Mobile money works only when people are able to deposit or access monies from no more than a short stroll away from where they live — like from the local merchant downstairs, or the airtime vendor across the road. Any farther, and it just isn’t worth the trouble. Each mobile money provider says they’ve got people out there handling deposits and withdrawals, but up till now I’m yet to bump into any apart from their own offices. That’s not to say that they aren’t out there, there just aren’t enough of them to make any sort of real impact.
One other reason that is inhibiting the growth is poor mobile money platforms. Just like the growing level of transaction without a concurrent growth in standards and regulation as another challenge. Lets be reminded about the natural advantage the mobile network operators have over banks in this space. You might not find a bank or ATM machine on your street, but you’ll almost always find an airtime vendor. And if you’d like proof, just ask the subscribers who would rather wait till tomorrow when the local agent will have cash than make the long trip to the nearest bank. These same airtime vendors and local neighborhood shops if turned into agents, it can massively help the growth of mobile money in Malawi.
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Mobile Money in Malawi – Reasons behind slow growth