The impacts of mobile money services on subsistence marketplaces in rural Cambodia

Accessing financial services via mobile phone technology, referred to as mobile money services, is a relatively recent innovation that is making a significant difference to the lives of those previously financially excluded in developing countries. The aim of this research is to explore the impacts of mobile money services on subsistence marketplaces. Over four billion people live in subsistence marketplaces, consumer and entrepreneur communities living at subsistence income levels, concentrated mainly in developing countries. Many studies have been undertaken on mobile money services focusing on consumer adoption, technology design improvements and business-driven models. However, the impacts of this innovation in the context of subsistence marketplaces are not yet well understood and require exploration to further reflect the subsistence level and informal economy setting. This research responds to the call for rich, qualitative research that can extend the conceptual understanding of the impacts of mobile money services on the lives of those living in subsistence marketplaces. This research extends previous mobile money impact studies and draws upon literature on subsistence marketplaces, consumer wellbeing, subsistence entrepreneurship and financial capability. Cambodia is used as an example in this thesis to increase understanding of the role and impact of mobile money services in subsistence marketplaces. The Most Significant Change (MSC) methodological framework was adapted to suit the purpose of this study. Using the MSC as the basis for the research framework enables the qualitative research process to focus on the deeper issues of how mobile money services affects the daily processes of individual, community and business life. This involved the collection of significant change stories emanating from the field or from the micro-level that described the effects of an intervention on people’s lives. Primary data came from face-to-face interviews with a sample of mobile money customers. Observational data were also collected. These data were collected from 15 district towns within six rural provinces to capture in context customer perceptions/experiences before and after using mobile money services. The findings show that mobile money services have the potential to gain greater market acceptance and penetration when used effectively to improve the wellbeing and daily activity processes of individuals, communities or business life within subsistence marketplaces. The mobile money platform as a business solution maximises the value of subsistence entrepreneurship activities through reduced transaction costs, improved business process activities, higher profit margins and greater market access opportunities. Understanding the effects of technology-based services, like mobile money services, on financial capability provides greater insights into how mobile technology can best be utilised to increase opportunities for consumers to access financial products and services. By doing so, appropriate and affordable products and services can further promote financial inclusion and improve financial habits, behaviours and practices in subsistence marketplaces. This research contributes to the broad literature on the impacts of mobile money services on subsistence marketplaces from a theoretical perspective. This research also contributes valuable insights into the broader work of researchers, practitioners and policymakers seeking to improve people’s livelihoods through technology