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Differences between Fee Structure of Mobile Money Technologies and Traditional
Banking Systems, Social Psychological Determinants and Service Uptake: A Case
Study of Uganda
Bruno L. YAWE & Tinah NASSALI
College of Business and Management Sciences
Makerere University, Kampala, UGANDA
December 07th 2011
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Presentation Plan
• Research Procedures Completed to date
• Preliminary Findings
• Reflections on the Research Process [What has Worked, Successes, Pitfalls, Setbacks]
• New Questions that the Research to date has Posed
• Research Procedures still to be Conducted
• Next Steps 2
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Research Procedures Completed to date
• Some interviews with officials from Bank of Uganda and the Uganda Communications Commission (UCC);
• Questionnaires
• Participating in public dialogues like: The operator-consumer dialogue on quality of service by UCC
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Preliminary Findings
• (a) Fee Structure of the Various Mobile Money Providers in Uganda
• (b) Relate the Fees Structure of the various Mobile Money Providers to Service Uptake
• (c) Examine the Social and Psychological Determinants of Mobile Money Technology Use and Adoption in Uganda
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Fee Structure of the Various Mobile Money Providers in Uganda
UTL MSENTE SUBSCRIBER TARRIFS 2011
Transaction Fee (UGX)
Amount Sending by Registered Subscriber
Sending by Non Registered Subscriber
Withdrawals by Registered Subscriber
1-500 700 N/A N/A
500-5,001 700 700 300
5,001-30,000 700 1,500 700
30,001-60,000 700 1,900 900
60,001-125,000 700 3,500 1500
125,001-250,001 700 6,800 2900
250,001-500,000 700 9,000 4900
500,001-1,000,000 700 18,000 8900
1,000,001-2,000,000 700 35,000 17000
2,000,001-4,000,000 700 N/A N/A
4,000,001-10,000,000 700 N/A N/A
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Fee Structure of the Various Mobile Money Providers in Uganda…..
MTN-Uganda Mobile money Tariff Plan
• Daily limit: UG SHS 1,000,000 per transaction• Minimum Account Balance: 0 • Maximum Account Balance UGX 1,000,000• Depositing into Mobile money Account: 0
Transaction Tiers-UGX
Sending to MTN Registered User
Sending to Non-registered (MTN of
Other networks)
Withdrawals by registered MTN
User
Withdrawals by non-registered user (MTN or other
networks)5,000 - 30,000 800 1,600 700 0
30,001 - 60,000 800 2,000 1,000 0
60,001 - 125,000 800 3,700 1,600 0
125,001 - 250,000 800 7,200 3,000 0
250,001 - 500,000 800 10,000 5,000 0
500,001 - 1,000,000 800 19,000 9,000 0
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Fee Structure of the Various Mobile Money Providers in Uganda…
Airtel-Uganda Mobile money Tariff Plan (UGX)
• Maximum Transfer amount (per transaction): 1000000• Maximum Transactions Buy Zap/Cash-In per day: 50• Maximum Transactions Sell Zap/Cash-Out per day: 50• * Rates determined by supply and demand • All values quoted above are in Ushs and are inclusive of VAT
Amount Buy Zap (Cash-in) Sell Zap (Cash-Out)
1-5,000 250 250
5,001 - 30,000 200 1000
30,001 - 60,000 300 1200
60,001 - 125,000 400 1600
125,001 - 250,000 500 2500
250,001 - 500,000 1000 3000
500,001 - 1,000,000 2000 5000
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Uganda; Mobile Money Services by Provider
MTN-Uganda Uganda Telecom Limited
Airtel-Uganda
Sending and Buying airtime (no charge)
Sending and Buying airtime (no charge)
Sending and Buying airtime (no charge)
(Cash-In & Cash-out) Money transfers
(Cash-In & Cash-out) Money transfers
(Cash-In & Cash-out) Money transfers
Utility bills: DSTV Water bills (NWSC)Star Times
Utility bills: DSTV Water bills (NWSC)Star Times
School fees payments School fees payments
Mobile Banking with Post Bank and Pride Microfinance
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Correlation Matrix for Mobile Money Facilitating Conditions
Correlations
1 .231** .196* .325** .204*
. .005 .015 .000 .012
156 148 152 153 152
.231** 1 .332** .136 .472**
.005 . .000 .100 .000
148 148 146 148 145
.196* .332** 1 .350** .461**
.015 .000 . .000 .000
152 146 152 151 149
.325** .136 .350** 1 .388**
.000 .100 .000 . .000
153 148 151 153 150
.204* .472** .461** .388** 1
.012 .000 .000 .000 .
152 145 149 150 152
Pearson Correlation
Sig. (2-tailed)
N
Pearson Correlation
Sig. (2-tailed)
N
Pearson Correlation
Sig. (2-tailed)
N
Pearson Correlation
Sig. (2-tailed)
N
Pearson Correlation
Sig. (2-tailed)
N
MM Network Coverage
Support from MM SvceProviders
Clear Instructions onMM usage
MM service availability
Help Desk availablefor MM
MM NetworkCoverage
Support fromMM SvceProviders
ClearInstructions
on MM usageMM serviceavailability
Help Deskavailablefor MM
Correlation is significant at the 0.01 level (2-tailed).**.
Correlation is significant at the 0.05 level (2-tailed).*.
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Correlation Matrix for Perceived Ease of Use
Correlations
1 .772** .377** .379** .499**
. .000 .000 .000 .000
150 149 146 142 144
.772** 1 .380** .463** .604**
.000 . .000 .000 .000
149 150 146 142 144
.377** .380** 1 .484** .415**
.000 .000 . .000 .000
146 146 148 141 143
.379** .463** .484** 1 .641**
.000 .000 .000 . .000
142 142 141 143 140
.499** .604** .415** .641** 1
.000 .000 .000 .000 .
144 144 143 140 147
Pearson Correlation
Sig. (2-tailed)
N
Pearson Correlation
Sig. (2-tailed)
N
Pearson Correlation
Sig. (2-tailed)
N
Pearson Correlation
Sig. (2-tailed)
N
Pearson Correlation
Sig. (2-tailed)
N
MM svces are easy tolearn to use
MM svces are easy tounderstand
information easy to getfrom MM Svce providers
Skil l Acquisition easywith MM
Using MM svces is easy
MM svcesare easy tolearn to use
MM svcesare easy tounderstand
informationeasy to get
from MM Svceproviders
Skil lAcquisition
easy with MMUsing MM
svces is easy
Correlation is significant at the 0.01 level (2-tailed).**.
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Facilitating Conditions and Perceived Ease of Use
• The quality of MM services is dependent on amongst others the quality of mobile services and the agent-specific attributes [e.g. liquidity of agents, MM service-mix provided, security]. We delve into this on slide 14.
• Further research should investigate the rationale for consumers subscribing to all MM providers; risk exposure associated with this;
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Operator-Consumer Dialogue on Quality of Service
Accessibility to M.M services Network coverage (no. of branches) Liquidity availability for clients at all times Possibility of inter-network transactions at reduced
cost Security of clients’ money ensured by providers Perceived Ease of Use of M.M services (flexibility &
convenience) Perceived Usefulness of M.M services (reduced time
costs)
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Reflections on the Research ProcessWhat has Worked/Successes• Secondary data sources (from Bank of Uganda);• Questionnaire; • Focused-Group Discussions (operator-consumer dialogue);
Pitfalls• Tariff plans not easily comparable across providers;• Service uptake information from Bank of Uganda is too
aggregated and providers cannot easily release it;
Next Steps• Complete remaining research procedures;• Prepare a manuscript for submission to a journal 15
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New Questions that the Research to date has Posed
• Who is the regulator of mobile money services? Providers; The Central Bank, Uganda Communications Commission?
• Who set the tariff plans being implemented by agents? • If a client sends money and it does not get received
where does one seek redress? BOU, UCC, National Information Technology Authority – Uganda (NITA-U) or providers?
• The tariff plans differ depending upon the provider. What are the implications of this?
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