School of Information Science

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Browsing School of Information Science by Author "Abebe, Bezaalem"

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    Factors Affecting Mobile Payment Adoption in Ethiopia: A Consumer Perspective
    (Addis Ababa University, 2019-02-02) Abebe, Bezaalem; Teferi, Dereje (PhD)
    Though several studies have contributed substantially to the literature on mobile payment adoption, the findings of most of the studies may not be applicable to other countries like Ethiopia, due to differences in cultural, economic and legal environments. Moreover, the existing handful researches conducted on Ethiopia did not analyze the adoption of mobile payments; rather they just focused on the framework. Therefore, this study is particularly intended to examine the factors affecting customers’ adoption of mobile payments with a special focus on the customers of Commercial Bank of Ethiopia, Dashen Bank and MBirr. The study fills the gap in literature by scrutinizing different technology adoption models. The general objective of the paper is to identify the factors that affect mobile payment adoption of consumers in Ethiopia. An attempt is made to assess factors affecting customers’ decision to adopt mobile payments. The analysis was based on a questionnaire distributed to consumer mobile payment customers of Commercial Bank of Ethiopia, Dashen Bank and MBirr. Broad categories of nine factors were selected to assess different factors affecting customers’ decision to adopt mobile payments: relative advantage, compatibility, perceived ease of use, perceived usefulness, perceived cost, perceived trust, perceived risk, attitude and behavioral intention. These variables were modeled to test their effect on mobile payment adoption. The proposed model was tested using a partial least square with the help of the SmartPLS software version 3.0 as well as SPSS version 23. Attitude is modeled as a function of RA, CM, PEU and PU. RA, PEU, PU and CM are found to be positively and significantly affecting customers’ attitude to adopt mobile payment. At the same time, behavioral intention is modeled as a function of PC, PT and PR. PT and PR are found to be positively and significantly affecting customers’ behavioral intention to adopt mobile payment. On the other hand, PC was found to be positively but insignificantly affecting customers’ behavioral intention to adopt mobile payment. Finally mobile payment adoption is modeled as a function of the average values of attitude and behavioral intention. AT and BI are found to be positively and significantly affecting customers’ adoption of m-payment.