The Advent of Mobile Payments in Developing Countries: A Case Study of MTN Ghana Mobile Money

Frank Owusu

Student thesis: Master thesis


The poor and primitive means of money transfers prevailing in the Ghanaian economy till the advent of mobile telephony companies and the subsequent introduction of mobile payment are indeed both odd and frightening. The status quo before then was the use of archaic mediums such as delivering by hand and via vehicles. It is of the need that an innovative model should be implemented to extend financial services to all especially to those in the hinterlands since this is a challenge in the country. The excitement around mobile payment has arisen in part because it is widely seen as an effective way to provide access to finance to millions of people around the globe.
The study examines and assesses the advent of mobile payment in the country by taking into reflection the value being created to users, the challenges hindering the successes of the innovation, the preference of mobile payment compared to other mode of transfers, and how stakeholders work together in the payment ecosystem. An interesting revelation of this study was the “flashback in the use of mobile pay” where users move back from mobile payment to the archaic ways of making money payments. It availed that respondents mainly engaged in the use of “transport”, “through someone”, “delivery services”, and “bank" in making various payments prior to the advent of mobile payment. Some users complained about the cost of making various transactions on MMS. The penultimate indicator of the challenges revealed in this study was the network instability. The theoretical and practical implications of business model, business strategy and payment ecosystem related to mobile payments were discussed. It was also revealed that users prefer to use MMS as compared to other mode of payments. The data was analysed using the Statistical Package for the Social Sciences (SPSS) to ascertain the relationship between constructs. It is of the recommendation that MTN Ghana should put in much efforts to make their network stable for various transactions as the successes of MMMS is greatly linked to the success of the network. However, the results were in support of some key elements of business model, business strategy, payment ecosystem and shows that there is an array of hope in this innovation, if challenges and other concerns are being dealt with a sense of urgency and seriousness.

EducationsMSocSc in Organisational Innovation and Entrepreneurship , (Graduate Programme) Final Thesis
Publication date2017
Number of pages119
SupervisorsJonas Hedman