IDEAS home Printed from https://ideas.repec.org/a/aif/journl/v15y2022i1p87-93.html
   My bibliography  Save this article

China’s mobile payment: lessons for African countries

Author

Listed:
  • Fodouop Kouam Arthur William

    (School of Management, Hebei University, Baoding city, Hebei Province, China.)

Abstract

In Kenya in 2007, Safaricom launched its M-PESA solution for peer-to-peer money transfer, known as the start of mobile money. Nowadays, Africa is the global leader in mobile money. However, many see China as the leader in terms of mobile payment. In many African countries, mobile money transactions such as peer-to-peer transfers and personal account withdrawals are costly. While in China, the cost of these transactions is meager; some are even free of charge. This study aims to assess the lessons African countries can learn from China’s mobile payment. The empirical research question is to determine what African countries can learn from China’s mobile payment, especially peer-to-peer money transfers and personal account withdrawals. We collected data from 19 African countries from mobile network operators operating in these countries. We analyzed data using descriptive statistics. Findings show that the costs of peer-to-peer transfer and withdrawal from a personal account are expensive in African countries compared to China. African governments should promote the adoption of QR code payment and provide technology infrastructure and good regulation.

Suggested Citation

  • Fodouop Kouam Arthur William, 2022. "China’s mobile payment: lessons for African countries," International Journal of Science and Business, IJSAB International, vol. 15(1), pages 87-93.
    • Handle: RePEc:aif:journl:v:15:y:2022:i:1:p:87-93
    as

    Download full text from publisher

    File URL: https://ijsab.com/wp-content/uploads/968.pdf
    Download Restriction: no
    File URL: https://ijsab.com/volume-15-issue-1/5051
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Leora Klapper, 2023. "How digital payments can benefit entrepreneurs," IZA World of Labor, Institute of Labor Economics (IZA), pages 396-396, April.
    2. Michael Chui, 2021. "Money, technology and banking: what lessons can China teach the rest of the world?," BIS Working Papers 947, Bank for International Settlements.
    3. Yiping Huang & Xue Wang & Xun Wang, 2020. "Mobile Payment in China: Practice and Its Effects," Asian Economic Papers, MIT Press, vol. 19(3), pages 1-18, Fall.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Luc Jacolin & Joseph Keneck Massil & Alphonse Noah, 2021. "Informal sector and mobile financial services in emerging and developing countries: Does financial innovation matter?," The World Economy, Wiley Blackwell, vol. 44(9), pages 2703-2737, September.
    2. Serge Ky & Clovis Rugemintwari & Alain Sauviat, 2019. "Friends or foes? Mobile money interaction with formal and informal finance," Working Papers hal-02000982, HAL.
    3. Orkun Saka & Barry Eichengreen & Cevat Giray Aksoy, 2022. "Epidemic Exposure, Financial Technology, and the Digital Divide," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 54(7), pages 1913-1940, October.
    4. Huang, Yiping & Li, Xiang & Qiu, Han & Yu, Changhua, 2023. "BigTech credit and monetary policy transmission: Micro-level evidence from China," BOFIT Discussion Papers 2/2023, Bank of Finland Institute for Emerging Economies (BOFIT).
    5. Luo, Yu & Peng, Yuchao & Zeng, Lianyun, 2021. "Digital financial capability and entrepreneurial performance," International Review of Economics & Finance, Elsevier, vol. 76(C), pages 55-74.
    6. Weisong Qiu & Tieqi Wu & Peng Xue, 2022. "Can Mobile Payment Increase Household Income and Mitigate the Lower Income Condition Caused by Health Risks? Evidence from Rural China," IJERPH, MDPI, vol. 19(18), pages 1-15, September.
    7. repec:zbw:bofitp:2021_013 is not listed on IDEAS
    8. Jianmei Zhao & Lele Zhao, 2022. "Mobile payment adoption and the decline in China’s household savings rate," Empirical Economics, Springer, vol. 63(5), pages 2513-2537, November.
    9. Wearing, Stephen & Beirman, David & Grabowski, Simone, 2020. "Engaging volunteer tourism in post-disaster recovery in Nepal," Annals of Tourism Research, Elsevier, vol. 80(C).
    10. Stefan Vachkov, 2022. "Customer Centricity and Product Innovation in Banking," Izvestia Journal of the Union of Scientists - Varna. Economic Sciences Series, Union of Scientists - Varna, Economic Sciences Section, vol. 11(2), pages 3-12, August.
    11. Musa Abdullahi Sakanko & Joseph David & Nurudeen Abu & Awadh Ahmed Mohammed Gamal, 2024. "Financial inclusion and underground economy nexus in West Africa: evidence from dynamic heterogeneous panel techniques," Economic Change and Restructuring, Springer, vol. 57(1), pages 1-20, February.
    12. Zhu, Jialiang & Liu, Yun & Fang, Ying, 2023. "A blessing in disguise—The effect of China’s Covid-19 health code system on older people’s mobile payment usage," Finance Research Letters, Elsevier, vol. 53(C).
    13. Alraqeb Zeynep & Knaack Peter & Macaire Camille, 2022. "Does FinTech Promote Entrepreneurship? Evidence from China [L’adoption des Fintech favorise-t-elle l’entreprenariat ? Le cas de la Chine]," Working papers 895, Banque de France.
    14. Zhao, Chunkai & Wang, Yuhang & Ge, Zhenyu, 2023. "Is digital finance environmentally friendly in China? Evidence from shared-bike trips," Transport Policy, Elsevier, vol. 138(C), pages 129-143.
    15. Rachel A. Bahn & Abed Al Kareem Yehya & Rami Zurayk, 2021. "Digitalization for Sustainable Agri-Food Systems: Potential, Status, and Risks for the MENA Region," Sustainability, MDPI, vol. 13(6), pages 1-24, March.
    16. Orkun Saka & Barry Eichengreen & Cevat Giray Aksoy, 2021. "Epidemic Exposure, Fintech Adoption, and the Digital Divide," NBER Working Papers 29006, National Bureau of Economic Research, Inc.
    17. Guo, Xiaoxin & Zhong, Shihu, 2023. "Unintended consequences: How does digital inclusive finance affect migrants' urban settlement intentions?," International Review of Financial Analysis, Elsevier, vol. 89(C).
    18. Sergio Gorjón, 2021. "Bigtechs and financial services: some challenges, benefits and regulatory responses," Economic Bulletin, Banco de España, issue 4/2021.
    19. Zhang, Qi & Ariffin, Shaizatulaqma Kamalul & Richardson, Christopher & Wang, Yuling, 2023. "Influencing factors of customer loyalty in mobile payment: A consumption value perspective and the role of alternative attractiveness," Journal of Retailing and Consumer Services, Elsevier, vol. 73(C).
    20. Hongyun Zheng & Wanglin Ma, 2022. "Scan the QR Code of Happiness: Can Mobile Payment Adoption Make People Happier?," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 17(4), pages 2299-2310, August.
    21. Mohamed, Abdinur Ali, 2023. "The influence of the mobile money payment on the performance of small and medium enterprises in Somalia," Technological Forecasting and Social Change, Elsevier, vol. 196(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aif:journl:v:15:y:2022:i:1:p:87-93. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Farjana Rahman (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.