The Impact Of Mobile Money Services On Small And Medium Scale Enterprises (SMEs) In Tema Municipality

ABSTRACT

Small and Medium-sized Enterprises (SMEs) “in the developing world are increasingly deploying the use of mobile payment systems to enhance the quality of their services and increase growth. The pace of transformation in the SME sector has caused more micro businesses realizing the potential of using the mobile money services or mobile payment systems in their service delivery. However, there are only a handful of studies on the application of mobile money service for success and growth on SMEs”. The study “aimed at investigating the success factors attributable to the use of mobile money service by SME operators. The study employs the Unified Theory of Acceptance and Use of Technology (UTAUT) which was extended to include other factors to help in predicting the success and growth in SMEs. The study is based on a case study conducted through administration of questionnaires. The data was collected from a sample of 100 SME entrepreneurs in Ghana, particularly in Tema. Analyses of the data revealed that performance expectancy (productivity), effort expectancy (ease of use) of the money mobile service plus its social influence, accessibility, cost, support (facilitating conditions) and security (trust) factors were related to behavioral intention to use and actual usage of the mobile money services by the micro businesses to enhance their success and growth. As part of the success factors, the use of mobile money service by SMEs operators makes them more productive, saves them time, is easy to use, is less expensive compared to banking transactions, need little skills and enable them to accomplish their tasks quickly. Also, the study revealed that the use of Mobile Money Service by SMEs operators is influenced by people, society and the customers they transact with. Also, the study revealed an association between the actual usage of mobile money service and the growth of SMEs. This growth can be seen through the expansion of the small SMEs from a single person run business to multiple employees and to a large enterprise with several branches. Promotion of efficiency in micro transaction or payments, growth in profit in business and finally making transactions faster, cheaper and more secure”.