Moderating factors in adoption of mobile Financial services in kenya

Abstract

Rapid growth of mobile financial services in Kenya is transforming how consumers access financial services. This research uses a technology acceptance model known as the Unified Theory of Acceptance and Use of Technology (UTAUT) to investigate the moderating factors that influence the Kenyan consumer to adopt a particular mobile financial service provider and how they act in response to the newly adopted and diffused mobile technology. A quantitative research design was employed to study Kenyan consumers’ adoption and use of mobile money. Data for this study was collected from 311 respondents in different areas on Nairobi by means of a hardcopy survey complemented by face-to-face interviews. Data and analysis was done using Structural Equation Modeling (SEM) and AMOS. The results showed that in adopting mobile financial services, consumers were mostly influenced by the perception of the mobile money service on those in their social circle. Perceived trust in the mobile financial service was also a strong influence toward mobile money adoption. With respect to the moderating factors considered in this study i.e. age, gender, education and duration of use; none appeared to have any significant influence between the various predictors of intention to use mobile financial services. The study validated the UTAUT model in the context of mobile money. Knowledge gained from this study may be of use to providers of mobile money services or those intending to introduce similar services into the Kenyan market.