THE MARKET POTENTIAL FOR ELECTRONIC PAYMENT APPLICATIONS IN GHANA AND UGANDA (CASE COMPANY–MAVIANCE GMBH) (MANAGEMENT PROJECT TOPICS AND MATERIALS)
ABSTRACT
Nowadays, electronic payment solutions are widespread all around the world. Besides, their popularity is rapidly growing in emerging markets bringing numerous business opportunities to the international companies specializing in electronic payment systems.
The aim of this thesis is to create a marketing strategy for the penetration of Ghana and Uganda with Smobilpay, which is an electronic payment application of Maviance GmbH. The research is done with the help of an analysis of the business environment for electronic payment solutions in Ghana and Uganda.
The marketing strategy includes a description of the appropriate pricing approach as well as distribution and promotion channels for Smobilpay. According to the research and interviews, recommendations for market penetration of Ghana are given.
1 INTRODUCTION
1.1 Background
Payment systems have demonstrated notable changes in the past twenty years. In the last century, the payments among the banks were carried out by exchanging paper payment instructions, which became known as the “paper-based payment system” (Nakajima 2012). However, a significantly increased number of payments have required great paper work and, consequently, enormous amounts of time. Consequently, electronic payment systems appeared to replace paper-based ones.
The development of e-commerce has further digitized the payment procedure (Ramezani 2008). The popularity of electronic payment services is rapidly growing, and there is no need for physical interaction between the buyer and the seller. The ultimate goal of each electronic service is to satisfy consumers’ needs and desires, maximizing at the same time the company’s benefit.
Electronic payment services are widespread especially in the developed markets. However, during the last decade, electronic payment technologies have actively penetrated emerging countries and gradually gained popularity.
1.2 Aim of the study
The aim of the study is to investigate the market potential for electronic payment technologies in two African countries, Ghana and Uganda. In this paper, electronic payment is defined as a transfer of funds over an electronicnetwork in return for a good or service (Business dictionary 2011).
The understanding of electronic payment technologies is accomplished through the case of Smobilpay™, a smart mobile payment solution. The research is conducted for Maviance GmbH in Leipzig, Germany. The study provides Maviance GmbH with an overview of the political, economic, technological and environmental situation for electronic payment solutions in Ghana and Uganda. Moreover, it provides with a marketing strategy for the market penetration of Ghana.
