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Factors influencing consumers’ adoption of mobile financial services in Tanzania

Author

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  • Amina Abdinoor
  • Ulingeta O.L. Mbamba

Abstract

This study aimed at assessing consumers’ adoption of mobile financial services in Tanzania using Technology Acceptance Model. The study had the following objectives, to assess the individual awareness of mobile financial services; perceived usefulness; perceived benefits; and costs effects on adoption of mobile financial services. Random sampling technique was employed to select the sample for data collection. Two hundred participants were selected randomly from Dar es Salaam region particularly Kinondoni District. The sample included the users and non-users of mobile financial services. The study used primary data and regression model. The findings of this study show that mobile financial service adoption is positively related to individual awareness, perceived usefulness and perceived benefit but it is negative related to cost effects. Nevertheless, the study showed that demographic characteristics of respondents (sex, age and income level) are among the factors moderating adoption of mobile financial services. From the findings, this study highlights recommendation that service providers need to play a leading role in influencing individual awareness, perceived usefulness, and perceived benefit of mobile banking. However, cost effect has been found as one of the barrier to the intention to adopt mobile financial services in Tanzania. Service providers should consider affordability and availability of the financial services for the low-income segment in the society. These results can be extended to any developing country.

Suggested Citation

  • Amina Abdinoor & Ulingeta O.L. Mbamba, 2017. "Factors influencing consumers’ adoption of mobile financial services in Tanzania," Cogent Business & Management, Taylor & Francis Journals, vol. 4(1), pages 1392273-139, January.
    • Handle: RePEc:taf:oabmxx:v:4:y:2017:i:1:p:1392273
    DOI: 10.1080/23311975.2017.1392273
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    References listed on IDEAS

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    Cited by:

    1. Md. Rahat Khan & Sudhir Rana & Md. Imran Hosen, 2022. "Impact of Trustworthiness on the Usage of M-banking Apps: A Study on Bangladeshi Consumers," Business Perspectives and Research, , vol. 10(2), pages 234-250, May.
    2. Ehsan, Zaeem-Al & Musleh, Naomi & Gomes, Veronica & Ahmed, Wasiq & Ferdous, Md Dinash, 2019. "The usage of mobile financial services in Bangladesh," MPRA Paper 109974, University Library of Munich, Germany.
    3. Michael Kodom, 2019. "Financial Inclusion via Mobile Money Services in Ghana: Drivers and the Role of Regulation," Miscellaneous Publications 355516, University of Ghana, Institute of Statistical Social & Economic Research (ISSER).
    4. Abraham Charles Nathanael & Magwana Ibrahim Ngollo, 2025. "Exploring Fintech, financial literacy, and stock market participants nexus in Dar es Salaam Stock Exchange, Tanzania," Asian Management and Business Review, Master of Management, Department of Management, Faculty of Business and Economics Universitas Islam Indonesia, vol. 5(2), pages 383-401.
    5. Richard Chamboko, 2024. "Digital financial services adoption: a retrospective time-to-event analysis approach," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 10(1), pages 1-27, December.
    6. Ayman N. Alkhaldi & Qasem M. Kharma, 2019. "Customer’s Intention to Adopt Mobile Banking Services: The Moderating Influence of Demographic Factors," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 16(05), pages 1-26, August.
    7. Christian Lambert Nguena, 2019. "Working Paper 323- Mobile Financial and Banking Services Development in Africa," Working Paper Series 2449, African Development Bank.
    8. Jadil, Yassine & Rana, Nripendra P. & Dwivedi, Yogesh K., 2021. "A meta-analysis of the UTAUT model in the mobile banking literature: The moderating role of sample size and culture," Journal of Business Research, Elsevier, vol. 132(C), pages 354-372.
    9. repec:bcp:journl:v:8:y:2024:i:1:p:1520-1538 is not listed on IDEAS
    10. repec:jaf:journl:v:16:y:2025:i:1:n:888 is not listed on IDEAS
    11. Wilberforce Witts & Severine Kessy, 2023. "Demographics as Moderator Between Perceived Easy of Use, Individual Awareness and Adoption of Mobile Financial Services," International Journal of Business and Management, Canadian Center of Science and Education, vol. 16(12), pages 1-53, February.
    12. Kodom, Michael, 2019. "Financial Inclusion Via Mobile Money Services in Ghana: Drivers and the Role of Regulation," Miscellaneous Publications 358817, University of Ghana, Institute of Statistical Social & Economic Research (ISSER).
    13. Mohammad Tahir Zainuddin & Wan Nur Fazni Wan Mohamad Nazarie & Ratna Roostika & Nofrizal Nofrizal, 2026. "Understanding Gen Z Consumers’ Behaviour in Digital Banking Adoption: An Empirical Study," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 10(5), pages 189-203, May.
    14. Gbêtondji Melaine Armel Nonvide, 2025. "Mobile Money: An Innovative Solution to Reduce Households’ Vulnerability to Economic Shocks," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(2), pages 9466-9491, June.
    15. Christian-Lambert Nguena, 2019. "On financial innovation in developing countries: The determinants of mobile banking and financial development in Africa," Journal of Innovation Economics, De Boeck Université, vol. 0(2), pages 69-94.
    16. DRAMA Bédi Guy Hervé, 2022. "Full Modified Ordinary Least Square Analysis of the Relationship between New Technologies of Information, Financial Development and Growth in WAEMU Zone," International Journal of Economics and Financial Research, Academic Research Publishing Group, vol. 8(2), pages 39-49, 06-2022.
    17. Gbêtondji Melaine Armel Nonvide & Alastaire Sèna Alinsato, 2023. "Who uses mobile money, and what factors affect its adoption process? Evidence from smallholder households in Cote d’Ivoire," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 28(1), pages 117-127, March.

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