An analysis of the challenges of M-Pesa as instrument for financial inclusion in rural Kenya

• Main Authors: Conteh, Seedy, Muhammad Helmi, Muhammad Irfan Syahmi, Albakri, Nimer Said, Mohammad Hamid, Attai, Redzuan, Nur Harena
• 格式: Conference or Workshop Item
• 语言: English; English
• 出版: 2020
• 主题: HG3368 Islamic Banking and Finance
• 在线阅读: http://irep.iium.edu.my/83595/1/83595_An%20analysis%20of%20the%20challenges%20of%20M-Pesa.pdf; http://irep.iium.edu.my/83595/2/83595_An%20analysis%20of%20the%20challenges%20of%20M-Pesa.programbook.pdf; http://irep.iium.edu.my/83595/; https://www.iium.edu.my/institute/iiibf/online-conference-isfpcps-september-2020

With a recent a global focus on financial inclusion, mobile money services have become a popular tool to deliver affordable and appropriate financial services to the poor. Many developing countries especially in the Sub-Saharan Africa are using mobile money services to include the lower of the pyramid who have been excluded from the mainstream financial system. Kenya is the global leader in money services with over 95 per cent of the adult population using mobile money. However, the mobile money services available are divided and highly skewed against the rural poor population. This paper was therefore meant to evaluate the challenges that impede the adoption of Kenya’s leading mobile money provider (M-PESA) in the rural communities. Using a library-based and discussion-oriented methodology, the research found that the low level of adoption in the rural communities has been attributed in part to lack of trust, sensitization, training, experience, and fear of erratic internet connectivity services. Other impediments to M-PESA adoption are fraudulent activities, appropriate documents, network interruptions, limited awareness of other services, inefficient system delivery, insufficient number of agents, and low liquidity.