Factors Affecting Intention to use Mobile Money Service in Sri Lanka: Moderating Effect of Demographic Factors with reference to Western Province of Sri Lanka

Abstract

Mobile money service allows mobile users to perform financial transactions using their mobile phones which helps to decline the physical use of money. Therefore, the objective of the study was to identify the factors affecting intention to use mobile money service in Sri Lanka and the relationship between those identified factors and intention to use mobile money services. Further, the study is carried out to assess the moderating impact of demographic factors on the relationship between those factors and the intention to use mobile money. The data collection was carried out through a structured questionnaire from 400 randomly selected participants of Western province Sri Lanka. Usefulness, trust, risk, awareness, and knowledge are identified as the key factors affecting the intention to use mobile money service. There was a significant positive relationship between usefulness, trust, awareness, and knowledge with the intention to use mobile money while the risk was significantly negative. Further, the moderating impact of demographic factors on the above-identified five factors was assessed and it was noted that gender and age do not moderate the relationship between the above-identified five factors and user intention, but income level and job title moderate the relationship between above-identified factors and user intention. Based on the results of the study it is recommended that mobile telecom operators should take actions to increase usefulness, trust, awareness and knowledge while taking actions to decrease the risk factors involving in the service. Further, it is recommended to consider education level and working experience as moderating demographic factors of factors effecting on intention to use mobile money services.