International Journal of Research and Innovation in Social Science (IJRISS) |Volume VI, Issue IX, September 2022|ISSN 2454-6186
Determinants of Mobile Money Adoption among Micro and Small Enterprises in Lusaka
Dr Zivanai Mazhambe*, Tasila Alice Ngwira
Graduate School of Business, University of Zambia., Zambia
*Corresponding Author
Abstract: The aim of the study was to understand the factors that influence the adoption of mobile money services for business transaction purposes by micro and small enterprises (MSEs) in Lusaka. The aim was divided into three specific objectives. These objectives were to determine the factors (demographic and economic factors and features available) that influence the use of mobile money by MSEs for business transaction purposes; to achieve this primary focus was given to three factors availability of savings and borrowing services on the platform, transaction costs and gender. Age and education were control variables. The study used cross-sectional primary data. The study employed a pragmatism research philosophy and a mixed research approach. The data was collected using a survey questionnaire administered by the researcher to respondents sampled using purposive sampling technique. The study had a sample size of 102 respondents. The binary logistic model was the regression model used. The empirical results showed that most businesses who use Airtel money started using it less than a year ago, consider the cost to be fair, save on the platform, are affected by insufficient space borrow on the platform and are also affected by the unavailability of agents. The regression results of the binary logistic model showed that savings and insufficient float have a statistically significant impact on the adoption of mobile money. Saving using mobile money increases the likelihood of using it to conduct business transactions and issues of insufficient float among agents constrain the probability of using it to conduct business transactions.
Keywords: Mobile money; Airtel money; MSEs, Float, Mobile money agents, insufficient float, save
I. INTRODUCTION
There has been a considerable increase in the use of mobile money services in Zambia. The increase in the adoption of mobile money has improved the level of financial inclusion in the country. The rapid spread of mobile money has been attributed to the low costs of delivering the product to the end-users as compared to other financial services, i.e., banking. The product has a higher penetration rate than other financial products among the low-income groups. In addition, it is relatively easier to use, available and accessible. However, there is still a need to assess the adoption of mobile money among Micro and Small Enterprises (MSEs). Mobile money offers an opportunity of including MSEs, which is an integrally large sector in the economy, in the financial market. This is an evaluation of the various factors that affect the adoption of mobile money services by MSEs in the Central Business District (CBD). The study focuses on Airtel mobile money.