Determinants of Tele Birr Money Service Adoption of Ethio Telecom

The general objective of this study was to examine the determinants of telebirr mobile money service adoption, with a particular focus on ethio telecom customers in Harar city. The aim was to provide valuable insights for policymakers, service providers, and researchers, leading to more effective strategies and interventions to enhance mobile money adoption in Ethiopia. The study used perceived usefulness, perceived ease of use, perceived trust, perceived cost, and perceived risk as independent variables, with the adoption of telebirr as the dependent variable. To identify the determinants of telebirr adoption, an explanatory research design was used in the study, employing a quantitative research approach. The sources of data for the study were both primary and secondary. Primary data was collected from ethio telecom customers in Harar City using a questionnaire survey. A total of 384 questionnaires were distributed. The secondary data was obtained from related works of literature. A deductive research approach was used to test the validity of assumptions (theories/hypotheses) drawn from various sources. Mean, standard deviations, Spearman correlation, and binary logistic regression analysis were utilized to examine the relationships and identify the effect of explanatory variables on the adoption of telebirr service. The analysis was conducted using SPSS version 26 software application. The results of the study showed that, with other variables held constant, perceived usefulness and perceived ease of use had a positive association and significant influence on the adoption of telebirr service, with different exponent values. Perceived risk, on the other hand, had a negative association and significant effect on telebirr adoption. The remaining explanatory variables, perceived trust and perceived cost, had a positive association but insignificant influence on the adoption of telebirr. Based on the findings, the study recommended that telebirr service providers and marketers should concentrate on the determinant variables that have the greatest influence on the adoption of telebirr service, namely perceived usefulness, perceived ease of use, and perceived risk. Furthermore, the study suggested that further research should be conducted to consider other parts of the country, including rural areas, due to the possible effects of factors in those areas.