Using Electronic Payment Programs as an Anti-Corruption Strategy in Africa

The theft of public revenues is a daily ethical failing associated with corruption in African countries. Yet many government sectors and agencies in Africa have failed to use ICTs to create the required culture of transparency. What do recent literature and empirical research findings reveal about solutions to these problems? Thus, the primary focus of this chapter is to conduct an extensive literature review on how electronic payment programs can be used as an anti-corruption strategy in Africa. Given the complex nature of corruption, the focus in this proposed chapter is to understand how other developing countries like Malaysia have successfully used electronic payment programs to reduce corruption and improve national accountability. A critical review of the observed ambiguity in the contemporary definition of corruption from different cultures in Africa will be reviewed. The ambiguity of the true commitment of African power elites in fighting corruption will also be examined with alternative solutions from existing literature.

Mobile Financial Services

The chapter explores financial exclusion, its causes, and consequences in society. The chapter found that the existing discrepancy in financial inclusion between the developed and developing world is driven by financial exclusion that makes it difficult for financial service providers to expand outreach to the poor at affordable prices. The chapter aims to investigate the role of mobile financial service design and development in dealing with financial exclusion. It was found that mobile financial services are promoting financial inclusion in various markets. However, few studies have been undertaken on the benefits of mobile financial services in dealing with the high rates of financial exclusion. The chapter recommended that to achieve financial inclusion, there is need for mobile financial services providers to take into account customer experience through the ease of using the phone interface. The chapter concluded that there is need for scholars in the fields of finance and economics to conduct research in the areas of mobile financial services and their role in society.

Impact of Mobile Payment Applications and Transfers on Business

Despite Kenya having over 40 banks, only three banks are accessible to the residents of Kibera Slum. Kibera Slum is located on the outskirts of Nairobi and is home to approximately 0.75 million people. A majority of the population in Kibera Slum comprises of either unemployed or casually employed adults whose income levels are considerably low, making it impossible for many of them to operate formal bank accounts. However, the evolution of mobile money technologies has made financial inclusion and innovation possible for Kibera Slum residents. The mobile-banking facility known as M-Pesa enables mobile money remittances and has an outstanding record of financial inclusion and innovation. The objective of this research was therefore to examine financial inclusion and innovation in the Kibera Slum. The study used self-administered questionnaires to answer to two objectives. The study found out that M-Pesa services are accessible and widely used in Kibera Slum. The study also found that M-Pesa business is rated average as a source of income to M-Pesa agent. Ultimately, the study observed that financial inclusion and financial innovation are prevalent in Kibera Slum. These findings have significant implications: the study sheds light on the fact that the slum dwellers have embraced the use of M-Pesa services as a platform to access financial services, establishing more innovative financial services that will help the low income earners expand their businesses and training M-Pesa agents will enhance sustainable business growth and promote innovation.

Employing Artificial Intelligence and Algorithms in the Digital Lending Industry

Lenders employ AI and algorithms in analyzing the potency for loan advancement. AI and algorithms are seen as efficient, and banks seem to be adopting or exploring the AI applications and algorithms to manage risk and cut bottom line cost, thus replacing costly, laborious, and repetitive activities along the value chain. The chapter offers practical solution to the practitioners and stakeholders on identifying customers associated with consumer risky default behaviors. It then advises on how to deal with these issues and what banks should employ to curb risky borrowing behavior.

Impact of Trust on Customer Adoption of Digital Payment Systems

With the government spending huge amounts on making digital payments successful, the reports indicate that the rate of penetration is not as rapid as it is supposed to be. Many third parties are entering into the payment sector with alternative payment systems at retail sector. This study is based on the literature available on the consumer behaviour theory of planned behaviour (TPB). The purpose of the research is to test the relationship between the trust-based factors and the antecedents of the behavioural intention to use electronic payments by the users. Presently, the research question that has been concentrated on is to study the impact of trust on the attitude and intention to use electronic payments in India. The objective of the study is to examine the role of trust in technology adoption model. The findings indicated that trust acts as a significant determinant of consumer adoption of digital payments in India. Therefore, in order to find the answers to the research question, the study has been conducted among the users of electronic payments.

Mobile Money Transfer

The chapter reviews the growth of mobile money transactions (MMTs) and their effect on international remittances and financial inclusion. The novelty of MMTs is its widening adaptation beyond Sub-Saharan Africa with increased confidence in use of MMTs by international humanitarian agencies and governments in reaching out to citizenry through government-to-people (G2P) as well as people-to-government (P2G) payment platforms. The chapter is conceptualized on the emergent themes emanating from the World Bank data under the G20 financial inclusion indicators in 60 countries with remarkable MMTs per 100,000 adults. Emergent findings from the data indicates of MMT benefits to small countries such as the Pacific Island countries, benign economic policies under West African countries, increased uptake of cash and voucher transfers through humanitarian support, and the pursuit of cashless economy through mobile wallets. In essence, the growth of MMTs is currently viewed as leap-frog strategy to the low- and middle-income countries embracing MMTs in promoting the sustainable development goals.

Adoption of Mobile Payment Application and Its Impact on Business

Technology development has blessed the business environment with many tremendous opportunities and created several challenges. One of these developments is mobile payment applications, which are inevitable in the modern word. Companies, customers, etc. are adopting this modern mobile application to avail the service of mobile payment. Without any doubt it has many advantages, but it has also many challenges in adoption. This chapter discusses the adoption of mobile application and its impact on business. Security, ease of use, service availability, and risk are some of the main factors contributing to the adoption of mobile payment application. These factors not only affect the adoption of MPA but also have a strong link with business. As MPA changes the mood of business, again its pros and cons exist, and there is a need to be addressed. This chapter concludes a proposed model for the adoption of mobile payment application after thorough literature review.

Financial Inclusivity

M-Pesa is a mobile phone-based money transfer system in Kenya that was introduced in 2007 by Safaricom, a subsidiary of Vodafone. Since its inception, the mobile money industry has witnessed some unprecedented growth mainly due to the diverse products, key among them M-Pesa. Powered by the over 100% mobile phone penetration in Kenya, M-Pesa has revolutionized the social and economic lives of Kenyans. In this chapter, using case studies, the author explores the impact M-Pesa has had on women in Kenya. In reference to banking, the author looks at the regulations, polices, and restrictions of M-Pesa against the formal banking industry to understand which is more suited to women and hence its rate of adoption. Another parameter that the author explores is the convenience that M-Pesa guarantees the user and how this has impacted on the effectiveness and efficiency of transactions among women.

Impact of Mobile Money on Financial Crime, Money Laundering, and Terrorism Financing

Financial crime, money laundering, and terror financing have been perennial menaces that downplay the major headway made in the financial transaction space. Businesses and individuals have found it prudent to always try remaining ahead of the perpetrators behind the vices. The springing into life of the mobile money in the second half of the first decade of this century has revolutionized the manner with which risk management in this respect is handled. In this chapter, the author posits that although mobile money has led to greater financial inclusion, the rate with which the myriad financial crimes have been reported over the past decade in the face of this phenomenon raises the need to stay abreast of developments in this space.

Ethics in Mobile Banking

This chapter addresses the ethical issues relating to mobile money transfer in Kenya. The mobile money transfer industry has grown exponentially in Kenya. Both the formal and informal sectors have embraced the use of mobile money transfer as a convenient means of transacting. With a plethora of advantages, most notably financial inclusion of the informal sector, mobile money transfer also has its ethical demerits. Despite the ethical challenges being experienced, the use of regulation coupled with education of users on ethical issues and security of mobile money transactions will assist in reducing unethical conduct.