Research by the Consultative Group to Assist the Poor (CGAP), United Nations Foundation (UN Foundation), and The Vodafone Group Foundation (VGF) indicates that m-banking can be up to a third cheaper for customers than the current banking alternatives, and users value the service for its security and easy use.

However, this study shows more needs to be done to address negative perceptions about the cost and effectiveness of mobile phones and m-banking.

The study is based on surveys of 515 low-income South Africans, including 300 who do not use m-banking and 215 customers of Wizzit - a 'virtual bank' that has no branches of its own, but instead offers a bank account which is accessible via mobile phone and debit card. The company targets the 16 million South Africans (48% of adults) who do not bank or have difficulty accessing formal banking services.

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