ACCEPTANCE OF MOBILE PHONE PAYMENTS SYSTEMS IN TANZANIA: TECHNOLOGY ACCEPTANCE MODEL APPROACH

Abstract

This paper presents a quantitative study on the users’ acceptance of mobile phone payment systems (MPPS). Basing on the technology acceptance model (TAM), the study specifically evaluated the influence of ease of use; perceived usefulness; service quality; and information systems qualities of payment systems in the adoption and use of MPPS. A questionnaire survey was carried with 300 users out of which 260 were clean for data analysis using SPSS version 21. To supplement the survey, the study deployed  interviews. The regression results indicate significant influence of the regressed variables with slightly low values of the adjusted R-square. The findings on information quality and perceived usefulness had lesser influence (beta values below average) whereas ease of use, and services quality were positively rated factors to accepting the systems.  Several other factors behind acceptance were also identified in the interview, including premium pricing, level of understanding, and perceived risks. The findings extend knowledge on the application of TAM to mobile payments in a developing country such as Tanzania. They provide awareness on contributory factors to accepting the technology to Tanzania Communication Regulatory Authority (TCRA) and country’s central bank, Bank of Tanzania (BoT) in their managing and controlling processes. They also provided practitioners with knowledge on the challenges and ways of tapping into the advantages of ICT. The findings were limited to four regions in Tanzania.