FII_Myths_printer.pdf
1
5/1/15
12:17 PM
DISPELLING MYTHS, BUILDING KNOWLEDGE:
THE REAL USES OF MOBILE MONEY
In Kenya, Tanzania and Uganda, consumers are engaging
in active and advanced mobile money use
MYTH: Mobile money is only about “Send
money home!”
The top uses for mobile money among rural users in
Kenya, Uganda and Tanzania in 2014
94%
91% 89%
(Shown: Percentage of each user group)
FACT: Almost half of rural mobile money users in the
three East African countries do not receive remittances via
mobile money.
IMPLICATION: Promotional efforts solely focused on promoting mobile
money as a channel for urban-to-rural remittances result in the creation
of a strong stereotype about mobile money.
Small and medium-sized merchant
activities, including payroll and receiving
payments from customers, are
emerging as the next “big thing”
55% 54% 55%
44%
46%
41%
15% 13%
Basic activities
(CICO and airtime top-ups)
Receive P2P
transfers
Send P2P
transfers
C
M
Y
CM
FACT: Remote location and poverty also have a strong impact
on the use of digital financial services. Remoteness means poor
GSM network quality and poverty hamper the ability to obtain
the skills and equipment necessary for using DFS.
14% 13%
12%
7%
Business-related
activities
Kenya (n=1,350)
MYTH: Gender gap is the most critical issue in
financial inclusion and mobile money use.
10%
Bill pay
Tanzania (n=426)
8%
7%
6%
Savings
Receive wages
Uganda (n=421)
Mobile money users across demographic subgroups in Kenya
(Shown: Percentage of each user group)
Rural wealthy females use mobile money at a higher
rate than rural wealthy males or urban poor males –
very typical of East African countries
97%
89%
83%
78%
73%
67%
62%
MY
55%
CY
CMY
K
5%
3%
IMPLICATION: Investment and promotional efforts solely directed at
increasing financial inclusion among females might lead to emergence
of two new disadvantaged groups: urban poor males and rural males
(poor and non-poor).
Urban wealthy
males (n=293)
MYTH: Once they have a registered account, mobile
money users want to make transactions on their
own, in their own environment.
FACT: There is agent-dependence in the market, driven by
a number of financial landscape characteristics aside from
account ownership. These include low literacy levels, lack
of trust in mobile money, and high rates of crime and fraud.
IMPLICATION: Sustained efforts to help people become more
comfortable using mobile money services could encourage
independent use.
Urban wealthy
females (n=480)
Urban poor
males (n=95)
Urban poor
females (n=226)
Rural wealthy
males (n=342)
Rural wealthy
females (n=378)
Rural poor
males (n=491)
Rural poor
females (n=690)
Ugandan mobile money users’ preferred way
to use mobile money services
(Shown: Percentage of registered and unregistered users who chose each method)
More registered users prefer to use an agent rather than make transactions
independently through their accounts – potentially because of the prevalence of
CICO activities, confusion with English-language menus and a fear of fraud
64%
57%
40%
29%
4%
Use OTC via an agent
Use MM account of a family
member in this or another household
Registered
1%
1%
Other shared use
Unregistered MM users (n=280)
NA%
Transact via own account