Assessment of mobile payments: Challenges from user perspective in Kigali

Abstract

Due to its wide range of use and increasing market penetration of mobile phones, mobile payments have become a popular payment method in Rwanda as well the number of registered mobile money accounts has increased significantly. Yet we have a little understanding of user challenges associated with the payment mode. This study aims at identifying the most significant challenges affecting the use of mobile money in Kigali in order to recommend a way forward to be used to address the associated challenges. In this research we focused on MTN mobile money payments as one of most commonly used mobile payment mode in Rwanda. The target population was mobile money users in Kigali where the service is mostly used and UR students in Kigali campuses were our case study. The quantitative research methodology was used where cluster sampling technique and survey questionnaire were used as data Collection techniques with a sample of 99 UR students. We used SPSS as a data analysis tool in analyzing the data collected from questionnaire. The research results identified that Network, Limited cash and e-float by agents, Fraud, Transaction limits, Limited number of agents, High transaction cost and Interoperability mobile money use challenges. It has also figured out that among the challenges only four of them- digital skills, Limited cash and e-float by agents, Limited number of agents and High transaction cost are the most significant challenges. Conclusion we recommended a way forward to addressing the associated challenges. This contributes by providing information to the service users, service providers, and Government’s financial regulator and to future researchers in the same field.