The rate of penetration of the mobile phone has exceeded any other technology, particularly in the developing world. This has seen the introduction of mobile based financial services to address financial exclusion. However, there is limited research on the usage of these mobile financial services by the poor. This paper seeks therefore to explore how mobile banking services are beingused by the urban poor in five townships in Johannesburg, South Africa. It seeks to explore the social, technological and economic factors that have enhanced or inhibited use of mobile banking initiatives. In-depth interviews with 15 users of a mobile banking initiative and focus groups of non-users were conducted.

The study applied the Capabilities Approach by Amartya Sen to analyse the contexts that can affect access and use of mobile banking services. Analysis of the data shows that mobile phone uptake does not directly translate to mobile banking uptake and usage. The study finds there are contextual influences of usage specifically the social, technological, economic and banking environment that the usage decision is made in. Usage is therefore shaped by who the users are, their family dynamics and their economic status, who they associate with, the banking alternatives available and perceptions of risk both on an individual and societal level.