Mobile Money: the Path to Middle Class Adoption

I came across a post that I wrote 2 years ago, and think it’s interesting to compare it to the present day. Have things changed?

Do “people like me” use mobile money?

I’m sure many people use mobile money. I hear lots do, actually. But I don’t. I mean, I’ll send the odd amount over mobile money, but my transactions are neither consistent nor substantial. And I’m fairly certain that people like me don’t use mobile money either.

Who are “people like me”? I live in the Kampala suburbs and drive to work even if it’d be faster and healthier to walk. I own a company SIM card. It’s a pretty good deal — postpaid, with a handsome 3G data package, and I’m already registered for mobile money. I use it all the time. But it’s not my own; I’ll leave this company eventually, and I’ll have to lose that number. “Hi all, this number will not be active with effect from tomorrow. Kindly reach me on 07XXXXXXX”. It’s not mine… and there’s something about keeping my money on someone else’s account that just doesn’t do it for me.

The power of incentives

I’m not given any incentives for trying it out. I love incentives. People like me do. I went into a well-known restaurant the other day and there was a flyer at the checkout counter imploring me to pay with mobile money. Great. Wonderful even. Except that I didn’t have any mobile money on my phone — and, for the whole 45 minutes I was in that restaurant, neither did anyone else. Or maybe they did, but it was easier to pay with cash. It’s what they’d always done, and they didn’t see why they should switch.

I love discounts. Tell me to try it out and give me a 5% discount. Then I might think to keep some money on my phone and try it out next time. I’ll feel like I’m getting some sort of deal. Who doesn’t love a good deal? But I realize it’s not the store owner who’s going to give this deal. The store owner cares only that I pay, not how I pay, unless they too have something to gain — a commission, perhaps. And in fact, it’s likely that they’ll prefer cash. Because the cash register isn’t broken yet.

The need for convenience

Mobile money’s not yet convenient enough. Assuming I’d had money on my phone in that restaurant, had I decided to use it, I’d probably have gotten a frown from the guy working the register, and then been asked to stand to the side. I’d have watched green-eyed as other customers passed me in the queue, while the guy behind the counter signaled to the lady behind the counter, “Mbu, he wants to use mobile money”. She’d have disappeared into the back office and eventually returned, “katorchi” in hand. She’d have asked me for my number, thumbed it into her phone and then realized I hadn’t placed my order yet. Annoyed, she’d have asked me what I wanted, gone back to the other guy to figure out how much it cost, and then realized that the session on her phone had timed out… by the time I got my order in, my car would have been clamped for wrongful parking.

More importantly, mobile money is not yet as convenient as cash. Maybe I realize, in the restaurant, that I have no money on me. I can bet you the first phrase that pops into my head isn’t “mobile money”. It’s not yet “visa debit card” either. It’s “oh glorious ATM”. Until I’m able to move 10,000 UGX from my bank account to my mobile money account without being charged a fee of 400 or more, the ATM machine 100 meters away is going to be more appealing.

It’s great when it works!

Lastly, mobile money didn’t work the last time I tried. Granted, ATMs don’t work sometimes. But there are lots of them, and after kicking the blasted thing three times and cursing the world and the guard, I’ll relent and drive to the other ATM in Wandegeya. When mobile money doesn’t work, you’re left with few option besides, “Ssebo, try again in a couple of hours”. In a couple of hours, my car will have been clamped for wrongful parking.

Maybe.

Luke Kyohere is CEO and CTO of Beyonic, a mobile solutions company dedicated to increasing social impact through mobile technology. In his various roles, he manages and consults on technology for multi-national development projects. For more information on how he and his team are creating impact visit www.beyonic.com.

Photo credit: Erik Hersman

Originally published at beyonic.com on December 14, 2013.