Mobile Money Transfer: The Process Model Perspective

Abstract

Mobile Money Transfer (MMT) started in Kenya as MPESA. It has been so successful and widely cited as a highly innovative service with important effects. The service has received significant attention from academic circles including its acceptance, extent of access, awareness, adoption, Infrastructure levels, impact, politics and regulations, Comparing the service. However, scholars have failed to notice the process model perspective: the exact details of the service are missing. In this paper, based on a proposed MMT Customer Journey, we define MMT processes: the tasks that altogether create the MMT customer gains. We focus on the functional communication model and provide a graphical notation for specifying the processes as used in MMT. Again, we show Mobile Money Transfer Research hitherto.

Full text

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Mobile Money Transfer: The Process Model
Perspective
Adasa Nkrumah K. F.
University of Electronics
Science and Technology of
China, SME – CWAS. 2006,
Xiyuan. Ave, West Hi-Tech
Zone. Chengdu 611731.
008613540249278
adasankrumahkofi@gm
ai.com
Li Ping
University of Electronics
Science and Technology
of China, CWAS. 2006,
Xiyuan. Ave, West Hi-Tech
Z. Chengdu611731.
008613881984086
lip@uestc.edu.cn
Anjum Safia.
University of Electronic
Science and Technology
of China, SME. 2006,
Xiyuan. Ave, West Hi-Tech
Zone. Chengdu 611731.
0086 155 2076 8235
Safia_anjum81@yaho
o.com
Md Altab Hossin
University of Electronics
Science and Technology of
China, SME. 2006, Xiyuan.
Ave, West Hi-Tech Zone.
Chengdu 611731.
008617313002830
altabbd@163.com
ABSTRACT
Mobile Money Transfer (MMT) started in Kenya as MPESA.
It has been so successful and widely cited as a highly
innovative service with important effects. The service has
received significant attention from academic circles including
its acceptance, extent of access, awareness, adoption,
Infrastructure levels, impact, politics and regulations,
Comparing the service. However, scholars have failed to notice
the process model perspective: the exact details of the service
are missing. In this paper, based on a proposed MMT Customer
Journey, we define MMT processes: the tasks that altogether
create the MMT customer gains. We focus on the functional
communication model and provide a graphical notation for
specifying the processes as used in MMT. Again, we show
Mobile Money Transfer Research hitherto.
CCS Concepts
Information systems➝ World Wide Web ➝ Web
applications ➝ Electronic commerce ➝ Electronic funds
transfer.
Keywords
Mobile money transfer (MMT), Electronic funds transfer,
Process Model, Customer Journey.
1. INTRODUCTION
A business process has been defined as a "group of tasks that
altogether create an outcome of value to customers" [2].The
main aim of which is to offer each customer with the right
deliverable in terms of the right product or service, that has a
high degree of performance measured against cost, longevity,
service, and quality. Following the work centered analysis, the
business process is at the center of any enterprise. There exist
mutual dependencies among the elements of customers,
products/services, business processes, participants,
information, technology, context, and infrastructure. This is
because there are processes that are executed by people, also
called participants. We use processes to create and
communicate information and apply information technology.
When there is a change in a process, there is a corresponding
change in the other elements to make sure that they are in
constant balance. products and services are appropriate for
customers and customers demand services, business processes
are appropriate for producing the products and services,
participants, information, and technology are appropriate for
the business processes, and vice versa. A process model, on the
other hand, is a group of logically coherent process elements
belonging together (e.g., approval, billing, or shipping) [3].
Mobile money transfer (MMT) started in Kenya as MPESA.
The service began as a research project in telecoms and
microfinance and was formally launched as a money transfer
system in 2007. In December 2010 issue of the Economist
through its annual Innovation Awards given the social and
economic innovation category to Nick Hughes and Susie
Lonie, co-architects of M-PESA. M-PESA is the concatenation
of “M” for mobile and “Pesa”; the Swahili word for cash. The
service concept is very simple and easy to use: An M-PESA
registered customer can use his or her mobile phone to transfer
money securely, quickly, and across other customers directly
onto their mobile phone account. The important thing is that
the customer does not need to have a bank account. Registered
users turn and exchange physical cash into electronic-money,
commonly referred to as wallet, with a registered agent. With
the e-cash (wallet), the user follows simple steps on their
phones to transfer money or make payments through their
accounts. The service has been so successful and widely cited
as a highly innovative service with important effects [4], [5],
[6], [7]. It is claimed to be ‘the most successful mobile phone-
based financial service in the developing world [8], to the
extent that one can now withdraw money via ATM. It has
therefore been replicated in other parts of the world, especially
in developing countries.
Mobile money transfer has received significant attention from
academic circles. Much of this literature has focused on the
acceptance [1], extent of access [9], awareness [10], adoption,
Infrastructure levels [11], impact of MMT [12], The politics
and regulations [13], Comparing the service [14], among
others. Recently, it has also been replicated in other parts of the
world, even as a form of cross-border transfers, not only in
developing countries. However, scholars have failed to notice
the process model perspective. The service has been highly
successful in developing countries. Meanwhile, the exact
details of the service are missing. Five main categories of usage
of process modeling can be distinguished [3]; Human sense-

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making and communication, Computer-assisted analysis,
Quality management, Model deployment and activation, and
Using the model as a context for a system development project.
We focus on the communication aspect and provide a graphical
notation for specifying the processes as used in MMT. In
agreement with Brocke & Rosemann, (2007), different
abstraction levels are considered for a complete business
process modeling. [15] elaborates horizontal abstraction and
vertical abstraction. As shown in figure 1, We focus on
function modeling as encapsulated in vertical abstraction. By
functional model we show the units of work that are being
executed in the context of MMT that are realized by knowledge
workers and information systems.
By focusing on the functional communication model, we mean
the flow of MMT activities, decisions, and events; suffice to
say the collaborations by way of the conversations and
interactions among the different MMT participants. Also, we
consider MMT choreographies; the tasks performed by the
various participants and how each participant coordinate
interactions via messages. We show the interactions between
the Mobile Network Operators (MNOs), the Mobile Money
Transfer Agents (MMTAs), and the MMT customers as
different entities. We show the different message and/or
document exchanges between these participants and decisions.
To the best of our knowledge, this is the first attempt to
examine to explore process model as far as mobile money
transfer is concerned.
A diversity of approaches and process notations have been used
for process modeling and workflow. We use Business Process
Model and Notation 2.0 (BPMN 2.0) a standard. BPMN 2.0
because it has become the global de facto standard for business
process modeling, analysis and design of process-aware
information systems [16]. By these models, we contribute to
the academic literature by providing understandable MMT
processes needed by not only business analysts to create and
improve the MMT processes, but also to the technical
developers responsible for implementing MMT processes.
Consequently, business managers will have a clear
understanding to better monitor and manage MMT.
Figure 1: Vertical Abstraction Process Modelling [15]
2. LITERATURE REVIEW
2.1. Definition of Terms
There are several terms that are peculiar to Mobile Money
Transfer and are used in this study. We provide a vivid
definition of these terms as used in the study.
Mobile Network Operator (MNO), is a telecommunication
company/entity that provides wireless communications
services for mobile phone subscribers.
"Mobile Money Transfer (MMT)" refers payment services
operated by Mobile Network Operators under financial
regulation. The service allows customers to deposit/withdraw
electronic/digital money, make transfers, top up mobile airtime
or pay bills performed from or via a mobile device.
"Mobile Money Transfer Agent (MMTA)" refers to any
registered business entity that is authorized by a particular
mobile network operator as an intermediary to engage in the
sale and distribution of Mobile Money products/services such
as accept Mobile Money payments for goods & services
offered.
"Mobile Money Wallet" refers to electronic or digital Money
on a mobile phone used as a transactional account for mobile
money services. Mobile Money Wallets are opened and owned
by the consented MNO Partner Banks and opened to the
general public who are subjected to and agrees to the financial
requirements operated by the instituted Bank.
"Mobile Money Wallet holder" refers to the customer in whose
name the Mobile Money Wallet is registered with a particular
MNO. All Mobile Money Wallet holders are committed to the
financial regulations as enshrined by the MNO/MNO partner
banks.
Financial regulations on mobile money transfers include, but
not limited to, transactional and daily limits. Each wallet
holders have a specific daily transactional limit depending on
the package of registration, even wallet, and non-wallet
holders. Holders can increase or reduce these limits. Again,
there are limits to the total amount to be held as account balance
for all holders, not exceeding a certain amount. Holders can
access the available wallets at any time from or via a mobile
device and or the Internet via web browsers.
2.2. Mobile Money Transfer Research
[1] studied the acceptance of mobile-money (m-money) among
people who are. below the poverty line in India, using the
technology acceptance model (TAM). The study found that
mobile money service is a major initiative that can enable
Indians in particular and developing countries in general, to
access low-cost and speedy money transfer through mobile
phones to achieve financial inclusion. Using a survey of
about1,500+ bottom of the socio‐economic pyramid local and
overseas migrant workers in Bangladesh, Pakistan, India, Sri
Lanka, the Philippines and Thailand, [17], explored the extent
to which workers in emerging Asia are aware of and are likely
to use mobile money transfer as a means of money remittance
to home family members. They found that less than a quarter
of the workers were aware of the service in India, Pakistan and
Sri Lanka. However, the awareness level of the service was
high in the Philippines and Thailand. Meanwhile, workers who
were aware of the services tended to enjoy higher standards of
living, in terms of income/education and ownership of mobile
phones/bank accounts.
[9] used the sixth round of the Ghana Living Standards Survey
(GLSS 6) and robust methods to examine the extent of access
to mobile phones and wellbeing of non-farm enterprise
households in Ghana. They showed that having access to

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mobile phone improves the chances of not being poor and that
the access to mobile phones constructs related significantly and
positively to the revenues of nonfarm enterprises. This is
suggestive of the fact that having mobile phones has a higher
chance of expediting the business activities of nonfarm
enterprises and thus correlating to higher sales revenues.
Interesting, [9] found that the effect of access to mobile phones
on non-farm household wellbeing seemed to be the case only
with rural nonfarm enterprise households and not with urban
nonfarm enterprise households. However, having access to
mobile phones improves the sales revenue of nonfarm
enterprises in both rural and urban areas.
[10] analyzed women in entrepreneurship adoption of MMT in
Kenya and found that women's membership to what is called
“table banking groups” would easily influence the awareness
and consequently increase the adoption of mobile payments
services. Also, they showed that the women's control of their
enterprise finances and decision making significantly impacted
on their awareness and usage of mobile money technologies.
Meanwhile, the women were less likely to adopt mobile
banking technology they perceived to be out of reach for their
communities and those that have hidden charges irrespective of
having knowledge of their existence.
MMT Infrastructure deficiencies and adoption in Sub-Saharan
Africa was studied by [11] using survey data from 11 countries
in Sub-Saharan Africa in 2011. After controlling for a number
of individual and household characteristics including
disposable income, it was found that the adoption of mobile
phones is higher in areas with better physical infrastructure. As
a matter of fact, users from poor infrastructure areas were more
likely to rely on mobile phones to make financial transactions.
Furthermore, accessing emails, social media, VOIP services
(Skype), and general Internet surfing via mobile phones were
not dependent on the physical infrastructure levels. Their
conclusion was that mobile phones improve the livelihood of
people residing in remote areas for financial inclusion.
[12] examined the impact of MMT on household welfare using
panel data of 846 rural households in Uganda. They used
household fixed effects, instrumental variable and propensity
score matching methods, and found a significant and positive
effect of mobile money access on household welfare, measured
by real per capita consumption. They proved that the
mechanism of the impact was the facilitation of remittances.
Specifically, user households were more likely to receive
remittances more frequently, with a total value significantly
higher than those of non-user households. They attributed this
impact to the marginal reduction in the transaction, transport,
and time costs associated with mobile phone-based financial
transactions.
[13] in the paper “Poor people’s money: The politics of mobile
money in Mexico and Kenya” used interviews and secondary
sources and found that the actors and the politics surrounding
diffusion of MMT are key success factors. Specifically, the
highly regulated and already established financial sector may
seek to protect itself from emerging competition from the
telecommunication sector via mobile payments regulation.
Suárez cited an example in Mexico where the bank-led
regulatory model of mobile payments has limited the diffusion
of the MMT service to the unbanked population as a result of
stiff regulatory capture by the banking industry. In contrast, the
Mobile Network Operator (MNO)-led model of Kenya has
resulted in much higher rates of diffusion and reflects the extent
to which the telecommunication sector has played a decisive
role in designing the regulatory regime and the limiting the
impact of financial industry.
Comparing the service in Kenya to that in Nigeria, [14]
contributed to MMT research by studying the mechanisms that
explain the differences in adoption between these countries.
Theoretically, they illustrated on a combination of a multilevel
perspective of sociotechnical transformation (MLP) and
innovation ecosystems and identified the idiosyncratic
elements that play a role in the development of a critical mass
of user and agent networks necessary for the survival of MMT.
They argued that while network externalities contributed to a
greater adoption of MMT in Kenya, the different institutional
and industrial conditions in Nigeria suggested that network
externalities were taking much more time to be generated and
that achieving similar adoption rates as in Kenya might be a
matter of time.
2.3. Process Models
To better explain the context of mobile money transfer, we use
process models by way of diagrams to depict the value creation
stages of mobile money transfer. Process models are used for
the following reasons: To better describe what actually happens
during MMT; To add to existing literature and make readers
act as an external observer in order to critique the MMT
processes and determines any improvements that must be made
to make it perform more effectively or efficiently. There
several classifications of process models, meanwhile we follow
the activity-oriented model. That is to say, the models are
solely related to the set of MMT activities conducted by
stakeholders pertaining to the service definition and that we
focus on MMT set of ordered steps to serve customers. The
models are intended to illustrate the interaction between MMT
customers and MNOs from our perspective. We depict MMT
customers experience on one part and that of MNOs, and how
they interact to create MMT value.
Process 1: Registration for MMT Wallet
All customers who want to use MMT services will have to go
through a formal registration process. A person can only apply
to become Mobile Money Wallet holder if he/she is an active
MNO subscriber. Foreigners are required to provide evidence
of residence by their resident permit. Minors such as persons
who are below the age of 18 can not become Mobile Money
Wallet holders. Meanwhile, A person above the age of 18 can
register a minor as a mobile money wallet holder to be held in
trust for the said minor.

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Figure 2: MMT Registration Process
As shown in figure 2, the MMT registration process begins
with the customer. The customer, first of all, prepares the
registration documents. These documents are country-specific,
that is to say, they vary from one country to the other.
Meanwhile, any form of valid photo identification card is
accepted, including but not limited to, Voter ID, Drivers’
License, Passport, National ID/ National Health Insurance
SSNIT ID. The next step is customer visits the nearest Mobile
Money Authorized Merchant and declares registration
intention, the Merchant inspects valid form of identification.
He then captures customer personal details and provides a
Mobile Money SIM card (if he/she is not an existing customer,
see figure 3). The customer then goes through the registration
process as identified by the information system. It is important
to state that the customer must be physically present with no
proxy registration accepted, except otherwise authenticated.
All users select and enter a confidential Personal Identification
Number (PIN) during registration. This PIN is required for all
MMT transactions and services in such a manner that no
transaction could be effected without entering and validating
the PIN. The user has a maximum of three (3) attempts to
authenticate the right PIN. If the user enters the wrong PIN
after the third attempt, the Mobile Money wallet is
automatically disabled for proof of ownership before
subsequent use.
New Customer (Non-Existing) Registration Process
New customer, as defined here, are those customers who are
entirely new to the current MNO of registration. They are
customers who have moved from other MNOs and are looking
for new MMT solutions such as price, quality or better service
because they no longer have a need for that MNO. They are
usually frustrated and have great indifference on the part of
MMT service provider, perhaps as a result of attitudinal and/or
emotional dissatisfaction, time inflexibility, information
asymmetry, or the fact that their expectations are not met. From
figure 2, if the customer is not an existing customer, he/she will
have to register for a new SIM card. The process for such is
shown by the process model shown in figure 3.
Mobile money transfer has grown over the years from simple
person to person (P2P) money transfer to such services as
Cash-in/Cash-out where mobile money service is used as a
means of saving/depositing and withdrawing just like the
regular bank account. To send money via Mobile Money
Transfer, the customer will have to first load his/her mobile
money wallet. This process is shown by the process model
shown in figure 4. The customer would have to go to the nearest
Mobile Money Authorized Merchant, he/she hands over cash
to Merchant, the merchant enters his/her mobile number,
repeats the number, the amount, and the Merchant’s user ID
and Mobile Money PIN. The Mobile Network Operator will
debit the Merchant’s Mobile Money Wallet and credit the
customer. The customer immediately receives a confirmation
message of the successful loading.
With enough mobile money wallet, a customer can begin any
transaction including transferring money to another person via
the Mobile Money Wallet (P2P). The process model for such a
transaction is shown in figure 5.
As shown in figure 4, the customer will have to make sure
he/she has sufficient money in his/her Mobile Money Wallet.
Go to “Mobile Money” menu, select “Transfer Money” and
“Mobile User.” He/she enters and repeat receiver’s mobile
number, amount, reference, confirm details and enter Mobile
Money PIN. If the recipient is not a mobile money subscriber,
the option is to 2 select “Transfer Money” and “Non-Mobile
User.” The customer enters the amount, secret code, repeat
secret code, confirm details and enter Mobile Money PIN.
He/she will receive via SMS a token (a 12-digit serial number).
He/she communicates the token and secret code to the receiver
to cash out the money from a Mobile Money Authorized
Merchant or via ATM, whose process is depicted by the
process model shown in figure 6.
Mobile Money Transfer can also be used for bill payment
which serves as a means of paying utility and other bills. The
process model shown in figure 7 below shows this service.
Figure 3: New Customer Registration Process

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Figure 4: Loading Mobile Money Wallet
Figure 5: Transfer Mobile Money via P2P
Figure 6: ATM Cash-out Process
Figure 7: MMT Bill Payment Process
Innovation and expansion characteristic of Mobile Money
Transfer in Africa, and for that matter Ghana, is so great that
recent services include what is called “KwikAdvance”.
According to MTNGhana, (2015) this service provides salary
advance for employees through their Mobile Money wallets to
meet emergencies such as school fees, utility bills, medical
bills as well as any other financial obligations anytime during
the month when their regular salary is not due. Others include
airtime top-up, Merchant Payment, Bulk Payment, among
others. Many surveys have been done over the years to assess
the usefulness and acceptance of the service by all
stakeholders. However, there is no formal assessment method
for the service along the customer journey. Users of mobile
money transfer go through several stages and information
requirements to utilize the service. An assessment of the stages
and the information requirements are unclear.
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