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The Impact of Mobile Money on Poor Rural Households

SDGs Impacted

This paper studies the effect of rolling out mobile money agents in rural Northern Uganda through a randomized experiment. Administrative data on mobile money transactions suggest that the agent rollout increased the probability of sending and receiving peer-to-peer transfers. Data that the agent rollout led to cost-savings for remittance transactions. The analysis finds no effect on savings, agricultural outcomes, or poverty. Overall, the findings add new evidence that mobile money can improve livelihoods even in poor and remote settings.

Impact / Outcome
The agent rollout increased the probability of using mobile money in clusters that are far away from a bank branch. We do not see an effect of the rollout on savings or the probability of receiving or sending money as reported in the survey data. However, there is some evidence that respondents in treatment clusters that are far away from a bank branch sent larger amounts of money than those in control clusters and they pay lower transportation costs for receiving money. Finally, compared to the control group, respondents who received or sent money in treatment clusters far away from a bank branch are less likely to report that agents were far and that prices were high. Overall, the agent rollout seems to have facilitated receiving and sending money in clusters far from a bank branch.
Funding sources
Private
Key Metrics
Increased the probability of sending and receiving peer-to-peer transfers through agents rollout
Locations
Africa, Uganda
Sector
Financial services
Intervention lever
Indirect government
Operating model
Fully private
Target population
Rural
Year published
01 January 2019
Organization involved
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World Bank Group

The EDISON Alliance

A World Economic Forum Initiative