An exploration of mobile money transfer service adoption among Islamic Bank customers in Somalia

Abstract

The world is changing rapidly due to technology, which is becoming an increasing necessity in the daily lives of people. Mobile Money Transfer Service (MMTS) is an alternative form of cash money that demonstrates the concept of electronic payment. Dahabshiil Bank International and Salam Somali Bank adopted MMTS in Somalia in partnership with a telecommunication company provider for MMTS. There has been no prior study conducted on the important factors affecting the adoption of MMTS based on Islamic banking customers in Somalia using the extended theory of Technology Acceptance Model, using perceived usefulness, perceived ease of use, perceived trust and perceived risk as predictors. The main objective of this study is to explore the customer acceptance on the important factors that influence the MMTS adoption among Islamic bank customers in Somalia. The target population of the study is Somali residents who have mobile phones to use the MMTS and have bank accounts. This research, using statistical methods, collected data from 404 customers that use MMTS and have bank accounts. The result of this study shows that the factors that influence the adoption of MMTS are perceived ease of use, perceived usefulness, perceived trust, which were found to be positive and significant while perceived risk was negative and significant. Key words: Mobile Money Transfer Service, Somalia, TAM, Technology