FACTORS AFFECTING ADOPTION OF MOBILE PAYMENT SERVICES

Abstract

The rapid growth of mobile payment services has transformed financial inclusion and transactions across various sectors in Tanzania. However, the adoption and usage of these services remain limited to small scale fish sellers. This study is set to explores the determinants affecting the adoption of mobile payment services by small-scale fish sellers in the Mwanza region, Tanzania. The study is grounded in the Unified Theory of Acceptance and Use of Technology (UTAUT), which provides a comprehensive framework for understanding the factors that influence individuals' decisions to adopt new technologies. The data for this study were collected using a close-ended questionnaire distributed to a sample of 200 respondents, who were selected through a simple random sampling technique. The study employed a combination of content analysis and descriptive analysis as its analytical approach. The findings reveal that digital literacy and social influence play a significant positive influence role in the adoption of mobile payment services by small scale fish sellers. However, in contrast the study finding revealed that the concern over perceived transaction security negatively affected the adoption of mobile payment services. The study concluded that in order to foster greater adoption of mobile payment services within small scale fish sellers, mobile money service providers should prioritize initiatives that enhance digital skills, promote peer-to-peer learning, and strengthen financial security issues that enhance trust-building in financial transactions. Keywords: Mobile Payment Services, Small-Scale Fish sellers, Unified Theory of Acceptance and Use of Technology