Factors Affecting Mobile Payment Adoption In Ethiopia A Consumer Perspective

Though several studies have contributed substantially to the literature on mobile paymentrnadoption, the findings of most of the studies may not be applicable to other countries likernEthiopia, due to differences in cultural, economic and legal environments. Moreover, the existingrnhandful researches conducted on Ethiopia did not analyze the adoption of mobile payments;rnrather they just focused on the framework. Therefore, this study is particularly intended tornexamine the factors affecting customers’ adoption of mobile payments with a special focus on therncustomers of Commercial Bank of Ethiopia, Dashen Bank and MBirr. The study fills the gap inrnliterature by scrutinizing different technology adoption models. The general objective of thernpaper is to identify the factors that affect mobile payment adoption of consumers in Ethiopia. Anrnattempt is made to assess factors affecting customers’ decision to adopt mobile payments. Thernanalysis was based on a questionnaire distributed to consumer mobile payment customers ofrnCommercial Bank of Ethiopia, Dashen Bank and MBirr. Broad categories of nine factors werernselected to assess different factors affecting customers’ decision to adopt mobile payments:rnrelative advantage, compatibility, perceived ease of use, perceived usefulness, perceived cost,rnperceived trust, perceived risk, attitude and behavioral intention. These variables were modeledrnto test their effect on mobile payment adoption. The proposed model was tested using a partialrnleast square with the help of the SmartPLS software version 3.0 as well as SPSS version 23.rnAttitude is modeled as a function of RA, CM, PEU and PU. RA, PEU, PU and CM are found tornbe positively and significantly affecting customers’ attitude to adopt mobile payment. At the samerntime, behavioral intention is modeled as a function of PC, PT and PR. PT and PR are found to bernpositively and significantly affecting customers’ behavioral intention to adopt mobile payment.rnOn the other hand, PC was found to be positively but insignificantly affecting customers’rnbehavioral intention to adopt mobile payment. Finally mobile payment adoption is modeled as arnfunction of the average values of attitude and behavioral intention. AT and BI are found to bernpositively and significantly affecting customers’ adoption of m-payment.

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