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Socioeconomic dynamics in mobile money services in Egypt: an empirical analysis

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  • Mona Farid Badran

    (Cairo University)

Abstract

The recent growth of mobile money (MM) in Africa, has allowed millions of people who are otherwise disqualified from the formal financial system to perform financial transactions relatively cheaply, securely, and reliably. In Egypt, however, despite the fact that mobile penetration rate amounts to almost 100 %, MM services penetration rate is still quite low around 1 %, and more importantly with minimal impact on the Egyptian economy at large. Thus, this research paper examines the socioeconomic adoption factors of MM services in Egypt using a Nielsen syndicated survey of MM users. This survey was conducted in April 2015 on a sample of 953 mobile money users. The findings of the empirical study reveal that the profile of a mobile money user in Egypt is similar to his Kenyan counterpart; namely an affluent, university educated and male user. However, the theory of early adopters is not evident in Egypt’s case. Urbanization plays no role in the socioeconomic adoption factors controlled for in the estimated model. The empirical model also shows that, according to the survey, the perception of Islamic financial rules does not contradict with the adoption of MM services in Egypt. Finally policy recommendations are provided for the regulator and the telecom operators, drawing from other successful case studies in this domain.

Suggested Citation

  • Mona Farid Badran, 2017. "Socioeconomic dynamics in mobile money services in Egypt: an empirical analysis," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 7(2), pages 267-285, August.
  • Handle: RePEc:spr:eurasi:v:7:y:2017:i:2:d:10.1007_s40821-016-0057-1
    DOI: 10.1007/s40821-016-0057-1
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    References listed on IDEAS

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    1. Isaac Mbiti & David N. Weil, 2015. "Mobile Banking: The Impact of M-Pesa in Kenya," NBER Chapters, in: African Successes, Volume III: Modernization and Development, pages 247-293, National Bureau of Economic Research, Inc.
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    3. Simplice A, Asongu, 2012. "How has mobile banking stimulated financial development in Africa?," MPRA Paper 38576, University Library of Munich, Germany.
    4. James ALLEMAN & Paul RAPPOPORT, 2010. "Mobile Money: Implications for Emerging Markets," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(79), pages 15-28, 3rd quart.
    5. World Bank, 2012. "2012 Information and Communications for Development : Maximizing Mobile [Information et communications au service du développement : Exploiter au maximum la téléphonie mobile]," World Bank Publications - Books, The World Bank Group, number 11958.
    6. Mark D. J. Williams & Rebecca Mayer & Michael Minges, 2011. "Africa's ICT Infrastructure : Building on the Mobile Revolution," World Bank Publications - Books, The World Bank Group, number 2325.
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    Cited by:

    1. Kabengele, Christian & Hahn, Rüdiger, 2021. "Institutional and firm-level factors for mobile money adoption in emerging markets–A configurational analysis," Technological Forecasting and Social Change, Elsevier, vol. 171(C).
    2. Juan Carlos Urueña-Mejía & Luis H. Gutierrez & Paul Rodríguez-Lesmes, 2023. "Financial inclusion and business practices of microbusiness in Colombia," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 13(2), pages 465-494, June.

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    More about this item

    Keywords

    Mobile money services; Egypt; Socio-economic factors; Logistic regression;
    All these keywords.

    JEL classification:

    • E40 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - General
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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