The role of mobile money in facilitating cross border trade and financial transactions among smalland medium enterprises: a case study Gulu City, Northern Uganda
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Date
2026-05-15
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Uganda Christian University
Abstract
The research explores the effectiveness of mobile money in promoting cross-border trade and financial interactions among the Small and Medium Enterprises (SMEs) operating in Gulu City in Northern Uganda. Although mobile money has facilitated domestic financial interactions to a great extent, little is known about its efficiency in promoting international business in new regional hubs. It was intended to establish the effect of mobile money on international business activities as well as its challenges in doing so. The study adopted cross-sectional descriptive and analytical approach whereby 50 SMEs owners/managers involved in cross-border trade were identified and interviewed using semistructured questionnaires. The data was analyzed using descriptive statistics as well as correlation and regression methods to determine the relationship between mobile money and cross-border trade. It was established that mobile money contributes to the facilitation of cross-border trade through convenient payments, security and reduced use of cash. However, the full benefits of mobile money services are inhibited by high fees for cross-border transactions, lack of adequate digital skills by the service providers, unreliable internet connectivity in border areas as well as inconsistent regulations in different nations.Recommendations from this research indicate that both the government and financial regulators should align regional digital payments regulations so as to make transactions cheaper and easier. Additionally, there is a need for cooperation between financial firms and mobile operators in order to create customized services that raise transaction limits and foster consumer confidence. In regard to owners of small and medium-sized enterprises, the recommendation is to fully adopt digital bookkeeping practices.
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Undergraduate