Factors Affecting the Use of Mobile Money Services (MMSs) for Financial Transactions among Rural Residents in Igunga District, Tanzania

Abstract

It is almost two decades since the Government of Tanzania established the National Financial Inclusion Framework (NFIF). Guided by the principles of digital financial services, financial consumer protection, and financial education, this significant socio-economic initiative was expected to promote the use of Mobile Money Services (MMSs) for financial transactions. However, the anticipated level of adoption has not been fully realised. This study employs the Technology Acceptance Model (TAM) and the Unified Theory of Acceptance and Use of Technology (UTAUT) to explain the acceptance and use of mobile money services. These theoretical perspectives highlight the technological and social factors that influence rural residents' adoption of digital financial services, emphasizing perceived usefulness and perceived ease of use as key determinants of behavioural intention. A mixed-methods ethnographic design was employed to examine factors affecting the use of Mobile Money Services (MMSs) for financial transactions among rural residents. A sample of 360 household heads was surveyed using structured questionnaires, complemented by qualitative interviews, focus group discussions, and observation. Quantitative data were analysed using descriptive statistics and binary logistic regression in IBM SPSS Statistics Version 27, while qualitative data were analysed through content analysis supported by NVivo 12. The findings revealed that the use of Mobile Money Services was significantly influenced by demographic characteristics (gender, age, education, and income), awareness and digital literacy, perceived trust in mobile technology, accessibility of mobile money agents and network coverage, and perceived transaction costs. The study recommends that the Government, in collaboration with Mobile Network Operators (MNOs), strengthen digital literacy programmes, enhance security measures, improve transparency in fee structures, expand agent networks, and improve network reliability to promote wider adoption of mobile money services among rural communities.