Malawi remains a cash-oriented society. Both individuals and businesses operate primarily in cash, and the financial services available in the market remain limited. Of the small percentage of the population who can access financial services, most do so via local or informal financial services, including sending money, paying and receiving salaries, savings, and credit. The findings of our report showed that about 3% of those who had sent money in the last three months had done so via a bank transfer or direct deposit to a bank account.
Similarly, a mere 4% of those who received money did so via a bank transfer. Salaries are paid almost in cash or through a bank account: About 76% of household decision-makers reported receiving their remuneration in cash at work or elsewhere. Only 1.3% had made utility payments (water or electricity) at a bank; in contrast, more than 80% of household decision-makers who paid bills in the past three months report paying their dues at the provider's office.
As such, there is an opportunity for mobile money to not only increase access to formal financial services, but also to resolve security risks around operating in cash.
For more, download the full Mobile Money In Malawi report.
