Impact assessment of mobile money systems on the informal taxi sector in Cape Town
Date
2014-01-21
Authors
Phillipus, Ahlben
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Abstract
Context
The purpose of this research was to assess the potential impact of MTN
MobileMoney and Vodacom M-Pesa services on the informal taxi sector in Cape
Town, South Africa.
The research intended to assess whether there was any impact of MTN
MobileMoney and Vodacom M-Pesa mobile money systems on the informal taxi
sector, as well as to determine the effect on business in relation to the role of
banking in business.
The method of data collection
A questionnaire administered to respondents in the informal taxi sector in Cape
Town, was used as a basis for the study. The sample comprised of twenty-five
respondents and each respondent was requested to answer questions based on
their current business operation, the banking practice used and opinions related to
the use of MTN MobileMoney and Vodacom M-Pesa mobile money systems
within their business.
Key Findings
MTN MobileMoney as well as Vodacom M-Pesa mobile money systems have had
a small conceivably insignificant impact on the informal taxi sector. There is
limited transfer of money between users in exchange for goods or services, as
identified through the research conducted within the informal taxi industry.
From evidence gathered and observations noted it can be concluded that MTN
MobileMoney and Vodacom M-Pesa mobile money systems are too costly for the
consumer to transact on a frequent basis and on small payment values. However
mobile money is willingly accepted as forms of payment for a taxi fare, by the taxi
owner, although once received the taxi owner in receipt of the funds
predominantly transfers money between users who have relations with each other
as well as purchasing airtime.
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Key Message
There is willingness to accept MTN MobileMoney and Vodacom M-Pesa as forms
of payment and thus mobile telephony companies should continue to find new and
innovative ways to turn the mobile phone into a tool for accessing basic banking
services.
The banking industry will certainly need an improved understanding of people’s
needs, current adoption and usage patterns of the informal taxi sector and
develop products or mobile payment systems that engage with and meets the
informal taxi sector’s needs.
Mobile money systems could provide a platform that could potentially be
leveraged to service the financial needs of the informal taxi sector. In addition
considering that two million passengers in within Cape Town and sixteen million
passengers within South Africa use the taxi industry daily, if successful it has the
ability to enable and catalyse the development of mobile commerce across
multiple sectors for both the high income earners as well as the bottom of the
pyramid
Description
MBA thesis
Keywords
Mobile payments, Mobile money