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VOL. 7, ISSUE 2 (2025)
Exploring factors limiting adoption of mobile-based savings service: A case study of M-Pesa, Meru district, Tanzania
Authors
Arold Kyagara
Abstract
This research explored the factors that hinder
the use of M-Pawa mobile savings services among M-Pesa users in Meru and
Arusha, Tanzania, employing a quantitative methodology with a sample of 196
participants. Despite 89.8% of users being aware of M-Pawa, only 25.5% were
actively utilizing it, with the majority opting for traditional banks or
informal savings alternatives. Major obstacles to adoption were identified,
including elevated transaction fees (69.9% agreement), concerns about trust and
security (66.4%), restrictive withdrawal limits (67.0%), and inadequate
financial literacy (56.9%). Age played a significant role in adoption patterns,
with individuals aged 50-70 exhibiting particular hesitance due to a lack of
familiarity with technology. The study's conclusions indicate that the
challenges of adopting mobile savings extend beyond simple awareness of the
service. Recommendations for practical interventions include restructuring
fees, improving security protocols, implementing targeted financial education
initiatives, and designing user-friendly services to foster M-Pawa adoption.
These findings provide essential insights for mobile network operators and
policymakers focused on enhancing digital financial inclusion in Tanzania and
comparable emerging markets.
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Pages:57-60
How to cite this article:
Arold Kyagara "Exploring factors limiting adoption of mobile-based savings service: A case study of M-Pesa, Meru district, Tanzania". International Journal of Social Science and Humanities, Vol 7, Issue 2, 2025, Pages 57-60
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