INTERNATIONAL JOURNAL OF RESEARCH AND SCIENTIFIC INNOVATION (IJRSI)
ISSN No. 2321-2705 | DOI: 10.51244/IJRSI |Volume XII Issue VIII August 2025
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Mobile Money and Digital Financial Services Ecosystem in Adamawa
State
Musa Samuel Jerry1, & Benson Joshua
Department of Accounting, Adamawa State University, Mubi, Nigeria
DOI: https://doi.org/10.51244/IJRSI.2025.120800085
Received: 05 Aug 2025; Accepted: 10 Aug 2025; Published: 06 September 2025
ABSTRACT
Financial inclusion is essential for economic development, especially in regions with limited access to formal
banking systems. In Adamawa State, Nigeria, mobile money and digital financial services have emerged as
innovative tools for bridging this gap. This study investigates the awareness, adoption, usage, and
socioeconomic impact of these services in the state. Using survey data from 220 respondents and supported by
literature, the findings reveal high levels of awareness and usage, significant economic benefits, but also
persistent infrastructural and educational barriers. Recommendations are provided for improving service
quality, expanding access, and promoting digital literacy.
Keywords: mobile money, POS services, financial inclusion, digital finance, ecosystem
INTRODUCTION
Financial inclusion—defined broadly as the ability for individuals and businesses to access affordable,
appropriate, and effective financial products—remains a pressing challenge in Nigeria. Scholars have offered
different definitions of the term, some focusing on access (the physical and economic availability of financial
services) while others emphasize usage (how frequently and effectively these services are used). These
differences are more than academic; they shape how policymakers design interventions and how success is
measured.
In rural Nigeria, the absence of traditional banking infrastructure amplifies financial exclusion, forcing
individuals to rely on informal systems that can be insecure and costly. Addressing this gap requires solutions
that are not only technically innovative but also socially and economically adaptable to local realities.
In recent years, mobile money and Point-of-Sale (POS) services have become pivotal in the digital financial
services ecosystem. While both aim to improve financial access, they differ in operation. Mobile money
enables users to store, send, and receive money using mobile phones, often without the need for a bank
account.POS services facilitate cashless payments in physical locations, usually linked to bank accounts or
digital wallets.
Evidence from Kenya, Ghana, Zimbabwe, Somalia, and Uganda illustrates mobile money’s transformative
potential (Mutsonziwa & Maposa, 2016; Sackitey, 2018; Bongomin et al., 2018). However, these successes
depend on specific conditions—such as robust mobile penetration, widespread agent networks, and supportive
regulation—that may not be equally present in Adamawa State. POS services, on the other hand, have the
capacity to reduce cash dependency and build users’ credit profiles but require reliable electricity, stable
internet connectivity, and trust in digital transactions to be effective.
Despite the promise, adoption in Adamawa faces obstacles: erratic power supply, poor connectivity, limited
digital literacy, and skepticism toward cashless systems—particularly among older demographics. Recognizing
both opportunities and limitations, this study critically examines the influence of mobile money and POS
services on financial inclusion in Adamawa State, assessing their adoption, usage patterns, and impact on
economic participation.
INTERNATIONAL JOURNAL OF RESEARCH AND SCIENTIFIC INNOVATION (IJRSI)
ISSN No. 2321-2705 | DOI: 10.51244/IJRSI |Volume XII Issue VIII August 2025
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OBJECTIVE OF THE STUDY
The objective of this study is to look at how mobile money and POS services impact financial inclusion in
Adamawa State by analysing how they are used, how they are adopted, and how they affect important financial
indicators like account ownership, transaction volumes, and access to savings and credit. The study also wants
to look into how these services work together to make a more connected and inclusive financial ecosystem,
how social networks can help people use them, and what the pros and cons are of using these tools to make it
easier for people to get money. This study goes beyond just assuming that "success stories" from other places
will happen in Adamawa. It uses real-world data and a critical review of existing research to base its
conclusions on the state's specific social, economic, and infrastructure conditions.
LITERATURE REVIEW
Conceptual Framework
Financial transactions carried out through mobile devices without necessitating a conventional bank account
are referred to as mobile money. It includes services like credit access, savings, bill payment, and money
transfers. Definitions differ; some include a wider range of financial activities, while others concentrate only
on payment functions. This discrepancy results from varying opinions regarding whether mobile money is
merely a conduit for transactions or a full replacement for traditional banking.
Point-of-Sale (POS) services process payments, usually with a card or digital wallet, via electronic terminals.
While POS adoption is frequently cited as an indication of technological advancement, its impact on financial
inclusion hinges on whether it makes formal financial services more accessible or if it merely replaces cash
payments without increasing systemic and wider financial participation.
Research findings and policy directions are impacted by the lack of agreement on the definition of financial
inclusion. While some studies emphasise qualitative factors like affordability, trust, and user empowerment,
others take a strictly quantitative approach, counting account numbers or transaction volumes.
THEORETICAL FRAMEWORK
This study applies two complementary models:
Diffusion of Innovation (DOI) by Rogers, 1962, explains adoption through attributes like relative advantage,
compatibility, complexity, trialability, and observability. While valuable, DOI assumes a relatively linear
adoption process that may not fit environments with infrastructural bottlenecks.
Technology Acceptance Model (TAM) by Davis, 1989, emphasizes perceived usefulness and ease of use.
TAM is strong in explaining individual adoption decisions but less effective in addressing systemic barriers
such as regulation and market competition.
Empirical Studies
Mobile money’s rapid growth in sub-Saharan Africa is well-documented. Kenya’s M-Pesa transformed access
to finance (Jack & Suri, 2011), but its success was aided by a favorable regulatory framework and a dominant
market position—conditions not guaranteed elsewhere. In Ghana, Sackitey (2018) observed improved
transaction efficiency but also found that education and income levels significantly shaped adoption. In
Nigeria, Aker and Wilson (2013) highlighted mobile money’s potential in rural areas, yet pointed to regulatory
uncertainty and weak agent networks as obstacles.
Other findings deepen the picture, Olaleye et al. (2018) identified regional and educational disparities as major
adoption factors. Mutsonziwa & Maposa (2016) noted cost reductions but did not fully explore cultural
barriers to adoption. Bongomin et al. (2018) emphasized social networks’ role in influencing trust and
adoption. Alhassan & Koaudio (2019) linked mobile money growth to macroeconomic gains but assumed
INTERNATIONAL JOURNAL OF RESEARCH AND SCIENTIFIC INNOVATION (IJRSI)
ISSN No. 2321-2705 | DOI: 10.51244/IJRSI |Volume XII Issue VIII August 2025
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causality without detailed testing. Critically, much of this literature assumes that technological readiness
automatically translates into financial inclusion a claim this study examines in Adamawa’s context.
METHODOLOGY
A descriptive survey design was employed. Primary data were collected from 220 residents of Adamawa State
using a structured questionnaire covering demographics, awareness, usage patterns, service preferences, and
perceptions regarding mobile money and digital financial services. Descriptive statistics—including
frequencies, percentages, mean, median, and mode—were applied using SPSS 25 to analyze the data.
RESULTS AND DISCUSSION
The demographic profile showed that 66.2% of respondents were aged 18–34 years; 76% were male, and
90.8% had tertiary education. Urban residents constituted 68.2% of the sample. Awareness was high: 86.6% of
respondents were aware of mobile money and 97.2% were aware of digital financial services. Usage was
similarly robust, with 90.7% having used mobile money and 91.3% having used at least one digital financial
service.
Mobile transfers (72.2%), mobile banking apps (69.9%), and bill payments (44%) were the most common
services. The leading POS providers were Moniepoint (30%), OPay (23%), and PalmPay (16.9%).
Convenience (70.9%), accessibility (62.6%), and transaction speed (60.6%) were primary adoption motivators.
Network issues (55.4%) and high transaction fees (8.9%) were notable challenges. Nonetheless, 93.5% of
users reported being satisfied or very satisfied. Economic benefits included easier transactions (44.8%),
improved business operations (29.5%), and enhanced savings capability (26.2%). Overall, 77.1% believed that
digital financial services had improved financial inclusion in their community.
The high awareness and adoption levels reflect the relative advantage and compatibility of mobile money and
POS services with users’ daily financial needs, supporting the DOI theory. The strong influence of perceived
usefulness (e.g., convenience) and perceived ease of use (e.g., app interfaces) corroborates TAM. Despite
pervasive network challenges and fees, positive economic outcomes suggest that digital finance is a viable
pathway to socioeconomic empowerment in Adamawa State.
RECOMMENDATIONS
1. Infrastructure development: Expand network coverage and improve power supply to reduce service
downtime.
2. Service quality: Simplify user interfaces and offer multilingual support to accommodate diverse literacy
levels.
3. Security enhancement: Deploy biometric authentication and advanced fraud detection systems.
4. Digital literacy programs: Provide community-based training, particularly for rural and older populations.
5. Policy support: Foster collaboration among stakeholders and enforce consumer protection regulations.
CONCLUSION
Mobile money and digital financial services play an increasingly central role in promoting financial inclusion
in Adamawa State. Although challenges remain, particularly in infrastructure and user education, the
socioeconomic benefits are evident. Strategic interventions addressing these barriers can unlock the full
potential of digital finance for inclusive growth.
ACKNOWLEDGEMENT
We wish to acknowledge and thank the Tertiary Education Fund (TETFUND) for sponsoring this study.
INTERNATIONAL JOURNAL OF RESEARCH AND SCIENTIFIC INNOVATION (IJRSI)
ISSN No. 2321-2705 | DOI: 10.51244/IJRSI |Volume XII Issue VIII August 2025
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