Regulatory Framework and the success of Mobile Money Industry in Uganda: A case of Airtel Money.
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The study investigated the relationship between the regulatory framework and the success of the mobile money industry in Uganda with specific focus on Airtel Money. The study sought to achieve three objectives namely; to find out the relationship between institutional framework and the success of Airtel Money in Uganda, to assess the relationship between the law and the success of Airtel Money in Uganda and to examine the relationship between policies and the success of Airtel Money in Uganda. The study adopted a descriptive cross sectional survey design where both quantitative and qualitative approaches were used. The study population was 154 who were expected but 120 respondents returned the survey instruments representing a response rate of 77.9%. The data were collected using questionnaires and interviews and analysis was done using regression analysis, correlation coefficients, one way analysis of variance and independent sample tests for the quantitative findings. Qualitative analysis was done using content and thematic analysis. The findings revealed that there is a positive relationship between institutional framework, law and policies and the success of mobile money in Uganda.The results on institutional framework and the success of mobile money indicated that r = 0.191, Adjusted r square = 0.401, p = 0.000 < 0.05, the results for law and success of mobile money indicated that r = 0.648, Adjusted r square =0.378 p = 0.011 > 0.05 and the results for policies and success of mobile money revealed that r = 0.512, Adjusted r square=0.214, p = 0.006 < 0.05. Uganda has laws in place laws but not directly enacted and aimed at regulating mobile money. It was concluded: findings revealed that Uganda has policies in place for the regulation of the mobile money industry. It was observed that there are a number of policies that regulate mobile money. The public is aware of the existing policies on the mobile money industry and some policies in place have not been effectively utilized. There is need to enact laws that will directly regulate mobile money in Uganda. Regulation should be uniform across all providers to screen, qualify and monitor agents. Policies should be developed that would ensure that the existing rules for out of court redress and complaint channels apply to mobile payments or set specific standards tailored to new models as necessary. These mechanisms should be effective and should match existing transacting channels such as those for other payment systems such as the redress procedures and channels meeting minimum standards and the avenues are communicated clearly and consistently. There should be an effective monitoring of emerging consumer issues and a decision on when and what type of regulatory action is necessary and effective to avoid loss of confidence or curve abuse by Mobile Network Operators.