The Impact of Mobile Money on Financial Service Usage in Addis Ababa
| dc.contributor.advisor | Tenkir Seifu (PhD) | |
| dc.contributor.author | Christian Tesfaye | |
| dc.date.accessioned | 2026-03-03T05:13:18Z | |
| dc.date.available | 2026-03-03T05:13:18Z | |
| dc.date.issued | 2025-05 | |
| dc.description.abstract | Financial inclusion remains a critical challenge in Ethiopia, where a large, underserved population, particularly in rural areas, faces barriers to economic participation. Low levels of financial service usage, including account ownership, digital payments, and loan uptake, persist compared to regional peers, hampered by factors like limited access points and lack of documentation. Mobile money, leveraging the ubiquity of mobile phones, offers a potent solution, driving financial inclusion across Sub-Saharan Africa. Ethiopia has embraced this potential, with the National Bank of Ethiopia (NBE) prioritizing digital financial services, including mobile money, to achieve 70% adult financial inclusion by 2025. The subsequent launch of multiple mobile money platforms, including Telebirr and M-Pesa, has spurred significant user growth, especially for Telebirr. This study investigates the impact of this growing mobile money adoption on financial services usage in Addis Ababa, addressing the overarching research question: How does the adoption of mobile money impact financial services usage? Specifically, the study seeks to quantify the impact of mobile money adoption on savings rates, loan uptake, and digital transaction adoption in the city. To achieve this, a quantitative research approach was employed, utilizing a survey research design to collect primary data directly from respondents. The study surveyed 100 adults aged 20-64 in Addis Ababa, selected through stratified random sampling, with stratification based on mobile money usage (users and non-users), gender, and age. The survey instrument, a structured questionnaire with Likert scale questions, captured information on respondents’ financial behaviors and perceptions related to digital payments, savings, and loan access. Key findings from this study demonstrate that mobile money adoption does not automatically lead to increased financial services usage. While descriptive analysis showed a strong positive shift towards digital payments, regression analysis did not confirm a significant causal link based solely on ownership. Perceptions of easier saving did not translate to increased saving, and loan uptake increases were not consistently linked to mobile money in regression. Lack of awareness and perceived complexity hindered adoption among non-users, emphasizing that adoption alone is insufficient to drive broader financial service engagement. | |
| dc.identifier.uri | https://etd.aau.edu.et/handle/123456789/7775 | |
| dc.language.iso | en_US | |
| dc.publisher | Addis Ababa University | |
| dc.subject | Mobile money | |
| dc.subject | financial inclusion | |
| dc.subject | financial services usage | |
| dc.subject | digital payments | |
| dc.subject | loan uptake | |
| dc.subject | savings rate | |
| dc.title | The Impact of Mobile Money on Financial Service Usage in Addis Ababa | |
| dc.type | Thesis |