Abstract

This study explores the impact of mobile money services on the financial performance of Small and Medium Enterprises (SMEs) in Douala, Cameroon. Mobile money has emerged as a key financial innovation, particularly in developing economies, offering a convenient and accessible platform for financial transactions. In Douala, where many SMEs face challenges related to access to traditional banking services, mobile money presents an alternative that can enhance business operations, increase revenue streams, and improve overall financial management. This research assesses how the adoption of mobile money influences the financial performance of SMEs in Douala.

The study employs a mixed-methods approach, integrating both quantitative and qualitative data. Quantitative data is sourced from financial records of SMEs that have adopted mobile money services, while qualitative insights are gathered through interviews and surveys with SME owners, mobile money agents, and financial experts. The study examines key indicators such as revenue growth, cost reduction, and transaction efficiency to measure the financial performance of SMEs.

Findings from the study indicate that the use of mobile money services has had a positive impact on the financial performance of many SMEs in Douala. SMEs that have integrated mobile money into their operations report increased revenue due to easier payment processes, wider customer reach, and enhanced liquidity management. Additionally, mobile money has facilitated quicker and more secure transactions, reducing the risks associated with cash handling and enabling faster access to working capital.

However, the study also identifies challenges in the adoption of mobile money, including issues related to network reliability, transaction fees, and the digital literacy of business owners. These challenges sometimes limit the full potential of mobile money in improving financial performance.

The study concludes that mobile money is a transformative tool for SMEs in Douala, contributing to improved financial performance through enhanced transaction efficiency and broader financial inclusion. To maximize the benefits of mobile money, the study recommends that mobile money service providers improve network infrastructure and reduce transaction costs, while government policies should focus on promoting financial literacy among SME owners.

Keywords: Mobile money, SMEs, financial performance, Douala, Cameroon, financial inclusion, business growth, transaction efficiency.