The Influence of Mobile Money Services Usage on Small and Medium Enterprises Operations in Tanzania

The study aimed at finding out the influence of Mobile Money Services (MMS) usage on small and medium enterprises (SMEs) operationsin Tanzania. In line with this broad objective, the study specifically aimed at carrying out investigations on the following aspects: (i) the influence of perceived usefulness of mobile money services in supportingSMEs Operations. (ii) The influence of perceived trust on mobile money services usage in supportingSMEs Operations; and (iii) the influence of perceived risks associated with the use of mobile money services bySMEs Operations. To achieve the three objectives, positivism paradigm aligned with quantitative research approach was adopted. Data were collected using a structured questionnaire that was administered to a sample of 372 SMEs operators inMwanza, Dar es Salaam, and Mtwara. The findings using structural equation modelling on SPSS AMOS version 22 revealed that, Perceived Usefulness andPerceived Riskon MMS usage are significant in influencingSMEs Operationswhile Perceived Trust on MMS were found to be insignificant. This study concludes that Perceived Usefulness on MMS (Increase Profitability, Improve Financial Services and Perceived Ease of Use) andPerceived Risk on MMS(Financial Risk and Performance Risk) have significance influence on SME business operation. This study recommended that SMEs should be encouragedto use MMS in business operation particularly the services, which fit well in their business operations; Mobile Service providers should make sure that risks are minimized. Additionally, the Government should develop and formulate a policy, which would help to scale up the uptake of MMS usage by assuring mobile infrastructure, technological knowledge and affordable transaction cost onMMS usage to enhance SMEs operations in Tanzania