1 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 07 th

2 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

3 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 3

4 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 4

5 Fee Structure of the Various Mobile Money Providers in Uganda UTL MSENTE SUBSCRIBER TARRIFS 2011 Transaction Fee (UGX) AmountSending by Registered Subscriber Sending by Non Registered Subscriber Withdrawals by Registered Subscriber N/A 500-5, ,001-30, , ,001-60, , , , , , , , , , , ,001-1,000, , ,000,001-2,000, , ,000,001-4,000,000700N/A 4,000,001-10,000,000700N/A

6 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, , , , , ,0001, , , ,7001, , , ,2003, , , ,0005, , ,000, ,0009,0000

7 Fee Structure of the Various Mobile Money Providers in Uganda… Airtel-Uganda Mobile money Tariff Plan (UGX) Maximum Transfer amount (per transaction): 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 AmountBuy Zap (Cash-in)Sell Zap (Cash-Out) 1-5, , , , , , , , , , , , ,000,

8 (a) Fee Structure of the various Mobile Money Providers & Service Uptake

9 (b) Fee Structure of the various Mobile Money Providers & Service Uptake

10 Uganda; Mobile Money Services by Provider MTN-UgandaUganda Telecom Limited Airtel-Uganda Sending and Buying airtime (no charge) (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 Mobile Banking with Post Bank and Pride Microfinance

11 Correlation Matrix for Mobile Money Facilitating Conditions

12 Correlation Matrix for Perceived Ease of Use

13 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;

14 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)

15 Reflections on the Research Process What 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

16 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? 16

17 Mobile Money in Rural areas Thank You! 17