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Examining Trust and Risk in Mobile Money Acceptance in Uganda

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  • Ronald Baganzi

    (School of Management, Kyung Hee University, Seoul 130-701, Korea)

  • Antonio K. W. Lau

    (School of Management, Kyung Hee University, Seoul 130-701, Korea)

Abstract

Mobile money adoption can contribute to achieving Sustainable Development Goals in Uganda but the factors affecting its sustainable adoption remain largely unknown. This paper explores the extent to which mobile money users’ trust and risk perceptions affect mobile money services adoption of in Uganda. A survey was conducted with 438 mobile money users from Uganda and data was analyzed using Partial Least Squares (PLS) Structural Equation Modelling (SEM). From the results, we obtained new empirical evidence for applying trust and risk perceptions for analyzing mobile money acceptance. We found that mobile money users rely on the structural soundness of mobile money services providers and their ability to provide mobile money services with low perceived risk. Performance expectancy, perceived risk and structural assurance significantly influenced behavioral intention to adopt mobile money. Trust belief did not significantly influence behavioral intention. These results help us to understand and promote mobile banking services in underdeveloped countries, which is of practical and scientific interests. We finally provide practical implications for mobile money services providers, commercial banks and central banks in Africa.

Suggested Citation

  • Ronald Baganzi & Antonio K. W. Lau, 2017. "Examining Trust and Risk in Mobile Money Acceptance in Uganda," Sustainability, MDPI, vol. 9(12), pages 1-22, December.
    • Handle: RePEc:gam:jsusta:v:9:y:2017:i:12:p:2233-:d:121400
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    References listed on IDEAS

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    2. Wei-Lun Chang & Li-Ming Chen & Takako Hashimoto, 2022. "Cashless Japan: Unlocking Influential Risk on Mobile Payment Service," Information Systems Frontiers, Springer, vol. 24(5), pages 1515-1528, October.
    3. Favourate Y. Mpofu, 2022. "Industry 4.0 in Financial Services: Mobile Money Taxes, Revenue Mobilisation, Financial Inclusion, and the Realisation of Sustainable Development Goals (SDGs) in Africa," Sustainability, MDPI, vol. 14(14), pages 1-24, July.
    4. Emmanuel Kofi Penney & James Agyei & Eric Kofi Boadi & Eugene Abrokwah & Richmond Ofori-Boafo, 2021. "Understanding Factors That Influence Consumer Intention to Use Mobile Money Services: An Application of UTAUT2 With Perceived Risk and Trust," SAGE Open, , vol. 11(3), pages 21582440211, June.
    5. Dastane, Omkar & Goi, Chai Lee & Rabbanee, Fazlul, 2020. "A synthesis of constructs for modelling consumers’ perception of value from mobile-commerce (M-VAL)," Journal of Retailing and Consumer Services, Elsevier, vol. 55(C).
    6. Gary Cokins & Ionica Oncioiu & Mirela Cătălina Türkeș & Dan Ioan Topor & Sorinel Căpuşneanu & Carmen Adina Paștiu & Delia Deliu & Alina Nicoleta Solovăstru, 2020. "Intention to Use Accounting Platforms in Romania: A Quantitative Study on Sustainability and Social Influence," Sustainability, MDPI, vol. 12(15), pages 1-17, July.
    7. Dastane, Omkar & Goi, Chai Lee & Rabbanee, Fazlul, 2023. "The development and validation of a scale to measure perceived value of mobile commerce (MVAL-SCALE)," Journal of Retailing and Consumer Services, Elsevier, vol. 71(C).
    8. Mahmoud, Zeinab, 2019. "Determinants of Mobile Money Adoption," 2nd Europe – Middle East – North African Regional ITS Conference, Aswan 2019: Leveraging Technologies For Growth 201742, International Telecommunications Society (ITS).
    9. Senyo, PK & Osabutey, Ellis L.C., 2020. "Unearthing antecedents to financial inclusion through FinTech innovations," Technovation, Elsevier, vol. 98(C).
    10. Francisco Jesús Gálvez-Sánchez & Juan Lara-Rubio & Antonio José Verdú-Jóver & Víctor Meseguer-Sánchez, 2021. "Research Advances on Financial Inclusion: A Bibliometric Analysis," Sustainability, MDPI, vol. 13(6), pages 1-19, March.
    11. Komlan Gbongli & Yongan Xu & Komi Mawugbe Amedjonekou, 2019. "Extended Technology Acceptance Model to Predict Mobile-Based Money Acceptance and Sustainability: A Multi-Analytical Structural Equation Modeling and Neural Network Approach," Sustainability, MDPI, vol. 11(13), pages 1-33, July.
    12. Muzamil Ahmad Baba & Zia ul Haq & Mohsina Dawood & Kumar Aashish, 2023. "FinTech Adoption of Financial Services Industry: Exploring the Impact of Creative and Innovative Leadership," JRFM, MDPI, vol. 16(10), pages 1-19, October.
    13. Ronald Baganzi & Geon-Cheol Shin & Shali Wu, 2019. "Examining Consumers’ Attitudes toward Gmarket Online Shopping," J, MDPI, vol. 2(3), pages 1-20, August.
    14. Chong Li & Yingqi Li, 2023. "Factors Influencing Public Risk Perception of Emerging Technologies: A Meta-Analysis," Sustainability, MDPI, vol. 15(5), pages 1-37, February.
    15. Frank Sylvio Gahapa Talom & Robertson Khan Tengeh, 2019. "The Impact of Mobile Money on the Financial Performance of the SMEs in Douala, Cameroon," Sustainability, MDPI, vol. 12(1), pages 1-17, December.
    16. Tonuchi Emmanuel Joseph, 2020. "How to Improve Mobile Money Service Usage and Adoption by Nigerians in the Era of Covid-19," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 10(3), pages 31-52.
    17. Gaoyong Li & Xin Zhang & Ge Zhang, 2022. "To Use or Not to Use: It Is a Question—An Empirical Study on the Adoption of Mobile Finance," Sustainability, MDPI, vol. 14(17), pages 1-23, August.
    18. Joanna Ejdys & Katarzyna Halicka, 2018. "Sustainable Adaptation of New Technology—The Case of Humanoids Used for the Care of Older Adults," Sustainability, MDPI, vol. 10(10), pages 1-24, October.

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