The adoption of mobile money services and behavior intention of SMEs in Uganda

Abstract

The purpose of the study was to examine the adoption of mobile money services and behavioral intention of SMEs in Uganda. It was guided by three study objectives which included examine the drivers for adoption of mobile money service by SMEs in Uganda, to examine the determinants for behavioral intention of SMEs towards mobile money service and to examine the relationship between adoption of mobile money transfer service and behavioral intention by SMEs in Uganda. A cross-sectional survey design was employed to collect primary data using self-administered questionnaires. Data was gathered using a structured questionnaire from respondents in 79 SMEs in Kampala district. The data was analyzed using descriptive and correlation analysis techniques. Findings indicated that the adoption of Mobile money services has led to increase in profits, that is time saving, mobile money services can be easily integrated into the daily business activities. It was also found out that the use of Mobile money services boosts business and that there are minimal steps required to make business transactions, also that there is assurance of information confidentiality. However it was noted that the mobile money network is not reliable. The Pearson’s correlation coefficient for adoption of mobile money transfer service and behavioral intention by SMEs is (r=0.431, p<0.05). It is concluded that the adoption of Mobile money services is very beneficial to SME owners in terms of increased profits among other benefits however their network is not always dependable due to the unreliability of the network. It was recommended that MTN and warid pesa should improve on their network coverage in order to ensure that a customer can access his account at any time he feels like withdrawing or sending money and SMS messages should be frequently sent to the customer notifying him the of transactions he has made, among other recommendations.