RUAHA CATHOLIC UNIVERSITY

The adoption of mobile phone banking has the potential to provide street vendors with access to financial services that can help them grow their businesses and improve their livelihoods. However, the adoption of mobile phone banking among street vendors in developing countries is still low. This study investigated the factors that influence the adoption of mobile phone banking among street vendors in Iringa Municipality, Tanzania. The study employed survey research design where quantitative approach was used to collect data. The study population was 1373 street vendors were a sample of 100 street vendors was drawn using simple random sampling technique. Data was analysed using descriptive statistical analysis. The study found that both attitude, subjective norm, and perceived behavioral control influence the adoption of mobile phone banking systems which is consistent with the Theory of Planned Behavior (TPB), which is a widely used theoretical model for predicting and understanding human behavior. Subjective norm was found to be a significant factor in the adoption of mobile phone banking systems due to the influence of social groups, customers, friends, vendors and the government. Likewise, perceived behavioral control, which is influenced by low cost, network availability, supportive services availability, and policy and regulation were also found to influence the adoption of mobile phone banking. Finally, trust, ease to use, ease to learn, convenience, and compatibility were too found to be the only attributes that explain the significant value of attitude in the adoption of mobile phone banking. The study recommends that mobile phone vendors and banks have to design mobile phone banking services that induce attitude of street vendors in the way that the services need to be designed in order to attract street vendors to want to use them.

Mobile Phone Banking System; Street Vendors; Attitude; Subjective Norm; Perceived Behavioural Control