Abstract
This article presents a study of factors affecting the usage of mobile money services (MMS). Thirty-three User technology adoption variables relating to factors that affect MMS usage were identified, and Factor analysis was used to extract the key factors using principal component analysis. With set cut-off values, eight factors emerged with values of Communalities (>0.5), Eigenvalues (>1), Percent of Cumulative Variance Explained (>60 per cent), and Factor Loadings (>0.4) with a total variance of 75.179 %. Multiple regression was conducted to see if the independent variables predicted the level of usage of MMS. The validity of the items used in this study was established by using confirmatory factor analysis. Results showed that the adoption of mobile money service is influenced by Perceived ease of use, Perceived usefulness, Perceived cost, and Perceived network quality. The perceived cost was found to have a negative influence on financial service adoption.
Highlights
The developments in mobile technologies have had tremendous effects on the physical products side and the nature of services provided in the world today. Diniz et al (2011) stated that mobile technology, when used and applied as a payment channel, create an opportunity for financial inclusion amongst the unbanked population while on the supply side creates opportunities for financial institutions to deliver a wide range of services at a minimum, mostly to people living in remote areas (Diniz et al, 2011; Aker and Mbiti, 2010).GSMA (2010) defines Mobile Money as a "service in which the mobile phone is used to access financial services"
The results suggest that mobile money is a key driver of the increase in account ownership
According to Malhotra (2009), Factor analysis operates on the notion that measurable and observable variables can be reduced to fewer latent variables that share a common variance and are unobservable, which is known as reducing dimensionality for the current study, factor analysis was conducted to reduce the number of variables that (a) impacted individual behaviour's optimism, or pessimism (b) affects an individual's usage of mobile money services (MMS)
Summary
The developments in mobile technologies have had tremendous effects on the physical products side and the nature of services provided in the world today. Diniz et al (2011) stated that mobile technology, when used and applied as a payment channel, create an opportunity for financial inclusion amongst the unbanked population while on the supply side creates opportunities for financial institutions to deliver a wide range of services at a minimum, mostly to people living in remote areas (Diniz et al, 2011; Aker and Mbiti, 2010).GSMA (2010) defines Mobile Money as a "service in which the mobile phone is used to access financial services". According to the IFC (2011) report, mobile money services involve, among others, the transfer of cash via mobile phones and both individuals, and small businesses, use this innovation to transfer money. It refers to mobile phones' use to perform financial and banking functions (IFC Mobile Money report, 2011). This definition encompasses several services, which include payments (for instance, person-to-person transfers, utility payments), finance (for instance, insurance products), and mobile banking (for instance., account balance inquiries), among others (Donovan 2012; Gencer 2011). The growth of mobile money has been phenomenal, in developing and emerging economies where sectors of the populations that are traditionally excluded from the formal financial system are being provided with a gateway to transformative services, including financial services and bringing more people online than ever before (GSMA 2018)
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