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The (non-)emergence of mobile money systems in Sub-Saharan Africa: A comparative multilevel perspective of Kenya and Nigeria

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  • Lepoutre, Jan
  • Oguntoye, Augustina

Abstract

Mobile money systems are radically transforming the lives of a large fraction of the Sub-Saharan population. The emblematic success story of M-Pesa of Kenyan telecommunications operator Safaricom has received wide acclaim for being both the first company that launched mobile money and its mass adoption in just a few years. Despite efforts to replicate this success in other countries in Sub-Saharan Africa, many are struggling to get mobile money off the ground. This paper aims to contribute to a better understanding of the mechanisms that explain these differences by using a comparative case study analysis of Kenya and Nigeria that are comparable in many respects but are extreme opposites in their adoption of mobile money. Theoretically drawing on a combination of a multilevel perspective of sociotechnical transformation (MLP) and innovation ecosystems, we identify the idiosyncratic elements that play a role in the development of a critical mass of user and agent networks necessary for the survival of mobile money systems. We argue that while network externalities have contributed to a mass adoption of mobile money in Kenya, the different institutional and industrial conditions in Nigeria suggest that network externalities are taking much more time to be generated there and that achieving similar adoption rates as in Kenya might therefore just be a matter of time.

Suggested Citation

  • Lepoutre, Jan & Oguntoye, Augustina, 2018. "The (non-)emergence of mobile money systems in Sub-Saharan Africa: A comparative multilevel perspective of Kenya and Nigeria," Technological Forecasting and Social Change, Elsevier, vol. 131(C), pages 262-275.
    • Handle: RePEc:eee:tefoso:v:131:y:2018:i:c:p:262-275
    DOI: 10.1016/j.techfore.2017.11.010
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    Cited by:

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    2. Shaikh, Aijaz A. & Glavee-Geo, Richard & Karjaluoto, Heikki & Hinson, Robert Ebo, 2023. "Mobile money as a driver of digital financial inclusion," Technological Forecasting and Social Change, Elsevier, vol. 186(PB).
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    5. Johnen, Constantin & Parlasca, Martin & Mußhoff, Oliver, 2023. "Mobile money adoption in Kenya: The role of mobile money agents," Technological Forecasting and Social Change, Elsevier, vol. 191(C).
    6. Wu, Zhanglan & Shao, Qinglong & Su, Yantao & Zhang, Dan, 2021. "A socio-technical transition path for new energy vehicles in China: A multi-level perspective," Technological Forecasting and Social Change, Elsevier, vol. 172(C).
    7. Cobben, Dieudonnee & Ooms, Ward & Roijakkers, Nadine & Radziwon, Agnieszka, 2022. "Ecosystem types: A systematic review on boundaries and goals," Journal of Business Research, Elsevier, vol. 142(C), pages 138-164.
    8. Ball, Kirstie & Canhoto, Ana & Daniel, Elizabeth & Dibb, Sally & Meadows, Maureen & Spiller, Keith, 2020. "Organizational tensions arising from mandatory data exchange between the private and public sector: The case of financial services," Technological Forecasting and Social Change, Elsevier, vol. 155(C).
    9. Mogaji, Emmanuel & Nguyen, Nguyen Phong, 2022. "The dark side of mobile money: Perspectives from an emerging economy," Technological Forecasting and Social Change, Elsevier, vol. 185(C).
    10. Joel Kiplagat Tuwey & Vincent Ngeno, 2019. "Does CEO Traits Influence Innovation? Evidence from the Kenya Banking Sector," Journal of Accounting, Business and Finance Research, Scientific Publishing Institute, vol. 7(2), pages 98-106.
    11. Koomson, Isaac & Bukari, Chei & Villano, Renato A, 2021. "Mobile money adoption and response to idiosyncratic shocks: Empirics from five selected countries in sub-Saharan Africa," Technological Forecasting and Social Change, Elsevier, vol. 167(C).
    12. Dzandu, Michael D. & Hanu, Charles & Amegbe, Hayford, 2022. "Gamification of mobile money payment for generating customer value in emerging economies: The social impact theory perspective," Technological Forecasting and Social Change, Elsevier, vol. 185(C).
    13. Alfonso Siano & Lukman Raimi & Maria Palazzo & Mirela Clementina Panait, 2020. "Mobile Banking: An Innovative Solution for Increasing Financial Inclusion in Sub-Saharan African Countries: Evidence from Nigeria," Sustainability, MDPI, vol. 12(23), pages 1-24, December.
    14. Serge Ky & Clovis Rugemintwari & Alain Sauviat, 2019. "Friends or foes? Mobile money interaction with formal and informal finance," Working Papers hal-02000982, HAL.
    15. Melia, Elvis, 2019. "The impact of information and communication technologies on jobs in Africa: a literature review," IDOS Discussion Papers 3/2019, German Institute of Development and Sustainability (IDOS).
    16. Dedehayir, Ozgur & Mäkinen, Saku J. & Ortt, J. Roland, 2022. "Innovation ecosystems as structures: Actor roles, timing of their entrance, and interactions," Technological Forecasting and Social Change, Elsevier, vol. 183(C).
    17. Jenny Aker & David A Carroll, 2022. "The State of Digital Financial Services in Francophone West Africa," Working Papers hal-03642499, HAL.
    18. Tyce, Matthew, 2020. "Beyond the neoliberal-statist divide on the drivers of innovation: A political settlements reading of Kenya’s M-Pesa success story," World Development, Elsevier, vol. 125(C).

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