Drivers of a Customer’s Choice of a Mobile Money Agent for a Mobile Money Service in Kampala, Uganda

Musiime D.,  Alinda F., Karyeija G.K


Though the mobile money industry is growing with a significant potential of enhancing financial inclusion and economic growth, mobile money services face a critical challenge of improving service quality to attract and retain customers. This article examines the drivers of a customer’s choice of a mobile money agent for a mobile money service in Kampala. Specifically, the study explores the effect of courtesy and efficiency of mobile money agents as well as cleanliness of their business premises. The analysis is based on data of 188 mobile money agents and customers across all mobile money service providers in Uganda. The study adopted a cross-sectional survey method using a mixed methods research approach. The data was collected through a questionnaire and face-to-face interviews. Data was analyzed using descriptive statistics and the linear regression model was fitted to determine the significant drivers for customers’ choice of mobile money agent. Descriptive statistics indicated a situation where mobile money agents are generally; courteous, efficient and operate from clean business premises. The regression model results revealed a significant influence (p<0.05) of courtesy and efficiency of the agent as well as cleanness of the business premises on customers’ choice of mobile money agents to transact with, affirming the hypothesized effect of these variables. The estimated coefficients indicated that improving courtesy and efficiency as well the cleanliness of the business premises was associated with more than 80% chance of attracting a customer to a particular mobile money agent. In lieu of the findings, the paper recommends strategic measures to all mobile money agents and service providers in Uganda who wish to improve quality of their service, satisfy, attract and retain customers to their businesses.


Key words: Mobile Money Services, Mobile Money Agents, Courtesy, Cleanliness, Efficiency, Choice

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