The Influence of Perceived Trust on Mobile Money Services usage by SMEs Operations in Dodoma City, Tanzania

Abstract

Despite the spread of Mobile Money Services (MMS) offered by mobile money network, still consumers and business operators are using cash to execute financial transactions. It is not clear why cash transaction is more preferably used rather than mobile money service to support Small and Medium Enterprises (SMEs) business operations. This study focuses on f the influences of perceived trust on mobile money service usage by SMEs business undertaking in Dodoma, Tanzania. Study variables including compatibility, integrity reputation and MMS usage were identified and measured using quantitative techniques.  Questionnaires were designed to collect data from all respondent. Data were collected from 176 SMEs operators in Dodoma city using stratified sampling technique and hence simple random sampling was used to select respondents from each strata. Data were analysed by sing SPSS version 20 in which descriptive analysis were used to analyses demographic data while factor analysis were used to test the study hypothesis. The study found that, compatibility and integrity on MMS are positively and significantly influences MMS usage in business operation, while reputation on MMS has insignificant influence on SMEs operation in Dodoma city. The study revealed that, perceived trust has significant influence on mobile money services usage. The study had concluded that compatibility; integrity and reputation play an important role in enhancing trust on mobile money services usage to support SMEs operation in Dodoma city. The study recommends that, SMEs should adopt and continue using mobile money in their businesses undertaking due to reduced some costs to improve business prospects. In the same way, Mobile network service provider must play their role on ensuring that, users of MMS are assured of trust when executing financial transaction for their business operation.