Effect of Mobile Money Services on the Performance of Micro-Businesses In Bida, Niger State

Abstract

This study investigates the effect of mobile money services on the performance of micro-businesses in Bida, Niger State, Nigeria. Mobile money, which is described as an online financial service, through which a transaction is made possible using a mobile phone and without the necessity of having a formal bank account, has become an aspect of financial inclusion within the developing economies. The study relies on primary data of 383 micro-business proprietors who were picked by using stratified random sampling. Analytical software such as descriptive statistics, correlation analysis and multivariate regression (MVREG) was used to test the assumed relationship between mobile money adoption and performance indicators, proxied revenue growth and profitability. Findings indicates that the use of mobile money ( = 0.121, p < 0.01) and profitability ( = 0.109, p < 0.01) has a significant positive effect on cash flow, transaction costs, customer convenience, and, as a result, profitability. The results are consistent with the world literature that highlights the transformative nature of digital finance in reducing the financial inclusion gap. The study recomments that enhancing agent networks of mobile money, enhancing digital infrastructure, and enhancing financial literacy can help to enhance micro-business resilience and spur inclusive local economic development.