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 07th 2011
1
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
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
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
Fee Structure of the Various Mobile Money
Providers in Uganda
UTL MSENTE SUBSCRIBER TARRIFS 2011
Transaction Fee (UGX)
Amount
Sending by
Registered
Subscriber
Sending by Non Withdrawals by Registered
Registered
Subscriber
Subscriber
N/A
N/A
1-500
700
500-5,001
700
700
300
5,001-30,000
700
1,500
700
30,001-60,000
700
1,900
900
60,001-125,000
700
3,500
1500
125,001-250,001
700
6,800
2900
250,001-500,000
700
9,000
4900
500,001-1,000,000
700
18,000
8900
1,000,001-2,000,000
700
35,000
17000
2,000,001-4,000,000
700
N/A
N/A
4,000,001-10,000,000
700
N/A
N/A
5
Fee Structure of the Various Mobile Money Providers
in Uganda…..
MTN-Uganda Mobile money Tariff Plan
Transaction TiersUGX
Sending to MTN
Registered User
Sending to Nonregistered (MTN of
Other networks)
Withdrawals by
registered MTN
User
5,000 - 30,000
800
1,600
700
Withdrawals by nonregistered user
(MTN or other
networks)
0
30,001 - 60,000
800
2,000
1,000
0
60,001 - 125,000
800
3,700
1,600
0
125,001 - 250,000
800
7,200
3,000
0
250,001 - 500,000
800
10,000
5,000
0
500,001 - 1,000,000
800
19,000
9,000
0
•
•
•
•
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
6
Fee Structure of the Various Mobile Money
Providers in Uganda…
Airtel-Uganda Mobile money Tariff Plan (UGX)
Amount
Buy Zap (Cash-in)
Sell Zap (Cash-Out)
1-5,000
250
250
5,001 - 30,000
200
1000
30,001 - 60,000
300
1200
60,001 - 125,000
400
1600
125,001 - 250,000
500
2500
250,001 - 500,000
1000
3000
500,001 - 1,000,000
2000
5000
•
•
•
•
•
Maximum Transfer amount (per transaction): 1000000
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
7
(a) Fee Structure of the various Mobile Money
Providers & Service Uptake
8
(b) Fee Structure of the various Mobile Money
Providers & Service Uptake
9
Uganda; Mobile Money Services by
Provider
MTN-Uganda
Sending and Buying
airtime (no charge)
(Cash-In & Cash-out)
Money transfers
Utility bills:
DSTV
Water bills (NWSC)
Star Times
School fees payments
Uganda Telecom
Limited
Sending and Buying
airtime (no charge)
(Cash-In & Cash-out)
Money transfers
Utility bills:
DSTV
Water bills (NWSC)
Star Times
School fees payments
Airtel-Uganda
Sending and Buying
airtime (no charge)
(Cash-In & Cash-out)
Money transfers
Mobile Banking with Post
Bank and Pride
Microfinance
10
Correlation Matrix for Mobile Money
Facilitating Conditions
Correlations
MM Network Coverage
Support from MM Svce
Providers
Clear Instructions on
MM usage
MM service availability
Help Desk available
for M M
Pearson Correlati on
Sig. (2-tailed)
N
Pearson Correlati on
Sig. (2-tailed)
N
Pearson Correlati on
Sig. (2-tailed)
N
MM Network
Coverage
1
.
156
.231**
.005
148
.196*
.015
Pearson Correlati on
Sig. (2-tailed)
N
Pearson Correlati on
Sig. (2-tailed)
N
152
.325**
.000
153
.204*
.012
152
Support from
Clear
Help Desk
MM Svce
Inst ructions
MM service
avai lable
Providers
on M M usage
avai lability
for M M
.231**
.196*
.325**
.204*
.005
.015
.000
.012
148
152
153
152
1
.332**
.136
.472**
.
.000
.100
.000
148
146
148
145
.332**
1
.350**
.461**
.000
.
.000
.000
146
.136
.100
148
.472**
.000
145
152
.350**
.000
151
.461**
.000
149
151
1
.
153
.388**
.000
150
149
.388**
.000
150
1
.
152
**. Correlation is significant at the 0.01 level (2-tailed).
*. Correlation is significant at the 0.05 level (2-tailed).
11
Correlation Matrix for Perceived
Ease of Use
Correlations
MM svces are eas y to
learn to us e
MM svces are eas y to
understand
information easy t o get
from MM S vce providers
Skill Acquisition easy
with MM
Using MM svces is easy
Pearson Correlation
Sig. (2-tailed)
N
Pearson Correlation
Sig. (2-tailed)
N
Pearson Correlation
Sig. (2-tailed)
N
information
MM svces
MM svces
eas y to get
Skill
are easy to
are easy to
from MM S vce
Acquisition
Using MM
learn to us e
understand
providers
eas y with MM svces is easy
1
.772**
.377**
.379**
.499**
.
.000
.000
.000
.000
150
149
146
142
144
.772**
1
.380**
.463**
.604**
.000
.
.000
.000
.000
149
150
146
142
144
.377**
.380**
1
.484**
.415**
.000
.000
.
.000
.000
Pearson Correlation
Sig. (2-tailed)
N
Pearson Correlation
Sig. (2-tailed)
N
146
146
148
141
143
.379**
.000
142
.499**
.000
144
.463**
.000
142
.604**
.000
144
.484**
.000
141
.415**
.000
143
1
.
143
.641**
.000
140
.641**
.000
140
1
.
147
**. Correlation is significant at the 0.01 level (2-tailed).
12
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;
13
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)
14
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
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
Mobile Money in Rural areas
Thank You!
17