LAUSR

ABSTRACT Since the application of mobile technology for financial services can contribute to the economic development of developing countries, it is critical to examine the inhibitors to using mobile money service in countries like India, which have an exceptionally low uptake of this service. Mobile money service enables the customer to carry out financial transactions over a mobile phone without requiring them to own a bank account. By adopting a market separation perspective, this theory-driven, exploratory study proposes and tests a rare event logistic regression model for using mobile money services in India. The analysis of 45,036 responses shows that the ownership of a SIM card (temporal separation), income and ownership of a bank account (financial separations), awareness of mobile money services (information separation), age and gender (social separations), and location of residence (spatial separation) significantly inhibit the use of mobile money services. Implications are discussed at the end.