Growth Challenges Of Mobile Money Payment Services In Ethiopia

Mobile money services are mainly used in Ethiopia for non-payment related areas such as airtime top up, cash in and cash out services. The main purpose of this study is to examine the growth challenges of mobile money-based payment services by focusing on the managerial aspects of mobile money services. The research is qualitative research and has employed a case study method. Reports from the national bank of Ethiopia, banks, and interviews were used as a source of data. Four mobile money services operated by four different banks were analyzed in this research. The result of the research shows that banks do not have a comprehensive strategy for mobile money growth, the top-level leadership attention and awareness level are very low and mobile money services are managed mixed with other services far below the sight of the top management. None of the mobile money services are profitable neither do they have an expected time period for the services to become profitable. The lack of a robust agent network and clear business model is also another finding of the study. Payment services are best understood using a platform business. An appropriate business model based on platform businesses should be designed in order to overcome the growth challenges.

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