Willingness to pay for insurance against mobile money fraud: evidence from Ghana
| Date | 05 April 2024 |
| Pages | 917-931 |
| DOI | https://doi.org/10.1108/JMLC-10-2023-0167 |
| Published date | 05 April 2024 |
| Author | Rebecca Nana Yaa Ayifah,Adriana Apawo Adda |
Willingness to pay for insurance
against mobile money fraud:
evidence from Ghana
Rebecca Nana Yaa Ayifah
Department of Economics, University of Ghana, Accra, Ghana, and
Adriana Apawo Adda
Department of Economics,
Ghana Institute of Management and Public Administration, Accra, Ghana
Abstract
Purpose –The rapid growth of the mobile money industry has beenmatched by a rise in mobile money
fraud. The technology required to apprehend perpetrators of such fraud is nonexistent in most developing
countries.Hence, the need for individuals to be willingto pay for insurance against such fraudsis crucial. This
paperaims to examine individuals’willingnessto pay for insuranceagainst mobile money fraudin Ghana.
Design/methodology/approach –The paper uses nationally representative data collected from 4,266 adults
(persons 18years and above) in Ghana. Individuals’willingness to pay premiums for protection against mobile
money fraud was elicited by a single-bound dichotomous choice and open-ended con tingent valuation designs.
Findings –On average, 24.34% of Ghanaians are willing to pay premiums for insurance against mobile
money frauds, with more men (26.37%) being willing than women (22.56%). Similarly, the average
monthly premium that men are willing to pay for protection against mobile money fraud is GH¢32.16
(US$8.16), while that of women is GH¢22.5 (US$5.62). Furthermore, the results show that years of
schooling, income, previous fraud experience, and using the accounts for saving are all positively
associated with willingness to pay. However, using other networks apart from MTN has a negative
association with willingness to pay.
Originality/value –To the best of our knowledge, this is the first study that examines willingnessto pay
for insurance against mobile money fraud. Thus, this is the first that estimatequantitatively how much
mobile accountholders will pay as premiums for insurance against mobile money fraud.
Keywords Mobile money, Willingness to pay, Fraud, Insurance, Ghana
Paper type Research paper
1. Introduction
In most developing countries, where there are disproportionately high numbers of people
who do not have bank accounts, the most practical and user-friendly alternative for
conducting financial transactionsismobile money (Cook and McKay, 2015;Espinosa-Vega
et al., 2020). Mobile money, which initially started as a means of transferring money
among peers, has evolved to include other new and enhanced services such as payment of
bills, savings, borrowing, and microcredit. The emergence of the COVID-19 pandemic
“leapfrogged”the expansion of mobile money as it facilitated financial transactions with
JEL classification –D12, D14, G21
Conflict of interest: All authors declare that they have no affiliations with or involvement in any
organization or entity with any financial interest or non-financial interest in the subject matter or
materials discussed in this manuscript.
Evidence from
Ghana
917
Journalof Money Laundering
Control
Vol.27 No. 5, 2024
pp. 917-931
© Emerald Publishing Limited
1368-5201
DOI 10.1108/JMLC-10-2023-0167
The current issue and full text archive of this journal is available on Emerald Insight at:
https://www.emerald.com/insight/1368-5201.htm
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