Modeling Adoption and Usage of Mobile Money Transfer Services in Kenya Using Structural Equations

Abstract

Mobile Money Transfer services have eased the means of transferring money from one mobile phone user to another in Kenya. Since the introduction of the services there is disparity in adoption of different mobile money transfer platforms in Kenya. In this study Structural Equation Modeling was used to create a model of factors that influence the adoption and usage of Mobile Money Transfer services in Kenya. The findings in this study provide useful information to Mobile Network Operators that they can use in implementation of their Mobile Money Transfer service. The study was conducted in Juja Township. The study established that the independent variable namely, Performance Expectancy, Effort Expectancy and Social Influence had significant influence on Behavioral Intention towards the use of a given Mobile Money Transfer service. This means that the MMT's users would continue to use a given Mobile Money Transfer service they have chosen. Facilitating Conditions was found to be a significant factor in predicting adoption and use of Mobile Money Transfer for males and females where gender was used as moderating factor. Also Behavioral intention was a significant determinant of Use Behavior of Mobile Money Transfer services. In conclusion the research model was found to be important in determining factors that influence the adoption and use of a given Mobile Money Transfer service.