Mobile payment systems have emerged as a significant technological advancement in Tanzania, particularly in urban areas where traditional banking services are less accessible. This study examines how these systems influence financial stability and savings patterns among Tanzanian consumers. A comparative analysis was conducted using secondary data from survey responses collected through an online questionnaire targeting both urban and rural areas. Data were analysed to identify patterns and differences in savings rates associated with mobile payment systems usage. Mobile payment system users reported a significant increase in saving proportions, averaging around 20% of their monthly income, compared to non-users who saved only about 5%. This trend was more pronounced among younger adults (aged 18-35) and those living in urban areas. The findings suggest that mobile payment systems can be effective tools for enhancing financial stability and encouraging savings habits, especially among younger demographics and urban populations. However, further research is needed to explore the long-term effects on broader socioeconomic outcomes. Future studies should investigate the sustainability of these savings patterns over time and consider how policies might support or hinder the adoption of mobile payment systems in achieving financial inclusion goals. Mobile Payment Systems, Financial Stability, Savings Rates, Tanzania, Comparative Analysis
Mbiiza et al. (Mon,) studied this question.