THE SIGNIFICANCE AND ROLE OF SMALL AND MEDIUM ENTERPRISE MOBILE MONEY BUSINESSES IN ZAMBIA – A BRIEF REVIEW AND PERSPECTIVE

Abstract

Background and Objectives: Cell phones in Africa have improved economic performance and allowed poor, unbanked communities to access financial services at a minimal cost. The main objective of the review is to shed more light on the current trends in the mobile money business by briefly appraising the various studies on the small-scale mobile money industry, with special emphasis on Zambia.

Study Design/Material and Methods: The review examined 52 peer-reviewed and purposefully selected journal articles. Of these, 30 papers comprising five different areas on mobile money were evaluated.

Results: It was established that mobile money is not only convenient and accessible to most people, but it has also led to economic inclusion for disadvantaged communities. Instead of competition, there should be complementarity between banks and mobile money platforms through the integration of the two payment systems. Integration of the two systems, however, would come with associated risks.

Practical Implications: Replicating successes in the mobile money subsector will not only broaden the tax base but also improve and/or streamline strategies and policies relating to the small and medium scale (SMEs) industry to benefit the country.

Conclusion and Summary: Mobile money has provided an invaluable, easy-to-use, and robust solution to financial inclusion for disadvantaged communities in emerging economies, especially in Africa.