Towards non-cash payments in Tanzania: The role of mobile phone money services
- Resource Type
- Authors
- Serijo Mlasu; Yohana Tweve; Hosea Mpogole; Deo Sabokwigina; Neema Mwakatobe
- Source
- 2016 IST-Africa Week Conference.
- Subject
- Service (business)
Finance
Transaction cost
business.industry
media_common.quotation_subject
05 social sciences
050301 education
Sample (statistics)
Computer security
computer.software_genre
Payment
Mobile phone
Cash
Mobile payment
Mobile telephony
0509 other social sciences
050904 information & library sciences
business
0503 education
computer
media_common
- Language
This study investigated the usage of non-cash payments through m-money services among students of the University of Iringa in Tanzania. A convenient sample of undergraduate students and business operators within and around the University campus was used. It was found that 80% of utility shops accepted noncash payments through m-money, business operators were optimistic about the service although there were challenges related to transaction costs and network/sending errors. Approximately 81% of respondents frequently received money from their sponsors/relatives through their m-money accounts. About 63% of respondents made regular savings deposits on their mobile phones unlike their bank accounts. Over 60% used m-money services for non-cash payments and savings deposits. This has a significant implication for the recent movement from predominantly cash to non-cash payments as subscribers directly pay for their purchased items through their mobile phones without necessarily having cash at hand. Practical recommendations and a direction for further study are provided.