Factors affecting mobile payment services using cellular phones: a case of mobile payment systems services in Dar-es-salaam

The use of mobile phones has increased rapidly during the past decade to date. Despite the fact that there is rapid increase of use of mobile devices there is slow adoption of mobile payment systems. This study has focussed on identifying the means for fastening adoption of mobile payment services in Tanzania. Basing on the study problem this study has established factors affecting mobile payment services using cellular phones. A questionnaire was used as data collection tool. Having collected data; analysis was done using Statistical Package for Social Sciences (SPSS) program. Basing on four hypotheses, the relationship between variables was established using regression analysis basing on the statistical value (t) for establishing level of significance. R-squared values, ANOVA analysis and Durbin Watson analysis were used to test the validity of the study hypotheses. Thus, through t-value test, the study has established that any positive change in security and reliability, cost-effectiveness, ease of use and consumer and merchant acceptance issues has a positive influence to adoption of mobile payment systems in Tanzania. This study has policy implications to practitioners and regulators of mobile payment services. The study recommends initiatives to be put in place for improving security and reliability, cost-effectiveness and ease of use of mobile payment services through affordable mobile service charges, better system configurations, network reliability and intensive awareness training to mobile phone customers.