Learning from the mobile payment role model: lessons from Kenya for neighboring Rwanda

ABSTRACT

Nationwide adoption of mobile payment (m-payment) has been a key driver for the socio-economic development in emerging markets. The Rwandan m-payment adoption lags behind the one in neighboring Kenya and its own ambition. This explorative study examines the factors that could enhance m-payment adoption in Rwanda. We extend the Technological, Organizational, and Environmental (TOE) framework (Tornatzky, L., & Fleischer, M. (1990). The process of technology innovation. Lexington, MA: Lexington Books) and apply it first to Kenya’s success story of M-Pesa and then to Rwanda’s main m-payment service. Based on our analysis, we determine several anchor points where Rwanda – to improve its economic situation and national welfare – could learn from M-Pesa. Further, we offer country-specific recommendations to enhance Rwanda’s national welfare via m-payment adoption also among the formerly unbanked population.

KEYWORDS:

• ICT4D
• Mobile payment
• emerging markets
• Rwanda
• Kenya
• M-Pesa
• technological
• organizational and environmental (TOE) framework

Disclosure statement

No potential conflict of interest was reported by the authors.

Notes on contributors

Marthe Uwamariya is a PhD student at Department of Media and Technology Management, University of Cologne, Germany, funded by the Government of Rwanda. She holds two Master Degrees in Technology Management and in Business Administration, obtained from University of Rwanda and Catholic University of Louvain in Belgium. She has ten years of practical experience in ICT at Rwanda Utilities Regulatory Authority Rwanda. Her research interests are in mobile commerce, technology adoption.

Claudia Loebbecke holds the Chair of Media and Technology Management at the University of Cologne, Germany. She was President of the Association for Information Systems (AIS), which named her AIS Fellow in 2012. She is Member of the European Academy of Sciences (EURASC) as well as the European Academy of Sciences and Arts (EASA). She served extensively as Senior Editor for prestigious IS journals (ISJ and JSIS). Claudia holds a PhD in Business (Dr. rer. pol.) from the University of Cologne, Germany, and an M.B.A. from Indiana University, Bloomington, Indiana, USA.

Notes

1 In Mozambique, m-payment increased savings and transactions (Catia & Pedro, 2012). In Niger, it reduced the transaction costs while increasing consumer flexibility and privacy (Aker, Boumnijel, McClelland, & Tierney, 2013). In rural Cambodia, m-payment brought benefits of time, security and convenience especially for micro-entrepreneurs (Vong, Fang, & Insu, 2012).

2 E.g. Argent et al., 2013; Boer & de Boer, 2010; Camner et al., 2009; Darren et al., 2013; Dayadhar, 2015; Evans & Pirchio, 2015; Heyer & Mas, 2011; Hughes & Lonie, 2007; Jack & Suri, 2011; Jack & Suri, 2014; Jane, 2015; Luarn & Lin, 2005; Mas & Radcliffe, 2010; Munyegera & Matsumoto, 2016; Muthiora, 2015; Ndiwalana & Popov, 2008; Otieno & Kahonge, 2014; Schierz, Schilke, & Wirtz, 2010; Slade, Williams, Yogesh, & Niall, 2015; Wang et al., 2003.

3 The coding table was included in the review and is available to the readers upon request.