Mobile money adoption and usage and financial inclusion: mediating effect of digital consumer protection
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Date
2020
Journal Title
Journal ISSN
Volume Title
Publisher
Digital Policy, Regulation and Governance
Abstract
Drawing from the argument that mobile money services have a significant potential to provide
a wide range of affordable, convenient and secure financial services, there have been rampant frauds on
consumers of financial products over the digital financial platform. Thus, this study aims to establish the
mediating effect of digital consumer protection in the relationship between mobile money adoption and
usage and financial inclusion with data collected from micro small and medium enterprises (MSMEs) in
northern Uganda.
Design/methodology/approach – To achieve the main objective of this study, a research model was
developed to test for the mediating effect of digital consumer protection in the relationship between
mobile money adoption and usage and financial inclusion. The data were collected from MSMEs and
structural equation modelling in partial least square (PLS) combined with bootstrap was applied to
analyze and test the hypotheses of this study. The direct and indirect effect of mobile money adoption
and usage on financial inclusion was tested through digital consumer protection as amediator variable.
Findings – The findings from the PLS-structural equation modelling (SEM) showed that mobile money
adoption and usage has both direct and indirect effect on financial inclusion. Moreover, financial
inclusion is influenced by both mobile money adoption and usage and digital consumer protection.
Research limitations/implications – The study used partial least square (PLS-SEM) combined with
bootstrap confidence intervals through a formative approach to establish the mediating effect of the
mediator variable. Hence, it ignored the use of covariance-based SEM and the MedGraph programme.
Furthermore, data were collected fromsamples located in Gulu district, northern Uganda and specifically
from MSMEs. This limits generalization of the study findings to other population who also use mobile
money services.
Practical implications – Promoters of digital financial services, managers of telecommunication
companies, and financial inclusion advocates should consider strengthening the existing digital
consumer protection laws on the mobile money platform. A collaborative approach between the mobile
network operators, financial institutions and regulators should tighten the existing laws against mobile
money fraudsters and an efficient mechanism for recourse, compensation and remedy should be set up
to benefit the victims of frauds and cybercrime on the Fintech ecosystem.
Originality/value – The current study gives a useful insight into the critical mediating role of digital
consumer protection as a cushion for promoting financial inclusion through mobile phones over the
Fintech that face great threat and risk fromcyber insecurity.
Description
Keywords
Mobile money services, Digital consumer protection, Financial innovation, Financial inclusion, Cyber insecurity, Fintech ecosystem
Citation
Bongomin, G. O. C., & Ntayi, J. M. (2020). Mobile money adoption and usage and financial inclusion: mediating effect of digital consumer protection. Digital Policy, Regulation and Governance.