Profitability analysis of mobile payment companies in Ghana: A comparative study in the pre-pandemic period

Abstract

The application of emerging payment methods such as mobile payment (m-payment) was not common in Ghana until recently when these emerged through major service providers who have penetrated Ghanaian markets. These major providers have created many opportunities and innovations for small entrepreneurs in Ghana who are now discovering business opportunities in m-payments. This study uses secondary data from the global consolidated financial statements to compare the profitability, investor confidence, and efficiency of operation of the four m-payment providers operating in Ghana. The one–sample T-Test, One-way ANOVA, reliability test, parametric and nonparametric correlations tests were performed on the financial data. The study revealed that MTN (a mobile payment company in Africa) portrays better profitability than the other three competitors do within the 10 years of measurement. Cronbach's Alpha indicates positive internal reliability. The study recommends that the management of Vodaphone, Airtel and Tigo must engage in stakeholder consultations to unearth the reasons behind low profitability and performance.

Keywords: Financial inclusion, mobile payment, pre-pandemic period, profitability;