Factors Affecting Mobile Payment Adoption By Merchants In Ethiopia

Nowadays the world witnessed a rapid growth in mobile commerce and widespread use of mobile devices. The growth of mobile commerce depends on widely accepted mobile payment systems. However, this trend is not well experienced in developing countries like Ethiopia. Even though merchants somehow benefited from the rapid growth in electronics commerce and use of mobile devices in ecommerce, they still hesitate to effectively employ in their day to day transactions. Little research has been conducted to examine and explain the merchants\u27 views on the new payment technology. In this paper, we explore the factors that affect merchants’ adoption of mobile payment in Ethiopia. The result suggests that relative advantage, ease of use, usefulness, attitude, trust, risk/security and cost are factors that affect mobile payment adoption positively and significantly. Whereas compatibility is found not significant for merchants adoption of mobile payment systems in Ethiopian context. Based on the findings, the study proposes a conceptual model for mobile payment adoption to guide practice and future research in this emerging area