Abstract

This study investigates the behavioral determinants of Mobile Phone Payment System (MPPS) adoption in Tanzania using the Technology Acceptance Model (TAM). Results from a survey of 260 respondents indicate that perceived ease of use (PEoU) is the strongest predictor of adoption, followed by service quality, perceived usefulness (PU), and information quality. Nonetheless, barriers such as high transaction costs, limited user competence, trust concerns, and cultural preference for cash constrain widespread utilization. Adoption decisions were also found to be shaped by partner and community practices, underscoring the role of network externalities. The study recommends enhancing digital literacy and user training to reduce technological anxiety, improving service reliability and customer support to build confidence, and introducing transparent, flexible pricing models to address cost sensitivity. Additionally, robust regulatory frameworks promoting interoperability, consumer protection, and cybersecurity are essential. These measures will foster greater trust, inclusivity, and sustainable growth of Tanzania’s digital financial ecosystem.

References

• Osabutey, E. L. C. (2024). Mobile money and financial inclusion in Africa: Emerging issues. Technological Forecasting and Social Change, 198, 122–135.
• Kelly, A. E. (2023). Using a technology acceptance model to determine factors influencing mobile financial services adoption. Innovation and Entrepreneurship, 2(1), 1–14.
• Research Trends in Mobile Payment Adoption: A Systematic Review. (2024). Journal of Electronic Commerce Research, 25(2), 211–229.
• Hornuf, L. (2025). Mobile fintech adoption in Sub-Saharan Africa: Drivers and barriers. Journal of African Business, 26(1), 15–32.
• World Bank. (2024). The Impact of Mobile Money in Sub-Saharan Africa: Financial Inclusion, Digital Payments, and Household Welfare. Washington, DC: World Bank.
• Tanzania Institute of Commerce and Global Learning (TICGL). (2025). Tanzania Mobile Money Market Report 2020–2024. Dar es Salaam: TICGL.
• Tanzania Communications Regulatory Authority (TCRA). (2024). Quarterly Communications Statistics Report, June 2024. Dar es Salaam: TCRA.
• Bank of Tanzania (BoT). (2024). Annual Report on Mobile Money Transactions. Dar es Salaam: BoT.
• International Finance Corporation (IFC). (2024). Evolution of the Mobile Money Payment Market in Tanzania. Nairobi: IFC.
• Akpan, I., & Nsimba, A. (2023). Security perceptions and trust in mobile money adoption. Information Systems Frontiers, 25(4), 987–1004.
• Okeke, C., & Mensah, J. (2022). Social influence and mobile payments adoption: Extending TAM. International Journal of Information Management, 64, 102482.
• Koloseni, D. (2025). Towards sustainable adoption: Investigating QR codes mobile payment continuance in Tanzania. Journal of Strategy and Innovation, 4(2), 33–48.
• Rimisho, E. (2024). Factors influencing customer adoption of e-payment services in Tanzania. International Journal of Finance, Insurance and Risk Management, XIV(4), 87–98.
• Suri, T. (2023). Mobile money and household welfare in Africa: A review. VoxDevLit, 3(2), 1–20.
• GSMA. (2023). Tanzania Mobile Money Levy Impact Assessment Report. London: GSMA.
• Mwakyembe, P., & Anderson, J. (2023). User–agent interactions in Tanzania’s mobile money ecosystem: Informal workarounds and risks. African Journal of Information Systems, 15(3), 45–62
• Kelly, A. E. (2023). Using a technology acceptance model to determine factors influencing mobile financial services adoption. Innovation and Entrepreneurship, 2(1), 1–14.
• Okeke, C., & Mensah, J. (2022). Social influence and mobile payments adoption: Extending TAM. International Journal of Information Management, 64, 102482.
• Akpan, I., & Nsimba, A. (2023). Security perceptions and trust in mobile money adoption. Information Systems Frontiers, 25(4), 987–1004.
• Hornuf, L. (2025). Mobile fintech adoption in Sub-Saharan Africa: Drivers and barriers. Journal of African Business, 26(1), 15–32.
• Research Trends in Mobile Payment Adoption: A Systematic Review. (2024). Journal of Electronic Commerce Research, 25(2), 211–229.
• Wang, L., & Zhao, H. (2021). Factors influencing mobile wallet adoption in China. Telematics and Informatics, 62, 101619.
• Lee, S., & Kim, J. (2020). Extending TAM in mobile payments: The role of information quality. Computers in Human Behavior, 110, 106377.
• Shaikh, A., Karjaluoto, H., & Pahnila, S. (2023). Consumers’ acceptance of mobile payments: Extending TAM with trust. International Journal of Information Management, 68, 102539.
• Suri, T. (2023). Mobile money and household welfare in Africa: A review. VoxDevLit, 3(2), 1–20.
• IFC. (2024). Evolution of the Mobile Money Payment Market in Tanzania. Nairobi: IFC.
• Adu, K., & Boateng, R. (2022). Determinants of mobile money adoption in Ghana: An extended TAM approach. Information Technology for Development, 28(4), 659–675.
• Ouma, S., & Mwakalinga, G. (2021). Mobile money interoperability and user adoption in East Africa. Journal of African Business, 22(3), 412–428.
• Osabutey, E. L. C. (2024). Mobile money and financial inclusion in Africa: Emerging issues. Technological Forecasting and Social Change, 198, 122–135.
• Tanzania Communications Regulatory Authority (TCRA). (2024). Quarterly Communications Statistics Report, June 2024. Dar es Salaam: TCRA.
• Rimisho, E. (2024). Factors influencing customer adoption of e-payment services in Tanzania. International Journal of Finance, Insurance and Risk Management, XIV(4), 87–98.
• Koloseni, D. (2025). Towards sustainable adoption: Investigating QR codes mobile payment continuance in Tanzania. Journal of Strategy and Innovation, 4(2), 33–48.
• GSMA. (2023). Tanzania Mobile Money Levy Impact Assessment Report. London: GSMA.
• Bank of Tanzania (BoT). (2024). Annual Report on Mobile Money Transactions. Dar es Salaam: BoT.
• Mwakyembe, P., & Anderson, J. (2023). User–agent interactions in Tanzania’s mobile money ecosystem: Informal workarounds and risks. African Journal of Information Systems, 15(3), 45–62.
• Mushi, R. M. (2024). Assessing the factors influencing intention to use e-services: Evidence from Tanzania. Journal of Electronic Business Development and Economics, 2(1), 67–81.
• Venkatesh, V. (2000). Determinants of perceived ease of use: Integrating control, intrinsic motivation, and emotion into the technology acceptance model. Information Systems Research, 11(4), 342–365.
• Van der Heijden, H. (2004). User acceptance of hedonic information systems. MIS Quarterly, 28(4), 695–704.
• Seddon, P. B. (1997). A respecification and extension of the DeLone and McLean model of IS success. Information Systems Research, 8(3), 240–253.
• Wang, Y. S., & Lin, H. H. (2012). Determinants of mobile banking service quality: A customer-based perspective. International Journal of Electronic Finance, 6(1), 1–17.
• Wixom, B. H., & Todd, P. A. (2005). A theoretical integration of user satisfaction and technology acceptance. Information Systems Research, 16(1), 85–102.
• Anurag, A., Tyagi, R., & Raddi, S. (2009). Mobile payment adoption in emerging markets: An empirical study. International Journal of Mobile Communications, 7(2), 138–152.
• Khodawandi, D., Pousttchi, K., & Turowski, K. (2003). Acceptance of mobile payment procedures in Germany. HICSS Proceedings, 1–10.
• Nunnally, J. C. (1978). Psychometric Theory (2nd ed.). New York: McGraw-Hill.
• Hair, J. F., Anderson, R. E., Tatham, R. L., & Black, W. C. (1998). Multivariate Data Analysis (5th ed.). Upper Saddle River, NJ: Prentice Hall.
• Hair, J. F., Black, W. C., & Anderson, R. E. (2010). Multivariate Data Analysis: A Global Perspective (7th ed.). Upper Saddle River, NJ: Pearson.
• Kikulwe, E. M., Fischer, E., & Qaim, M. (2021). Mobile money, smallholder farmers, and household welfare in Kenya. World Development, 143(1), 105-121.
• Shao, Z., & Yin, H. (2022). Digital literacy and mobile payment adoption in developing countries. Information Technology for Development, 28(4), 745-762.
• Zhou, T. (2011). Examining the critical success factors of mobile website adoption. Electronic Commerce Research and Applications, 10(3), 219–226.
• Asongu, S., & Nwachukwu, J. (2021). Mobile money innovations and income inequality in Africa. Information Development, 37(2), 201–212.
• Wang, Y., & Chen, J. (2020). Service quality and user satisfaction in mobile banking adoption: Evidence from Asia. Journal of Retailing and Consumer Services, 54, 102035.
• Mhlongo, S., & Ngwenya, M. (2022). The role of service quality in sustaining mobile money platforms in East Africa. African Journal of Economic and Management Studies, 13(5), 911–928.
• Yoris, A., & Kauffman, R. (2008). The economics of mobile payments: Understanding stakeholder issues. Electronic Commerce Research and Applications, 7(2), 127–140.
• Mwangi, J., & Mutiso, P. (2023). Network externalities and mobile money adoption in Sub-Saharan Africa. International Journal of Information Management, 69, 102610.
• Power, D., & Sohal, A. (2002). Best practice in the implementation and use of electronic commerce. Benchmarking: An International Journal, 9(2), 190–200.
• Komba, G., & Mlozi, S. (2021). Barriers to mobile payment adoption among small-scale traders in Tanzania. Journal of African Business, 22(3), 380–398.
• Lin, H., & Wang, Y. (2020). Initial trust and technology adoption: Evidence from mobile commerce. Information & Management, 57(6), 103343.
• International Finance Corporation (IFC). (2024). Digital finance in Sub-Saharan Africa: Trends and adoption challenges. IFC Working Paper Series.
• Achieng, M., & Mutua, J. (2025). Institutional dynamics and mobile payment adoption in East Africa. Journal of Financial Services Research, 57(1), 87–106.