Mobile Money, Perception about Cash, and Financial Inclusion: Learning from Uganda’s Micro-Level Data

By Felix F. Simione, Tara S Muehlschlegel

November 17, 2023

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Format: Chicago

Felix F. Simione, and Tara S Muehlschlegel. Mobile Money, Perception about Cash, and Financial Inclusion: Learning from Uganda’s Micro-Level Data, (USA: International Monetary Fund, 2023) accessed December 22, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

Will mobile money render cash less dominant over time in Africa? Can it promote financial inclusion? We shed light on these questions by exploring individual-level and nationally representative survey data for Uganda, a country in a region that pioneered mobile money in the world. We use the Propensity Score Matching method to robustly compare mobile money users and non-users across a range of indicators that capture individuals’ perceptions about cash, and the extent to which they remit, save, and borrow money. We present the first evidence that mobile money users, compared to non-users, are more likely to perceive cash as risky and less likely to prefer carrying large amounts of cash. We also confirm that mobile money users are more likely to receive and send remittances, save, and borrow. They also save and borrow larger amounts.

Subject: Balance of payments, Consumer credit, Digital financial services, Financial inclusion, Financial markets, Mobile banking, Money, Remittances, Technology

Keywords: Africa, Consumer credit, Deposit balance, Developing Country, Digital Divide, Digital financial services, Financial inclusion, Innovation, Mobile banking, Money usage, Propensity Score Matching method, Remittances, Selected indicator, Sub-Saharan Africa, Usage treatment

Publication Details

Pages:

32
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2023/238
Stock No:

WPIEA2023238
ISBN:

9798400260148
ISSN:

1018-5941

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