The Effects of Mobile Money Systems on Business Performance among Informal Traders in Dar es Salaam, Tanzania

The introduction of mobile money systems has significantly enhanced financial services in Dar es Salaam, providing essential financial tools for informal traders who often lack access to formal banking. These systems enable traders to store, send, receive money, and access microloans, improving transaction speed, convenience, and overall business efficiency. This study aims to evaluate the effects of mobile money systems on informal traders' business performance, focusing on capital growth, customer base expansion, and operational management. Using a mixed-methods approach with qualitative interviews and a quantitative survey, the research found that mobile money systems positively affect financial management and business growth. However, traders face challenges such as high transaction costs and system complexity, which hinder full adoption. The study concludes that mobile money has the potential to significantly transform informal trade by fostering financial inclusion, enhancing liquidity, and improving trade efficiencies, but it also highlights the need for targeted policy interventions to address barriers to adoption and maximize its benefits for this sector. This research also recommends reducing transaction fees and fostering supportive regulatory environments to promote digital financial inclusion.