93% of Ghanaians aware of mobile money

A study by global payments technology company Visa has found that 93 percent of Ghanaians are aware of mobile money and appreciate its benefits -- more than in five other emerging markets surveyed, where the average awareness was 56 percent.

The Visa mobile money study analysed the financial services needs and expectations of mobile money among nearly 2,500 consumers, mobile money agents, and merchants in Bangladesh, Ghana, India, Indonesia, Nigeria and Pakistan.

Eighty-eight percent of Ghanaians cited “safety of not having to carry around a lot of cash” as the primary benefit of mobile money, with speed of sending money (73 percent) the second-most important benefit.
Ninety percent of the respondents from Ghana said their main intended use of mobile money is to send money quickly to family members, while 69 percent said their second motivation is to save money for the family -- compared to an average of 52 percent across the countries surveyed.

 

Mobile money services -- the ability to make payments or send funds simply by accessing an account on a mobile phone -- were launched in Ghana in 2009 by MTN, which was the most recognised service provider among the study respondents with 90 percent aware of the brand.

The services are now available on three networks after Airtel and Tigo launched Airtel Money and Tigo Cash respectively.

“Ghana is one of the leading mobile money markets in the world. Industry players have worked hard to raise the awareness of mobile money services in order to drive financial inclusion among Ghana’s large unbanked population. This achievement underscores the remarkable progress that has been made,” said Aletha Ling, COO at Fundamo, the Visa-owned mobile money platform.

“Industry collaboration must continue to ensure Ghana remains a shining light of mobile money success.”

Visa said the survey results show that consumers’ needs for financial services are far more sophisticated than previously believed, and go well beyond the established transaction-set offered by mobile money services today.

While many survey participants did not have a formal financial account, several examples of complex and sophisticated money management systems emerged across the six markets. The majority of respondents shared how they set money aside for education, healthcare, emergencies and life events. The majority of consumers surveyed intend to use mobile money to send money to family members (81 percent), pay utility bills (56 percent) and save money for their family (52 percent).

The study also uncovered key barriers to adoption -- with the number-one barrier to adoption in Ghana being the fear of sending money to the wrong number -- and identified best practices for mobile money providers.

Visa said the study’s results suggest that fine-tuning how a mobile money operator markets its service can have an impact on consumers' desire to adopt such a service. For example, the study found that "safe-keeping" rather than "saving" money is a primary driver for why consumers in developing countries are interested in using mobile money services. This suggests that mobile money providers should invest in additional research to better understand their customers' needs, tailor information, education and marketing efforts to the needs of consumers and mobile money agents, and adopt local terminology.

“One key learning from this study could be summarised as ‘it's not what you say, it's how you say it”, said Gavin Krugel, Head of Emerging Market Customer Strategy and Market Activation, Visa Inc.

“This single insight has massive implications for the vernacular used in mobile money menu structures, the education of mobile money agents and consumers, and creation of mass market advertising.”

The Visa Mobile Money study was conducted between February-August 2012. Visa surveyed nearly 2,500 individuals in six countries and 15 cities through a combination of field surveys, in-depth in-person interviews, and focus groups with men and women aged between18 to 44.

Respondents had to own a mobile phone. The study included both in-depth qualitative and quantitative research on money management needs, habits and practices as well as factors that need to be addressed for the successful adoption of mobile money services. Particular focus was placed on understanding the needs of unbanked consumers as well as the needs of merchants and agents who will be offering mobile money in both urban and rural areas within these markets.

By Leslie Dwight MENSAH

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