Can mobile money adoption induce microenterprises to formalise? Evidence from a field experiment in Burkina Faso

Research Note
Published on 17 February 2023


This research investigates whether the adoption of mobile money can induce microenterprises to formalise. We use as setting Burkina Faso and exploit survey data on informal business and randomised incentives and information. Our major findings indicate that mobile money adoption by informal firms increases their transition to the formal sector. Considering our treatments, we show that their impact depends on whether the recipient of the programme indicated being willing to formalise or adopted the merchant account at baseline. Therefore, our findings reveal that policies that promote formalisation should be carefully designed to improve their efficacy.


Serge Stéphane Ky

Université de Ouahigouya

Clovis Rugemintwari

Université de Limoges