Adoption and intensity of use of mobile money among smallholder farmers in rural Ghana

Abstract

The impact of mobile money services in sub-Saharan Africa have been largely recognised. However, empirical studies are principally lacking on the factors influencing the decision to own a mobile phone (first hurdle), register with mobile money (second hurdle) and the intensity of use of mobile money services (third hurdle). This study examined the determinants of the mobile phone ownership, drivers of registration (participation) of mobile money services, and the intensity of use of mobile money services in rural Ghana by employing the triple hurdle approach. The first and second hurdle were analysed using the logit model while quasi-poisson regression was used to analyse the third hurdle. The analysis from the cross-sectional data showed that the decision to own a mobile phone was driven by household size, marital status, the farm size, access to electricity, income status and the type of occupation engaged, whereas the decision to register with mobile money was influenced by the age, educational status, marital status, household size, farm size and the type of occupation engaged in by the household head. The intensity of usage of mobile money services was influenced by the age of the household head, higher educational level, marital status of the household head, household and farm size as well as the distance of the household heads from the mobile money agent which directly influences the intensity of use of mobile money services by household heads. The study recommends that strategies that promote access to electricity and occupation in the formal sector or both farming and trading in the rural communities should be promoted. Furthermore, policy attention should focus on location, farmers and farm characteristics.