questionnaire Items and Sources 31

3.3: Descriptive Statistics and Reliability 34

4.1 Demographic profile of the respondents 37

4.2: Respondent’s Usage of The Mobile Money Transfer Service 39

4.3: Results of Factor Extraction and Factor Loading 40

4.4: Descriptive Statistics, Reliability, and validity 41

4.5: Perceived Ease of Use 42

4.6: Perceived Usefulness 43

4.7: Perceived Trust 44

4.8: Perceived Risk 45

4.9: Perception and Acceptance of Mobile Money Transfer Service 46

4.10: Correlations 47

4.11: Regression Analysis Results for the Constructs 50

4.12: Independent t-test for influence of Mobile Money Transfer Service by gender 51

4.13: The influence of Mobile Money Transfer Service by age 52

4.14: Summary of the hypotheses statement 54

LIST OF FIGURES

Figure No. Page No.

2.1 Theory of Expectance Value 15

2.2 Theory of Reasoned Action 16

2.3 Technology Acceptance Model (TAM) 17

2.4 Research Model 18

4.1 Influential Factors on Mobile Money Transfer Service 50

4.2 Influential Factors on Mobile Money Transfer Service in terms of age and gender 53

xii

LIST OF ABBREVIATIONS

IIUM International Islamic University Malaysia KICT Kulliyyah of Information and Communication Technology

xiii

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF STUDY

Telecommunication is a successful industry in Somaliland, which has been developed mainly by the private sector. Hence, these private companies have invested in GSM cellular telephony and satellite networks provide cheap landlines, mobile phone and internet services with the lowest international calling rates with high quality (Sayid &

Echchabi, 2012). Taking the advantage of their growth in mobile telecommunication service in the country, they expanded their services by venturing into financial services across wireless networks, thereby creating the potential for significant growth in mobile commerce and financial inclusion.

Telesom is one of the telecommunication companies that has rapidly grown and spread it is network in all over the country. Telesom introduced “Mobile Money

Transfer Service” to Somaliland society for the first time in 2009 with the brand name of Zaad Service. Zaad Service allows customers to perform financial transactions with their mobile phones (Sayid & Echchabi, 2012). An example of such a services include; deposit money, save, transfer, pay bills, purchase goods and services, and use it as Top-

Up E-voucher. The service had quickly become popular in the community and gained a lot of customers in short time, and now more than 40% of Telesom customers use the

Mobile Money Transfer Services (eServGlobal Limited, 2013). Furthermore, ZAAD service is acknowledged as one of the most successful Mobile Money Transfer Service in the world (eServGlobal Limited, 2013).

In addition, the World Bank’s Global Financial Inclusion Database recognized

Somaliland Mobile Money as one of the most interesting markets. Four years after the service was launched 26% of the populations use the service to pay their bills, which is the highest rate in the world, and 32% use the service to send and receive money

(eServGlobal Limited, 2013). Although, the reason behind the wide use can be explained as Telesom being the only company which provide e-payment service in the country, Telesom Zaad Service, works like M-Pesa-Kenya, Gcash-Philippines, Smart-

Philippines, Easy paisa-Pakistan, Eco Cash-Zimbabwe and MTN-Ghana. (Rural

Finance Knowledge Management, 2013).

Mobile Money Transfer Service is the beginning of new sector that start emerging in the last two decades. To understand the use and acceptance of Telesom customers of such a service, this study examines factors influencing the adoption of

Mobile Money Transfer Services among Telesom customers.

1.2 RESEARCH PROBLEM

The Somali government collapsed in 1991 by civil wars, which led to the destruction of the basic services of the financial system, whereby the central bank of Somali and the entire banking system were destroyed (Sayid & Echchabi, 2012). As a result, private

Money transfer companies/remittance sprang, sprouted companies to cover the need of the society in term of banking services. They delivered some of the basic banking services that led them to become the major financial institutions in the country.

The absence of a central bank and it is power in the country to regulate and establish banking system, the remittance companies provide some of the banking services to the community that include saving account, accepting deposits in the current, and public deposit. Furthermore, these agencies transfer money for customers through

their branches around the world, and also work as local money exchange agencies

(Abdusalam, 2002).

On the other hand, Telesom Company emerged to facilitate the financial transaction of Somaliland citizens to move from rough transaction into cashless economy. This company provides the cashless services with an objective of bringing financial inclusion to the entire country. The service has widely covered about 40% or more in the areas where 50% of the society are not formally educated. Moreover, the society has not experienced cashless transactions because there is no active banking system in the country. Not only banking system was down, but also all electronic payment systems are completely new and challenging to the society. Hence, persuading the customers to use the cashless services by means of mobile money introduced by

Telesom Company will be even more challenging.

Several researchers had carried out studies on the Mobile Money Transfer

Services around the globe and agreed among themselves on the usefulness of the service

(Chen H. , 2008; Stalfors & Rasmus, 2011; Kuwornu & Tobbin, 2011). However, there is no study being conducted on the factors influencing the adoption of Mobile Money

Transfer Service in Somaliland. There is possibility of risk that consumers may face regarding the service in case of bringing an active banks in the country. Thus, this study examines the factors that can sustain the adoption of Mobile Money Transfer Service among Telesom customers in Somaliland.

1.3 RESEARCH SCOPE

This study is conducted to determine the acceptance of Somaliland Telesom customers to the Mobile Money Transfer Service and the factors affecting the intention of the customer to use the service. Considering the need of the service by customers, it is

usefulness, how much trust they have for the service and whether that trust influences their adoption of the service.

This research is limited to the service of Mobile Money Transfer Service (i.e. Zaad

Service) in Somaliland. The survey was conducted in Somaliland targeting the resident population whose ages are more than 18 years old. The reason is that adult customers are the common users of the service in the society which include: employees, employers and other stakeholders in the private sector.

1.4 OBJECTIVES OF THE RESEARCH

The main objective of this research is to examine the perception of the Mobile Money

Transfer Service users in Somaliland and to determine the main factors that influence their intention to use and adopt the service. The specific objectives are:

1. To understand the current level of the adoption and usage of Mobile Money

Transfer Service among Telesom customers in Somaliland

2. To determine the significant factors that influence Mobile Money Transfer

Service among mobile users in Somaliland

3. To examine if there is any significant difference in terms of the moderating

variables of gender and age on the factors that influence the adoption of

Mobile Money Transfer Service among Telesom customers in Somaliland

1.5 RESEARCH QUESTIONS

1. What is the current level of usage of Mobile Money Transfer Service among

Somaliland Telesom customers?

2. What are the significant factors that influence the adoption Mobile Money

Transfer Service among Somaliland Telesom customers?

3. Is there any significant difference in terms of the moderating variables of

gender and age on the factors that influence the adoption of Mobile Money

Transfer Service among Somaliland Telesom customers?

1.6 SIGNIFICANCE OF THE STUDY

The findings of the It is expected that the finding of this study will be highly appreciable on this out emerging technology in Mobile Money Transfer Service, in particular. The study intends to reflect detail about what is desired in order for customers to accept this initial service. By providing the perception of the customers in terms of the usefulness of the service and it is ease of use. The research also provides measurable result about the perception of the people in terms of the security and trust. To the service provider, it is consent for improvement in strategies to attract potential users of the service and to the policy makers, it provides hindsight about the areas that should be emphasized to develop the Mobile Money Transfer Service in Somaliland. Finally, this study intents to help the research community in finding references about Mobile Money Transfer

Service as it is the first study being conducted in Somaliland.

1.7 CHAPTER SUMMARY

This is the first chapter of the research which provides an introduction to the research, the problem statement which the research is solving, the objectives that the research intends to accomplish and the research questions that the study intends to answer. The rest of the chapters will be:

1.7.1 Chapter two: literature review

This chapter previews, literature review that is related to the field of Mobile Money in general. After that it is analyses the previous literature in the field of mobile money using the same method and relate it to the current study. The chapter also previews the factors that affect the adoption of the service in different countries. Finally, the framework of the research is developed and displayed at the end of the chapter.

1.7.2 Chapter Three: Research methodology

This chapter describes the research design and methodology that used to test the research hypotheses and asses the research model. The chapter also reveals the

Sampling technique, data collection method and the population of the research. It also includes the questionnaire development, tools and techniques used to analyze the data.

1.7.3 Chapter four: results and findings

This chapter discusses the data collected through the questionnaire. Descriptive statistics; factor analysis and regression analysis are presented as the underlying factors affecting of Mobile Money Transfer Service in Somaliland. The chapter also presents the result of each factor’ and their theoretical and practical implications of the findings.

1.7.4 Chapter five: Discussion and Conclusion

This chapter contains shows the final discussions and the conclusions of the study. It also provides recommendations in addition to the limitations of this study plus potentials for further analysis. Furthermore, the chapter presents an implications for both academia and practitioners.

CHAPTER TWO

LITERATURE REVIEW

2.1 OVERVIEW

Traditional Money transfer services are fading out, but the development of electronic transfers which apply competing for consumer market share are emerging. The development of these new services is based on technological availability and lower cost services (Merritt, 2011). Mobile Money Transfer is a service that has been developed for the next generation of wireless payments. John (2011) defined Mobile Money

Transfer Service as a facet of a wider concept appearing in the electronic payment and banking industry. The reason for its development is to provide financial services to the unbanked people through the mobile technology. In terms of mobile phones, it is usage has covered all over the world, and that proves an existence of an explosion of interest in mobile phones and how they can contribute to socioeconomic development (Medhi,

Gautama, & Toyama, 2009). Also, Mobile Money can be described as money that can be accessed and used via mobile phone (Beth, 2008).

2.2 MOBILE MONEY TRANSFER SERVICE (MMTS)

The development of the technology in the world especially wireless communication has increased the expectations of the people to improve their daily life. These hopes were even higher in the developing countries where fixed land line penetration and consequently, computer-based internet access is very low (Joubert & Belle, 2013).

Furthermore, there are about 2.5 billion adults in the world who do not have the ability to use the basic financial service and are categorized into unbanked people. (Financial

Access Initiative Focus Note, 2009). The Unbanked are those consumers without official bank Accounts and operate in a cash economy. Those consumers are limited in their ability to borrow money, maintain savings, or make remote payments, and these constraints can inhibit their economic opportunities (Medhi, Nagasena, & Toyama,

2009). The banks who supposed to deliver the service to these people, unfortunately do not see it economically attractive to deploy banking infrastructure and bank employees to poor and rural areas. The poor people or low income customers are left to use informal financial tools which are the same time expensive, inconvenient and risky. Therefore, there should be a way to help the poor, and there should be a product that better meet poor people’s financial needs.

The development of a new service started by Banks, Mobile Operators, and

Payment system providers with branchless banking models had emerged. This new service has been named Mobile Money Transfer Service. Also has the merits to reduce the cost of delivering financial services into local retail shops, where customers register new accounts and convert their money into electronic value.

Mobile Money is a form of electronic money where the real money is converted into E-money and put into the mobile in a form of digits to make the transfer easy for the users. A user can transfer an amount of money to another E-money users with the same service. In other words, Mobile Money Transfer Service is simply another way to exchange money from sender to receiver after depositing the currency into a mobile or

“virtual” wallet. A mobile wallet is an electronic account that is linked to a person’s mobile phone in which money can be electronically deposited and used the same as cash

(Rahman, Abdullah, & Tooheen, 2012).

People use Mobile Money Transfer Services to conduct a number of different transactions. For example: to pay for goods, service and bills with their mobile devices,

including Mobile phone, smart-phone, or personal digital assistant (PDA) which are using wireless and Mobile telecommunications networks and proximity technologies.

The service can be described as phone-based cash savings and transfer system, which turns a GSM phone into a savings account that provides the user an advantage to save money in it, withdraw and transfer it whenever there is a need (Ayodele, Esther, Ayo,

& Marion, 2013).

The experience of the world with Mobile Money Transfer Service was not that remarkable. The first country that adopted the service was the Philippines. SMART

Money lunched the service in 2003, and now more than 70 services had been launched across 42 developing countries (Mas, Radcliffe, & Foundation, 2010).

Table 2.1 MMTS Deployment Launched in Developing Countries Since 2003

Launched 2003-2008 Country Promoter Name Afghanistan Roshan M-Paisa 2008 Cambodia WING Wing Money 2008 China China Unicom SmartPay 2008 Paraguay Tigo (Millicom) Tigo Cash 2008 Tanzania Vodacom M-PESA 2008 Tanzania Zantel (Etisalat) Zpesa 2008 Uganda MTN Mobile Money 2008 Brazil Oi Oi Paggo 2007 Kenya Safaricom M-PESA 2007 Kuwait Mpay Mpay 2007 Malaysia Maxis M-money 2007 Vietnam m-service m-Service 2007 Bangladesh Grameenphone BillPay 2006 China China Mobile LianLian 2004 Philippines Globe GCash 2004 South Africa WIZZIT WIZZIT 2004 Zambia CelPay CelPay 2004 Philippines SMART SMART Money 2003

Launched 2009

Country Promoter Name

Argentina Movistar NaranjaMo Brazil Vivo Unknown Colombia DDDedo DDDedo Cote d'IvoireMTN Mobile Money Cote d'IvoireOrange Orange Money Ecuador America Movil Ecuador Telefonica Mobile Money Ghana Txtnpay TXTNPAY Ghana MTN Mobile Money India Eko Eko India Corporation Bank Green Money India Suvidha Beam Kenya Bharti Airtel/Zain Zap Malaysia Celcom AirCash Mongolia Xac Bank AMAR Nigeria MoneyBox MoneyBox Pakistan Tameer / Telenor easypaisa Rwanda MTN Mobile Money Sierra LeoneSplash Mobile Splash Cash South Africa MoPay MoPay South Africa Standard Bank Community Banking Tanzania Bharti Airtel/Zain Zap Uganda Bharti Airtel/Zain Zap Zambia Mobile TransactionsMobile TX Launched 2010 Country Promoter Name Bangladesh Orascom Banglalink Burundi Econet Wireless EcoKash Cameroon MTN Mobile Money Chile Entel Cuenta Mobil Domin. Rep. Tpago Tpago Egypt Masary Masary Fiji Digicel Mobile Money Fiji Vodafone M-Paisa Ghana Bharti Airtel/Zain Zap India Nokia Money Nokia Money India Tata Teleservices mChek Indonesia Telkomsel T-cash Iraq Asiacell Unknown Kenya Yu Telecom yuCash

Madagascar Orange Orange Money Madagascar Telma mVola Malawi Bharti Airtel/Zain Zap Mali Orange Orange Money Morocco Maroc Telecom MobiCash Niger Orange Orange Money Niger Bharti Airtel/Zain Zap Pakistan UBL Omni Senegal Orange (Sonatel) Orange Money Sierra LeoneBharti Airtel/Zain Zap Somalia Somtel Zaad Somalia Hormuud Telecom Zaad South Africa First Natl. Bank Send Money South Africa Vodacom M-PESA Tanzania Tigo Tigo Pesa Uganda Uganda Telecom M-Sente Zambia Bharti Airtel/Zain Zap

Source: GSMA Mobile Money Deployment Tracker and Gates Foundation AnalysisMobile (2010)

2.3 THE USAGE OF MOBILE MONEY TRANSFER SERVICES

Mobile phones are available everywhere and they are in the hands of everyone, they had become part of human’s daily life. Mobile phones are used for communication and some basic services; to know the time, use the calculator and to make notes on the calendar for important days. People still use them for those basic services with a better quality and that is not all. Now they use them for advanced services like games, internet, banking, payments and informational services, and that has extended its usage from a traditional voice communication to other value added services.

The financial transaction is one of the interesting services that had been added to the mobile phones in the recent decades. Mobile Banking, Mobile Money and Mobile

Payment services are services developed by banks, telecommunication companies and