Influence of Technology-Related Factors on The Use of Mobile Money Services in Tanzania: The Moderating Role of Financial Literacy

Abstract

This study investigates the key factors influencing mobile money usage in Tanzania, focusing on technological determinants (mobile phone ownership, internet access, and bank account ownership), and demographic characteristics. Additionally, the study investigates the moderating role of financial literacy in shaping the relationship between these technological factors and mobile money usage. Grounded in the Technology Acceptance Model (TAM) and Theory of Planned Behaviour (TPB), the research uses a cross-sectional design with secondary data from the 2023 FSDT survey, including 9,915 individuals aged 16 and above. Two models are employed: the Diverse Mobile Money Service Usage (DMMSU), analysed using ordinary least squares (OLS), and the Likelihood of Mobile Money Service Usage (LMMSU), examined using logistic regression. Stata 14 software was used for all analyses. Study found that mobile phone ownership, internet access, and bank account ownership significantly predict mobile money usage, indicating the importance of technological access for financial inclusion.
Financial literacy positively moderates the relationship between technological factors and mobile money usage, but negatively moderates the relationship between bank account ownership and mobile money usage, suggesting that financially literate individuals with bank accounts may rely less on mobile money services. This study offers a unique contribution by examining the intersection of technological determinants and financial literacy in driving mobile money usage in Tanzania. Unlike previous studies that focus solely on technology or demographics, it integrates both aspects while introducing the moderating effect of financial literacy. The research uses a nationally representative sample and applies both OLS and logistic regression models, providing comprehensive insights into diverse and likely mobile money usage behaviors.

Keywords: Mobile money, financial literacy, technological determinants.