Mobile Money Payment Adoption in Tourism: Incidence from SMEs from Zanzibar, Tanzania

Abstract

This paper focused on adoption of mobile money payment among SMEs in Tourism Sector. Survey design was used to collect quantitative data for testing hypothesis in a total sample size of 158 respondents in Unguja. Managerial stratified sampling technique was used to ensure representation of the sample among SMEs in tourism sector and thereafter simple random sampling was used to draw a sample from each stratum. Cronbach's alpha(p) of greater than 0.6 was found and confirmed the acceptable range of internal consistence of each variable.  

Findings using multiple regression analysis revealed that perceived usefulness and perceived easiness of use have a significant influence on SMEs adoption of mobile money payments in Zanzibar. This study concluded that the benefit offered by mobile money payments such as compatibility and ease of using mobile payment have a significant influence on SMEs adoption of mobile money payment. This study recommended that for SMEs to adopt MMS, vendors have to develop the mobile money payments services which fit well to SMEs daily operations. Additionally, the government should enforce the newly developed policy that could help to speed up the adoption by increasing mobile infrastructural, technological knowledge and reducing exercise tax for mobile money devices.