Enablers for Willingness to Utilize Mobile Money by Small-Scale Entrepreneurs in Tanzania: The Moderating Role of Payment Infrastructure

This study examines the factors influencing Small-Scale Individual Entrepreneurs’ (SIEs) willingness to adopt mobile money services in Tanzania, with a particular focus on the moderating role of payment infrastructure. The extended Technology Acceptance Model (TAM) employed to determine key drivers of adoption and the role of contextual factors in shaping entrepreneurs' decisions. Data from 347 respondents, was collected using self-administered structured questionnaires, and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings suggest that perceived ease of use, perceived risk, perceived trust, capital, and daily sales significantly influence SIEs' mobile money adoption decisions. Surprisingly, perceived usefulness and business type showed no direct significant impact. Notably, payment infrastructure emerged as a critical moderating factor, strengthening the relationship between business type and mobile money adoption but not affecting the relationships involving perceived ease of use or trust.These results provide valuable insights into the adoption dynamics of mobile payments within Tanzania’s informal economy. The study highlights the need for policymakers and mobile money service providers to enhance payment infrastructure tailored to specific business types while addressing security concerns to mitigate perceived risks and build trust. This approach could foster broader adoption and drive financial inclusion for SIEs in developing economies.