Examining the Effectiveness of MTN Mobile Banking on Transaction Efficiency among SMEs in Kasama Central Business District

This study examined the effectiveness of MTN mobile Banking on transaction efficiency among SMEs in Kasama Central Business District. A mixed-method research design was employed with a sample size of 50 SMEs. The findings revealed that MTN mobile services had a significant positive impact on transaction efficiencies. A fair rate of frequency of usage was reported, with 42% of respondents using the service daily and 38% weekly, indicating strong adoption. This was significant as the country has upto 3 major mobile service providers and hence the expected maximum average was a third or 33%. The service enhanced the speed and reliability of transactions, with 40% ratings excellent and 36% rating it good, which facilitated faster supplier payments and improved daily sales. The mobile service has removed the challenges which were arising from giving out change when a customer buys and they pay an amount that is exceeding the face value of the goods and services. The payment system was reported to be direct and would facilitate transfer of funds to the nearest cent or ngwee needed. In terms of cost-effectiveness, 42% of SMEs rated the service as very cost effective and 38% as cost effective, citing reduced cash handling, fewer Bank trips, and lower operational expenses. The possibility of starting and completing a transaction without making a physical movement of the However, about 12% indicated minimal cost benefits due to transaction fees and occasional inefficiencies. The study further established that mobile banking improved transaction volumes and record keeping, with 80% reporting increased transactions and 76% indicating better financial records. Despite these benefits, challenges such as network interruptions (8%), app freezing (8%), limited bulk payment options (8%), and failed transfers (8%) were noted, reflecting infrastructural and technical constraints. Nevertheless, overall satisfaction remained high, with 42% very satisfied and 38% satisfied. In conclusion, MTN mobile banking proved to be an effective tool for enhancing efficiency, reducing costs, and improving financial accountability among SMEs in Kasama CBD. The study recommended that MTN invest in stronger network infrastructure, expand bulk payment options, introduce offline transaction capabilities, and provide SME-focused training to maximize the platform’s potential. Addressing these operational challenges would further strengthen the role of mobile banking in supporting SME growth and financial inclusion.