Assessment of mobile phone money transfer risks to the customer in Tanzania

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University of Dar es Salaam
Money transfer schemes have evolved to the next generation of electronic payments, the mobile channel. Money transfer services for both domestic and international remittances are shifting from traditional providers to wireless carriers who are able to compete for consumer market share on the basis of technological ubiquity and lower cost services. The main intent of the study was to assess the mobile phone money transfer risks to customers. The study was approached with an exploratory research design employing deductive technique. The study used qualitative approaches where research findings were deductively analyzed. A cross-section stratified sample of 80 mobile money transfer stakeholders was used. Data were analyzed through the use of graphs, plots and diagrams with an assistance of SPSS. Data were collected through interviews, questionnaires and examination review of various documents The study findings revealed that, mobile phone money transfer customers are exposed to risks of fraudulent practices from the agents, loss of customer’s money, unavailability of the services, prolonged processing time and money sent to wrong person. Findings revealed that BoT so far has not established regulations guiding the mobile phone money transfer operations. Customers involved in mobile phone money transfer operations are mostly exposed to financial risks pertaining to operational problems, agent’s aspects and customers themselves through errors and ignorance. The study recommends on a need for improving the financial sector regulation and supervision to incorporate mobile phone money transfer operations, improving telecom sector regulation and supervision and the strengthening of mobile money regulation and supervision.
Available in printed form, East Africana Collection, Dr. Wilbert Chagula Library, Class mark (THS EAF HG1710.T34M67)
Electronic fund transfer, Customer services, Tanzania
Ally, M, (2013) Assessment of mobile phone money transfer risks to the customer in Tanzania, Master dissertation, University of Dar es Salaam. Dar es Salaam.