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Abstract
Mobile money (MM) services can contribute to welfare gains in smallholder farm households.
Previous research showed that one important pathway is through higher remittances received
from relatives and friends. Here, the role of other impact pathways is examined, especially
focusing on agricultural marketing and off-farm economic activities. The analysis builds on
panel data from smallholder coffee farmers in Uganda. Regression models show that the
adoption of MM technology has contributed to higher household incomes and consumption
levels. Off-farm income gains are identified to be an important pathway, also beyond
remittances. Typical off-farm income sources are small businesses in trade, transport, and
handicrafts, which benefit from novel savings and money transfer opportunities through MM.
In terms of agricultural marketing, MM users sell a larger proportion of their coffee as shelled
beans to buyers in high-value markets, instead of selling to local traders immediately after
harvest. MM services help reduce cash constraints and facilitate transactions with buyers from
outside local regions. In conclusion, MM can contribute to rural development through various
important pathways. Analysis of adoption patterns suggests that MM services are socially
inclusive.