Framework for Mobile Money Implementation in Nigeria

Abstract

A sizeable number of people in developing nations, particularly Africa countries are rural dwellers who seldom have access to banking services despite their heavy reliance on remittances from economic migrants for social protection and poverty alleviation.There is therefore a dire need for the development of an effective mechanism for funds remittance especially for the rural dwellers. The development of mobile money (m-Money) will facilitate access to finance through the mobile platform, which has the largest rate of adoption all over the world (two-thirds of the world population has access) among other information and communication technology (ICT) facilities. This paper proposes a framework for m-Money implementation in Nigeria as a poverty alleviation tool for sending money from cities and towns to the rural dwellers. The objective is to design a simple, cheap and secure way of sending money better than the existing transfers. The developed framework is premised on the public and private partnership (PPP) initiatives that combine both account-based and electronic currency systems. It employs a 2-factor authentication using the phone and the national ID card, which doubles as an identity card and a payment card. The model will help jumpstart the implementation of bank-to-ATM, ATM-to-bank and mobile-to-ATM funds transfer in Nigeria among others as well as increase accessibility to funds.

Enablers and Barriers for Mobile Commerce and Banking Services Among the Elderly in Developing Countries: A Systematic Review

“…Primary research on mobile banking was conducted in the early 2000s [25]. The adoption of mobile banking and related services in developing economies has been studied [19] over the past years in countries such as: South Africa (MTN money, Wizzit), Kenya (mPESA), India (Eko) and in continents such as Asia (SmartMoney and G-Cash) [26][27][28][29][30]. However, studies about the elderly behaviour on mobile banking and commerce are rare [2,31], a few studies have examined ease of use and extrinsic and intrinsic motivations for the elderly's usage of mobile applications [32].…”

World Health Organization's Innovative Direct Disbursement Mechanism for Payment of Grassroots Immunization Personnel and Operations in Nigeria: 2004–2015

“…The Central Bank of Nigeria demonstrated keen interest because it saw such projects as an opportunity to drive development and modernization of the payment system, in line with Nigeria's vision of being among the top 20 economies in the world by 2020 [ 15 ]. Mobile money is a technology-assisted financial service delivered to the beneficiaries via mobile phone device [ 16 ]. A study on the adoption of mobile money in Nigeria revealed that culture is the most important factor influencing the adoption behavior of users of mobile banking in Nigeria [ 17 ].…”

Global Challenges of Financial Inclusion

“…Services encompass online transactions, mobile and prompt payments, electronic payment of bills, automatic clearance of cheques, ATMs (Automated Teller Machines) etc. Of these, researchers found that mobile payment was effective in alleviating poverty in rural areas of Nigeria (Ayo et al, 2011). So, what are the reasons for this development in Nigeria?…”