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September 5, 2025

Factors Influencing Mobile Money Adoption in Tanzania

Key Points

Mobile money adoption is significantly influenced by trust, affordability, and integration with financial services.
Analysis reveals strong positive coefficients for critical factors like ease of use (0.623) and performance expectancy (0.627).
Using Semi-Structural Equation Modeling, the study analyzed data from an online survey of 384 respondents.
These findings emphasize the necessity for MNOs to enhance security and create a supportive regulatory environment.

Abstract

Financial inclusion is being promoted in most economies as it fosters economicdevelopment. Traditionally, banks were used to promote the agenda of financialinclusion until about two decades ago when Mobile Network Operators (MNOs)introduced mobile money services. Since then, there has been a rise in the numberof individuals using mobile money services. Due to this, studies have been carriedout to investigate the factors responsible for adopting mobile money globally.Despite thorough research in this area, aspects such as affordability andintegration of mobile money with other financial services and promotions havenot been thoroughly studied. Therefore, with its unique focus on these unexplorednew aspects, this study was carried out to fill this gap using Tanzania as a casestudy. Along with the common factors such as trust, performance, and ease ofuse, the study used primary data collected through an online survey from 384respondents. It was anchored on the Technology Acceptance Model (TAM) andemployed Semi-Structural Equation Modeling (SEM) as the analysis method. Thestudy found that perceived risk has a negative but statistically insignificantinfluence on adopting mobile money, with a coefficient of -0.181 and a p-valueof 0.078. Results also indicate that perceived trust, performance expectancy, easeof use, social influence, affordability, integration of mobile money with otherfinancial services, and promotion have a positive and statistically significantinfluence on mobile money adoption, with coefficients of 0.694, 0.627, 0.623,0.605, 0.101, 0.083, and 0.438 respectively, and a p-value of less than 0.005.These findings highlight the need for MNOs to build trust through improvedsecurity measures, offer affordable services, integrate mobile money with otherfinancial platforms, and promote their services to increase adoption.Policymakers are encouraged to create regulatory frameworks that promoteconsumer trust, ensuring a safe and reliable mobile money ecosystem.

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