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University of Glamorgan Prifysgol Morgannwg

Faculty of Advanced Technology M.Sc. Project


ANALYSIS OF THE FACTORS INFLUENCING CONSUMERS INTENTION TO USE MOBILE MONEY IN NIGERIA

Omoye Jasmine Odia

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First Supervisor: Dave Farthing Second Supervisor: Duncan McPhee Year of Study: 2011- 2012 Scheme: Mobile Telecommunications Management

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University of Glamorgan Prifysgol Morgannwg

Faculty of Advanced Technology

STATEMENT OF ORIGINALITY

This is to certify that, except where specific reference is made, the work described in this project is the result of the investigation carried out by the student, and that neither this project nor any part of it has been presented, or is currently being submitted in candidature for any award other than in part for the M.Sc. award, Faculty of Advanced Technology from the University of Glamorgan.

Signed.............. (Omoye Jasmine Odia)

10063323 ACKNOWLEDGEMENTS A special thanks to the Most High God for his special grace, love, steadfastness and strength throughout the school year, and the ability to carry out this thesis. Through his grace I have been able to come this far. My profound appreciation and gratitude goes to Mr Dave Farthing, for the impact he had on this dissertation, his guidance, encouragement and effort on my dissertation. I would not have finished without his help, as his close coaching helped widen my horizon and produce this research. Special thanks also go to Mr Duncan McPhee, for his help during this research and also to my lecturers who had inspired me to undergo this research through taught modules. Special thanks to the best Mum in the world, Mrs.Alice Odia for her full support financially, emotionally as well as prayers throughout my Masters programme. This would never have been possible without you Mum, and may the good lord continue to bless you abundantly and keep you to enjoy the fruits of your labour. A big thank you also goes to my amazing siblings Omonsegho, Nelly and Osatohamhen, thanks guys for the encouragement and prayers throughout this period. Love you guys loads!!! Finally, I wish to say a big thank you to the management team of Guaranty Trust Bank and Pagatech I used in conducting my interview for this research, I thank you for the audience and time given to me. Thank you for your support. My sincere gratitude also goes out to my friends Taj, Seun, Esohe, Isoken, Tope, Tayo, Tinytoes, Mavis, most especially my crazy flatmate Seun, and to all my many friends which I cant mention here, God bless you guys. Thank you all for the support during this period.

10063323 ABSTRACT The proliferation of mobile devices and technologies has brought about the introduction of a number of value added services, new technologies involving mobile transactions, while creating important commerce opportunities ranging from mobile banking to mobile payments. In particular is mobile payments systems, which enables the payment of goods and services using a mobile device (mobile phone), at anywhere and at anytime with the help of Short Messaging Service (SMS). In addition mobile payments removes the limitations of space and time associated with financial activities such as transfer of funds, mobile airtime top-up, payment of goods and services etc. However, it is on this premise that this research investigates mobile money in Nigeria with insights from Kenya, by examining the factors that influence a users intention to use mobile money. The research is based on a questionnaire survey and semi-structured interview. Based on extensive review of literature, this research employs the use of an empirical study and the findings of the research suggest that the five factors examined i.e. perceived usefulness, perceived ease of use, trust, convenience and security/privacy have a great impact on customers perception about mobile money. A relevant theoretical model, which includes the basic concepts of Technology Acceptance (TAM) has been adopted and evaluated, by applying survey questionnaire data collected from mobile money users regarding their perceptions on mobile money. Questionnaires were completed by 59 respondents and two officials were used for telephone interview. The results indicates that predictors of the intention to use mobile money in Nigeria are; convenience, security/privacy, trust, perceived ease of use and perceived usefulness, with convenience being the most significant factor. An evaluation of the Barclays Pingit service was also carried out with non-users, to get their thoughts, before and after using the service. The results from this study contributes to the body of knowledge by demonstrating that, context specific factors such as perceived ease of use and perceived usefulness are influencing users intention to use mobile money. Secondly, it provides useful information to regulators, financial institutions and mobile money providers, to enable them develop and implement appropriate service strategies for mobile money users, which meet their expectations and can in turn lead to increased intention to use the service.

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Table of Contents ACKNOWLEDGEMENTS ..................................................................................................... iii ABSTRACT .............................................................................................................................. iv CHAPTER ONE - INTRODUCTION..................................................................................... 10 1.1 Background .................................................................................................................... 10 1.2 M-Money: A New Channel for Payment Services......................................................... 13 1.3 Problem discussion......................................................................................................... 14 1.4 Research Aims and Objectives ....................................................................................... 15 1.5 Research Questions ........................................................................................................ 15 1.6 Significance of the Study ............................................................................................... 16 1.7 Limitations and Ethical Considerations ......................................................................... 16 1.8 Research Outline ............................................................................................................ 17 CHAPTER TWO - LITERATURE REVIEW ......................................................................... 18 2.1 Mobile Commerce .......................................................................................................... 18 2.2 Mobile Payments ............................................................................................................ 20 2.3 Mobile Money in Nigeria ............................................................................................... 25 2.3.1 Nigerian Mobile Money Stakeholders ..................................................................... 26 2.3.2 Critical challenges facing mobile money in Nigeria with insights from Kenya ..... 28 2.4 Mobile Money Success - Kenyas M-PESA .................................................................. 31 2.5 Mobile Payments in the United Kingdom ...................................................................... 32 2.6 Mobile transaction .......................................................................................................... 33 2.6.1 Technologies for securing mobile transactions ....................................................... 34 2.7 Technology Acceptance Theories .................................................................................. 36 2.8 Summary of the Literature Review Chapter .................................................................. 43 CHAPTER THREE - THE RESEARCH MODEL ................................................................. 44 3.1 Proposed Research Theoretical Framework ................................................................... 44

10063323 3.2. Technology Acceptance Model and Mobile Payment .................................................. 45 3.2.1 Perceived Ease of Use and Perceived Usefulness (PEOU AND PU). .................... 45 3.2.2 Security/Privacy....................................................................................................... 47 3.2.3 Trust ......................................................................................................................... 48 3.2.4 Convenience ............................................................................................................ 49 3.3 Conceptual Gaps ............................................................................................................ 50 3.4 Summary of Chapter Three ............................................................................................ 50 CHAPTER FOUR - RESEARCH METHODOLOGY ........................................................... 51 4.1 Research Methodology................................................................................................... 51 4.2 Methodological Perspective ........................................................................................... 52 4.2.1 Epistemology Perspective........................................................................................ 52 4.3 Research Approach ........................................................................................................ 55 4.3.1 Empirical and the non-empirical approach .............................................................. 55 4.3.2 Quantitative and Qualitative approach .................................................................... 56 4.3.3 Research Hypothesis................................................................................................ 57 4.4 Research Design ............................................................................................................. 57 4.4.1 Research Strategy .................................................................................................... 58 4.5 Data Collection methods ................................................................................................ 59 4.5.1 Questionnaires ......................................................................................................... 60 4.5.2 Semi - Structured Interview ..................................................................................... 62 4.6 Data Analysis ................................................................................................................. 63 4.7 Ethical Consideration ..................................................................................................... 64 4.8 Summary of Methodology chapter ................................................................................. 65 CHAPTER FIVE - DATA PRESENTATION AND ANALYSIS .......................................... 66 5.1 Analysis and Interpretation of Quantitative data............................................................ 66 5.1.1 Demographic and Descriptive Analysis .................................................................. 66 5.1.2 Results from Questionnaires .................................................................................... 68

10063323 5.2 Analysis using TAM constructs. .................................................................................... 70 5.2.1 Cronbachs Alpha Test of Reliability ...................................................................... 70 5.3 Testing the Hypothesis ................................................................................................... 77 5.4 Cross Tabulation ............................................................................................................ 84 5.5 Regression ...................................................................................................................... 84 5.6 Summary of findings and analysis chapter .................................................................... 85 CHAPTER SIX - FINDINGS AND DISCUSSIONS ............................................................. 86 6.1 Exploring the Hypotheses .............................................................................................. 86 6.2 Analysis and Discussion of Qualitative data: Interview Results.................................... 90 6.2.1 Participants Description ........................................................................................... 90 6.2.2 Interview process and discussion ............................................................................ 91 6.3 Summary of discussion chapter...................................................................................... 97 CHAPTER SEVEN - AN EVALUATION OF BARCLAYS PINGIT ................................. 98 7.1 Making a payment using Pingit ...................................................................................... 98 7.2 Pilot Test with the Pingit Service ................................................................................... 99 7.3 Summary of the Evaluation Chapter ............................................................................ 101 CHAPTER EIGHT - CONCLUSION AND RECOMMENDATIONS ................................ 102 8.1 Research Limitations and Suggestion for Future Studies ............................................ 103 8.2 Managerial Recommendations ..................................................................................... 105 REFERENCES ...................................................................................................................... 106 APPENDICES ....................................................................................................................... 127 APPENDIX I REQUEST FOR INTERVIEW ................................................................ 127 APPENDIX II - SEMI STRUCTURED INTERVIEW QUESTIONS .............................. 128 APPENDIX III: DESCRIPTION OF PARTICIPANTS.................................................... 129 APPENDIX IV QUESTIONNAIRE ............................................................................... 130 APPENDIX V DESCRIPTION OF THE QUESTIONS PERTAINING TO EACH CONSTRUCT IN THE QUESTIONNAIRE AND THE SOURCES ............................... 134

10063323 APPENDIX VI - TABLES FOR QUESTIONNAIRES .................................................... 136 Table 1: Descriptive Statistics for Demographics .......................................................... 136 Table 2: Mean and standard deviation for Constructs .................................................... 136 Table 3: Frequency Table for How long have you been using mobile money ............ 137 Table 4: Frequency Table for I use mobile money for ................................................ 137 Table 5: Frequency Table for I would like to use mobile money for .......................... 137 Table 6: I find mobile money easy to use ....................................................................... 138 Table 7: Sending SMS is easy ........................................................................................ 138 Table 8: The registration process for mobile money is easy .......................................... 139 Table 9: I find m-money a useful way to make payments.............................................. 139 Table 10: Mobile money saves time ............................................................................... 140 Table 11: Using money mobile makes it easy to conduct transactions .......................... 140 Table 12: I can completely trust financial institutions ................................................... 141 Table 13: Mobile Network Operators and retailers can be trusted ................................. 141 Table 15: There is no security threat with mobile money .............................................. 142 Table 16: I have assurance of no vague transactions...................................................... 143 Table 17: I am confident my personal data is secured ................................................... 143 Table 18: Mobile money is convenient because my phone is always with me .............. 144 Table 19: Mobile money is convenient because I can use it anywhere and at anytime . 144 Table 20: Mobile money meets my transaction needs ................................................... 145 APPENDIX VII LIST OF FIGURES ............................................................................. 146 Figure 1: Example of M-PESA cash Remittance (Source: Nyaoma, 2010, p.7) ............ 146 Figure 3: Overview of MPESA Service (Source: Hughes and Lonie, 2007) ................. 147 APPENDIX VIII: EVALUATION OF BARCLAYS PINGIT ......................................... 148 APPENDIX IX: CROSSTABULATIONS ........................................................................ 150 Figure 1: Descriptive statistics for Crosstabs ................................................................. 150

10063323 Figure 2: Crosstabulation between Age-range and I would like to use mobile money for ........................................................................................................................................ 150 Table 3: Crosstabulation between Age-Range and Use of mobile money ..................... 151 Table 4: Crosstabulation between age-range and how long have u been using mobile money ............................................................................................................................. 152 APPENDIX IX - CORRELATION ................................................................................... 153 APPENDIX XI REGRESSION ...................................................................................... 155

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CHAPTER ONE - INTRODUCTION This chapter of the research shows the background to the study, its significance, research aims and objectives, research questions, and also outline of the research.

1.1 Background The evolution of mobile devices and wireless technologies has brought about an exceptional effect in the world today, with the ability to communicate anywhere, at any place and at any time. Diniz et al. (2011), stated that mobile technology can be viewed as a payment channel and has developed the possibility for two significant issues to be addressed at the same time; firstly is the demand side, which creates an opportunity for financial inclusion amongst the unbanked population and secondly the supply side which creates opportunities for financial institutions so they can deliver a wide range of services at minimum, mostly to people living in remote areas (Diniz et al. , 2011; Aker and Mbiti, 2010). In a study by Aker and Mbiti (2010), they discussed that the proliferation of mobile devices has also brought about the introduction of a number of value added services, new technologies involving mobile transactions, while creating important commerce opportunities ranging from mobile banking to mobile payments (m-payments), and this was also supported by Must and Ludewig (2010). However, the different payment solutions that can be administered through the use of a mobile device are promising alternatives for countries that are still cash driven, and they are referred to as mobile payment services. The Gartner group (2009) defined mobile payment services as, paying for a product or service through the use of a mobile device and technology, including Near Field Communication (NFC), Short Messaging Services (SMS) and Wireless Application Protocol (WAP). Nevertheless, Dahlberg et al. (2008) argued that mobile payments have brought about an exceptional increase in service opportunities for individuals, businesses, and a countrys economy at large, especially in developing countries, which are currently implementing mobile payment services to aid financial inclusion.

Mobile commerce (M-Commerce) has become a relevant field when discussing mobile devices, which allows users perform transactions any place and at anytime (Knospe and

10063323 Grosche, 2004). The International Telecommunications Union, ITU (2011) estimated that by the end of 2011, there will be over six billion mobile subscriptions which is equivalent to eighty-seven (87%) percent of the worlds population, and is a huge increase in contrast to the 5.4 billion recorded in 2010 and the 4.7 billion recorded in 2009. The figure below predicts the increase in worldwide mobile subscribers from 2009-2016.

Figure 1.1: Mobile Subscribers base Worldwide (Source: Portfolio Research).

Moreso, ITU (2009) added that over sixty-five percent of mobile phones are being used in developing countries in Africa, that is countries with poor infrastructural development, low standards of living and have a wide gap in Information and Communications Technology (ICT) divide (World Bank, 2009). Subsequently, due to these factors, most developing countries are looking into extensive dispersion of mobile communications technology, to make amends for the shortcomings in infrastructural improvements mainly in the economic provisions structure, by coming up with initiatives to Implement global mobile payment systems, with the introduction of mobile money as a scheme for financial inclusion (Must and Ludewig, 2010).

In recent years, mobile cellular subscriptions have become more evenly distributed across Africa. The figure below shows top ten countries in Africa with mobile cellular growth, and can be seen that among the top ten countries, the two most populous countries in Africa; Ethiopia and Nigeria stands out with an increasing number of mobile cellular subscriptions which will have a significant impact on mobile cellular penetration (ITU-T, 2009).

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Figure 1.2: Mobile cellular growth in Africa, a focus on ten countries from 2003-2008 (Source: ITU World Telecommunications/ICT Indicators database).

However, with respect to Nigeria, Corporate Nigeria added that Nigeria outdid South Africa in 2008, and turned out to be the largest mobile market in Africa and by the end of 2010 there were 77,395,332, effective mobile subscriptions in Nigeria, which represents a mobile diffusion rate of 55.3%. They further added that by the 2014, Nigeria is estimated to have over 118million subscribers. NCC (2010) also posits a significant increase in the growth rate of mobile cellular subscriptions, as can be seen in the figure below which details a surge in teledensity in Nigeria between 2000 and 2010. Teledensity is described with reference to mobile technology as, ..the amount of mobile subscribers per 100 inhabitants living in a given area, region or country (ITU, 2009).

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Figure 1.3: Mobile Subscriber Data, 2000 2010 (Source: NCC, 2010)

Nevertheless, Beshouri et al. (2010) opined that over 120 mobile money schemes are being executed in about 70 developing markets (for example, Ghana, Nigeria, Kenya, Tanzania, Uganda, etc). Since mobile money (m-money) is a fairly new innovation in Nigeria, there is a need to carry out a research on the factors that can influence customers intention to use it, as that is the main determinant factor for its growth. In view of the significance of mobile money, the aim of this research is to provide knowledge based on mobile money while analysing factors which influences a customers intention to use mobile money in Nigeria.

1.2 M-Money: A New Channel for Payment Services Mobile payments have never been more valued in any economy than it is today. According to the IFC (2011) report, m-money involves the transfer of cash using mobile phones and is also an innovative method for both individuals and small businesses to transfer money. Hughes and Susie (2007) posits that a mobile money subscriber will be able to commence a financial transaction e.g. the transfer of money, send remittances, make payment for goods and services purchased, without the use of a physical depository which was supported by Mas and Morawczynski (2009). Mobile money service run on a telecommunications infrastructure centred on the Short Messaging Service (SMS) and the funds is conserved by the bank, while the subscribers E-money balance either increases or decreases corresponding to usage (Ayo et al., 2011).

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Mobile money operates without restrictions caused by time or distance, which has posed as a major issue in most developing countries, due to the distance and time it takes residents in rural areas to get to the bank (Mas and Morawczynski, 2009; Hughes and Susie 2007; Must and Ludewig, 2010). In addition, it has aided financial inclusion in developing countries by creating a scenario for the unbanked people to pay bills and transfer funds without using cash. A well-known example is M-PESA which was launched in Kenya by Safaricom in March 2007; M was used to represent Mobile while PESA which was derived from the Swahili language in Kenya stands for Money (Mbogo, 2010). Camner and Sjoblom (2009) further added that Safaricom is a telecommunications service provider, which launched m-money as a scheme for enabling access to basic monetary services for the unbanked populace in Kenya. Some other examples of mobile money services are MTN mobile money in parts of Africa, including Nigeria, WIZZIT in South Africa, Barclays Pingit in the UK, G-Cash in the Philippines, M-PESA by Vodacom in Tanzania, etc.

1.3 Problem discussion This research aims at investigating mobile money in Nigeria with insights from Kenya, and a customers perception to use mobile money service in Nigeria. It would be based solely on the significance of mobile money. However, mobile money has become a focus for most researchers today as it has been used in assisting a number of individuals in rural areas, who have little or no access to traditional financial services. It has also generated high level financial inclusion for countries who have adopted it, such as Kenya. Since low-level financial inclusion is an impediment to the economic development of some countries, the need to develop or adopt mobile money has increased not necessarily for profit, but for financial inclusion (IFC, 2011). Jun and Cai (2001) argued that, a focus on understanding the needs of consumers, has become imperative in a competitive market place, and this has brought about the need for most companies to move from just being product-centric to customer-centric, i.e. focusing more on what the consumers expect from a particular product/service to what is being offered (product). Rao (2011) also added that customers in Africa are in need of a strong e-commerce solution which provides safety measures, ease of access, acceptance, capacity and a global reach, according to Manoj Kohil, Airtel CEO and Joint Managing Director.

10063323 Based on the above discussion, this research work seeks to gain insight into mobile money services, while assessing the factors that influence customers intention to use m-money in Nigeria.

1.4 Research Aims and Objectives The aim of this research is to identify and analyse the factors that influence a consumers intention, to use mobile money in Nigeria. The research objectives are as follows; 1. To investigate mobile payments in Nigeria with insights from Kenya and United Kingdom (UK), including problems affecting its growth in Nigeria. 2. Identify the factors that influence customers intention to use mobile money in Nigeria. 3. To conduct a survey that explores users perceptions regarding mobile money service in Nigeria. 4. To carry out an evaluation of a mobile payment service, with prospective users. 5. To evaluate the results from the survey and draw conclusions. The result of these objectives will facilitate in the investigation of the factors that influences a customers intention to use mobile money.

1.5 Research Questions The following research questions will be considered to guide the researcher during the process of data collection. 1. What are the factors that influence customers intention to use mobile money in Nigeria? 2. Does security/privacy, have an effect on customers intention to use mobile money in Nigeria? 3. Which of the factors is most significant and can influence a customers intention to use mobile money? 4. Has perceived usefulness and perceived ease of use, influenced customers intention to use mobile money in Nigeria?

10063323 1.6 Significance of the Study The significance depicts the necessity of this research, which focuses on evaluating the essential factors which influence customers intention to use mobile money services in Nigeria. It puts into considerations, the issues such as perceived ease of use, perceived risk, perceived usefulness, trust, security, confidence, reliability etc. Subsequently, the outcomes and findings would provide the researcher an insight about mobile money through the form of methodology employed. This research will investigate and reveal areas of concern relating to mobile money in Nigeria and also factors that influences consumers intention to use, by using a relevant theoretical framework, which will aid the service providers in investing suitable time, effort, and money in the improvement and provision of services.

However, the motivation for investigating mobile money in Nigeria is because, research has shown that mobile payment has experienced growth globally, while aiding in financial inclusion and since this is a fairly new service in Nigeria it therefore makes it attractive to use Nigeria as a case study. The introduction of Information Communication Technology (ICT) and the (M-PESA) method of payment through the use of a mobile device in Kenya, has helped changed a lot of business practices, aided financial inclusion and also economic growth (Mbogo, 2010). Kenya is also known to have the most successful mobile payment system, which makes Kenya a vital focus for this research.

1.7 Limitations and Ethical Considerations This study will focus mainly on literature and primary data collected via questionnaire and semi-structured-interviews. The study will be limited to the availability of important resources due to constraints such as time; hence Saunders et al. (2007) suggests a crosssectional time horizon is to be applied. However, since no research is entirely cost-free, there will be restrictions to which materials needed for the study can be obtained (Collis and Hussey, 2009). Saunders et al. (2007) stated clearly that, access to data source determines without doubt the possibility of acquiring both primary and secondary data required for research.

10063323 According to Bryman and Bell (2007), the subject regarding ethics cannot be neglected as they are totally connected to the probity of research and of the subject area involved. Saunders et al. (2007, p.183) stated that ethics is, ....a suitable method used in managing and protecting the confidentiality of the research participants with a manner pertinent in the utmost degree. Therefore, focusing on the necessity for an ethical approach in collecting information needed for this research, the researcher will ensure that data collected will be reliable for research analysis and discussion, as capabilities to take away data and records through the course of the research process will be constricted (Saunders et al., 2007).

1.8 Research Outline This research is divided into Eight Chapters. The first Chapter is the Introduction which identifies an overview of the research statement, the problem under investigation and also research aims and objectives. Chapter Two provides a review of literature of existing ideas, researches already done in the field of mobile commerce and mobile payments relevant to the study and investigates mobile money in Nigeria with insights from Kenya. It also introduces different theories and the technology acceptance model used in the study.

Chapter Three presents the Research Model, that is, the chosen theoretical model and the hypothesis that has been formulated for this research. The Fourth Chapter describes the methodology used in research and also explains the data and data collection methods. The Fifth Chapter presents the findings and analysis of the survey data, and also tests carried out to check the reliability of the constructs and assess relationships between variables. The Sixth Chapter demonstrates well grounded and comprehensive discussion of results from the data collected. The Seventh Chapter presents the Evaluation of the mobile money service carried out with non-users (Prospective Users). The Eight Chapter draws conclusions, recommendations, limitations and directions for future studies.

10063323 CHAPTER TWO - LITERATURE REVIEW This chapter reviews existing literatures relating to mobile payments, with reference to Ecommerce and M-commerce and investigates mobile money in UK, Nigeria with insights from Kenya. It also presents the theoretical background for the study and was created with the literature review relating to technology acceptance theories.

The banking industry has affirmed the major obstacles in the implementation of consumer associated electronic commerce to be information privacy and security. Therefore, it would discuss some characteristics of mobile transactions, the technologies used in securing mobile transactions, including enabling technologies.

2.1 Mobile Commerce Mobile commerce is a relevant field associated with mobile devices, that allow users perform transactions anywhere and at anytime (Knospe and Grosche, 2004). However, prior to Mcommerce, was Electronic commerce (E-commerce) and it emerged with the development and growth of communication technologies and the internet. Therefore, according to Knospe and Grosche (2004, p.325), E-commerce can be described as a selling process on the internet that involves the exchange of goods and services. In another study, Chaffey (2007) argued that e-commerce can be related to all electronically mediated transactions e.g. facsimile, electronic data interchange (EDI), the internet, etc. On the other hand, Kalakota and Whinstone (1997), defined various perspectives of e-commerce as; a communication point of view (whereby information delivery or payment is carried out electronically), business process point of view (involves the application of technology towards the computerization of business transactions), business point of view (has to do with delivering quality service) and the online point of view (making purchases and sales online). Moreso, mcommerce entails wireless e-commerce, which employs the use of a mobile device to get access to the internet and involves business to users or business to consumers. M-commerce can therefore be described as a subset of e-commerce, and due to the presence of mobile devices, mobile commerce services has a promising prospect. According to Knospe and Grosche (2004, p.326), m-commerce can be defined as a process whereby,

10063323 a mobile phone is used for business transactions and performed over a mobile telecommunications network, probably involving the transmitting of monetary values. Veijalainen et al. (2003, p.230), Au and Kauffman (2008) and Mallat (2007) also define mcommerce as, a form of business transaction of an economic value that is conducted using a mobile terminal that communicates over a wireless telecommunications or Personal Area Network with the e-commerce infrastructure without limitations to time and space. Mylonopoulos and Doukidis (2003) extended the definition, by considering the sociotechnical nature of m-commerce and argued that it can be looked into as an association, among a variety of parties that consists of the individual technology providers, appropriate business models and mobile devices, while focusing on the consumer-centric part and not just to be described in relation to technology. Similarly, Balasubramania et al. (2002) argued that, to shun the setbacks of fast technological development, m-commerce ought to be conceptualized independent from its underlying technology. However, a general expression to the definitions above is the fact that a mobile device is being used for communication over a mobile telecommunications network, and examples of mobile devices are laptops, smart phones, personal digital assistant (PDA), net books, etc. M-commerce has aided in a variety of business prospects and increased profits for both businesses and the management, which brought about a change to mobile network operators, in which they now provide a range of value added services, instead of the basic voice services (Hameed et al., 2010 p.7). Some examples include mobile location-based tourism, mobile payments, m-ticketing, etc. Nevertheless, with reference to m-payments, Constance (2001) posits that m-payments will become a successful mobile service which will aid in the continued development of mcommerce, by creating effective payment solutions and this was supported by Lee and Benbasat (2004). Knospe and Schwiderski-Grosche (2004) further listed some features of mcommerce to include; convenience, ubiquity, security and personalization. However, a major shortcoming of m-commerce is that, the loss of a mobile device is inevitable and since they are personalized devices, they often contain private user data that can bring about identity theft.

10063323 2.2 Mobile Payments Mobile payment has experienced rapid growth in recent years, due to the increased convergence rate between mobile telecommunications and the payment industries at large. According to Juniper research (2008), m-payments experienced an increased growth rate from $10million in 2005 to $115million in 2010, due to a rise in a range of different mobile payment schemes and consumer demand. Moreso, recent innovations in technologies and increase in the use of electronic pathway to carry out business transactions, has brought about changes to electronic means of payments, from cash-based payments. This is seen in the extensive use of credit and debit cards for business transactions (Begonha et al., 2002; Coursaris and Hassanein, 2002; Ondrus and Pigneur, 2006).

Likewise, the use of a mobile phone is being integrated into our everyday lives, and can be said to be one of the most thriving consumer products that was ever made (Mahatanankoon et al. 2005). Its functions have also been improved to not just making calls, but also for other purposes such as carrying out transactions, tracking device, music player, etc. Mallat (2007, p.2) defined M-payments as, the use of a mobile device e.g., mobile phone or PDA (personal digital assistant) to conduct a payment transaction in which money or funds are transferred from a payer to a receiver via an intermediary or straight without an intermediary. However, payment in this instance according to Carr (2007), normally involves a direct or indirect exchange of monetary values in return for goods and services between two parties. Mallat (2007) posits that m-payments would enable viable and suitable mobile commerce transactions, to be carried out remotely via SMS, WAP billing, etc. Moreso, Ondrus et al. (2006) argued that, payment transactions are being conducted using mobile handheld devices and this has resulted in increased speed of transactions and convenience to both businesses and consumers. Therefore, in order to avoid mixing up mobile payments and mobile banking, Mallat (2007) proposed that mobile banking is made up of banks, whose main aim are to provide banking services to their customers through the use of banking infrastructures by employing the use of a mobile device, while m-payments are payments carried out through the use of a mobile device and also categorized by competing banks, competing mobile network operators, customers (both the banked and unbanked) and mobile money retailers (merchants). Participants that exist within the value chain are able to benefit from the wide-

10063323 scale operation and adoption of mobile payments, and they include the fiscal sector, mobile network operators, merchants, technology providers and end users as shown in the figure below.

Figure 2.1: Mobile payment service value chain (Source: Smith et al., 2010)

According to Innopay (2010), m-payments for financial institutions would be a prospective scheme for safeguarding the current account, available loan products and preventing further provocation from customers. Similarly, for the mobile network operators, mobile payments serve as an attractive scheme that can be used to incur a return on the financing generated in communications, within the previous two decades, as a result of additional expense, associated returns and the rise in air time and data use (Smith et al., 2010).

Consequently for merchants, Dahlberg et al. (2008) added that, the Point of Sale (POS) mobile payment permits the provision of quicker output at the checkout and the capacity to relay messages in real time to the consumer. In addition, remote mobile payments are attractive schemes for merchants, as they are another form of channel that can be used, if it can be used to achieve a large scale impact than existing channels. However, from the endusers point of view, the mobile phone has realized permanent share of pocket i.e. it is the object which is likely to be always be with the consumer just like the keys and wallet, (Innopay, 2010), which makes consumers satisfied with the mobile device performing one or more function at a given time. In addition, they allow for divergence into different aspects of

10063323 the end users wants. Therefore, the benefits and prospects provided by m-payment seem clear for all parties involved. Furthermore, Kadhiwal and Zulfiquar (2007), discussed types of M-payment as; Account based payment systems (which include the mobile phone based payment systems, smart card payments systems, and credit card payment systems), POS (Point of Sale) payments systems (consists of automated POS payments and attended POS payments) and Mobile wallets and is described in the table below;

Table 2.1: Mobile Payment Classification (Source: Juniper Research)

However, when discussing m-payments, the services offered could be confused to mean another, due to lack of clarity on the independent variables in the system. The figure below describes the main entities involved in a mobile transaction from a users perspective.

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Figure 2.2: Entities involved in mobile transactions (Source: Noribo technologies).

Nevertheless, Au and Kauffman (2008) added that since e-commerce organizations tend to accomplish reasonable benefit through the delivery of mobile payment services to the end users, the need to focus on issues which relate to the customers intention to use mobile payment is imperative to the researcher, since it can be useful to financial institutions, payment service providers, in providing an understanding to the key factors that influences a customers intention to use (Lim, 2007; Dahlberg, Mallat and Oorni, 2003). Similarly, studies have shown that consumers zeal to use mobile payments in carrying out transactions has increased, with a prediction for mobile payments business to be $55 billion as at 2008 (Dewan and Chen, 2005; Kreyer et al., 2003; Lev-Ram, 2006). In another study Juniper Research (2008), stated that the value of payments carried out using a mobile phone for digital commodities (e.g. songs and games) and material commodities (e.g. offerings and books), is estimated to go over $300 billion by 2013. The penetration rate of m-payments changes significantly from country to country (Ainin et al., 2005; Au and Kauffman, 2008; Humphrey et al., 2006). A number of urbanized countries principally in Europe and around Asia e.g. South Korea and Japan, own developed mobile payment systems, in contrast to the

10063323 United States of America that has a small acceptance and practice, due to a large non cash infrastructure (53% of their payments is card based and only 36% is paper based i.e. cash and check) (BIS, 2004; BIS, 2006; Jonker, 2003; Foster et al. 2009). A good instance of a thriving m-money service in a developed nation is the implementation of Octopus card in Hong Kong, which is being used in communal transport systems, and has a market infiltration rate of 70% in a city of over 7 million people. Examples of payment schemes that has recorded huge growth are Moneta, ZOOP in South Korea and K-merce (Chau and Poon, 2003; Ondrus et al., 2006).

Similarly, a number of emerging nations have also been notable for an enhanced infiltration of mobile payment systems, in particular the m-money service, an example is M-Pesa in Kenya which still stands out as the most successful (Camner and Sjoblom, 2009; Hughes and Susie, 2007; Mas and Olga; 2009). In spite of the achievements in most emerged and emerging countries, Dahlberg et al. (2008) argued that m-money diffusion is at its minimum in various parts of the globe, with failed attempts recorded in others. Paybox and Simpay are examples of mobile payment services that have been stopped in some areas of Europe, due to very small customer acceptance rate and disparity that exist amongst the different providers (Mallat, 2007). Despite the fact that preceding research suggest a common interest among consumers in the use of mobile payment applications (Dewan and Chen, 2005; Kreyer et al., 2003), the early acceptance rate of mobile payments has however been on the decline (BIS, 2004). This has brought about the need for a deeper understanding with regards to consumers expectations in relation to payment systems, to guide future developers of mobile payments systems (Van Hove, 2001).

Furthermore, a number of studies have been carried out with reference to the enabling technologies needed for mobile payments systems (Vilmos and Karnouskos, 2003; Ramfos et al., 2004). The main security of network services used for m-commerce, according to Kadhiwal and Zulfiquar (2007) are; Wireless Application Protocol (Including the WAP identity module for additional security), SMS (Short Messaging Service), USSD (Unstructured supplementary Service Data, Intelligent Networks (GSM, GPRS, 3G, LTE), smart cards and SIMs/USIM (Subscriber Identity Module/Universal Subscriber Identity Module) application toolkit. They are important in addressing factors such as secured validation on mobile devices, secured communication infrastructure for wireless payments,

10063323 permits consumer and retailer authentication data that is confirmed together with payment transactions and virtual wallets contained on a mobile phone (Kadhiwal and Zulfiquar, 2007). McKitterick and Dowling, (2003) also argued that the average mobile phone can transmit data using voice, USSD, SMS and also inbuilt internet connection (GSM, GPRS, 3G, etc) and they can be used to implement mobile payment solutions.

However, for the purpose of this research, the SMS is of utmost importance. SMS is a form of data service offered by GSM networks and is limited to 160 characters in most mcommerce scenarios. The receiver and sender of SMS can be identified using its IMSI, which cannot be penetrated by an attacker and this makes SMS messages suitable for authentication (Kadhiwal and Zulfiquar, 2007). (Schiller, 2003 and Mitchell, 2004) further discussed that SMS data is sent out in the GSM signalling plane, to guarantee privacy of communication between recipients. Consequently, Au and Kauffman (2008) discussed that the use of SMS technology has altered the social communications between the young populace in various parts of the world and as well aided in the delivery of payment transactions by businesses e.g. PayPal mobile, Barclays Pingit, and M-Pesa. Moreover, it is used by Mobile Network Operators (MNOs) to carry out m-money transactions in developing countries (Hughes and Lonie, 2007).

2.3 Mobile Money in Nigeria Increased expansion of m-money businesses in developing countries like Kenya, has established indication of the necessity to employ same approach, in order to offer low financial cost services in Nigeria, particularly to the unbanked population. According to IFC (2011), majority of the population in Nigeria lack access to basic financial. Studies shows that only 25% of the Nigerian populace have an account or access fiscal services, since it is a cash-driven society, and in addition most financial institutions are located in commercial centres and capital cities, which limits access to those in rural areas.

Hence, the introduction of mobile money (m-money), where Vanguard (2012) stated that mobile money is a person-to-person (P2P) form of payment that is performed through a mobile phone for the purpose of conducting financial transactions. CBN (2011) added that it is a strategy, intended to achieve financial inclusion for the unbanked population. It is the

10063323 newest electronic banking innovation, and a revolution changing the lives of millions across the globe (Uzor, 2011). It is also expected to benefit many sectors of the Nigerian economy which would aid in financial inclusion and also economic growth. P2P payments are forms of money transfers (remittance) from one person to another (e.g. between relatives), through the use of a mobile wallet and according to World Bank, Nigeria is the largest receiver of remittances in Africa mostly from the United Kingdom (Hernandez-Coss and Bun, 2006).

Nevertheless, Nigeria is a highly fragmented economy with no national retail network, with a challenging mobile money market, due to the distrust of both the mobile and financial sectors among the populace (IFC, 2011). However, the m-money service in Nigeria has an open scheme, whereby the sending of funds between the sender and the recipient is likely to be a flawless one. This is as a result of the regulatory framework implemented by CBN, where the lead role in providing the service is given to the financial institutions (Ayo et al., 2012)

Consequently, Uzor (2011) added that mobile money operators are rolling out innovative solutions to the unbanked communities, which is geared towards providing financial inclusion in Nigeria. This was as a result of CBNs issuance of operating licences to eleven (11) mobile firms which include; Fortis money, UBA/Afripay, GTBank Mobile money, Pagatech, eTranzact, Paycom, Monitise, Eartholeum, Ecobank, FET and Kudi. CBN further created a cautious attitude where mobile network operators are not allowed to be the lead initiators in m-money projects, instead they must partner with financial institutions (IFC, 2011). Coker (2012) further added that the licensed firms so far, have evidence of 35,971 transactions which is estimated at N227.92m ($1.4m) in January 2012, and should increase geographically as its recognition increases. Governor of the Central Bank of Nigeria (CBN), Sanusi Lamido, said the system was introduced to reduce the unbanked population put at over 80million, aid the cashless economy programme and bring abundant benefits to stakeholders.

2.3.1 Nigerian Mobile Money Stakeholders The stakeholders in Nigeria responsible for m-money services include customers/end users, MNOs, financial institutions or banks and the government. All the listed stakeholders above possess different interest regarding the service, some which poses as a conflict amongst them.

10063323 Consumers involved with m-payment services are worried about security, convenience and reliability, where Lao and Liu (2011) stated that the number of consumers of a particular service determines how successful the service is. However, to fulfil the needs of consumers, payment systems ought to be fast, reliable, secured and convenient. For the service providers, they utilize the infrastructures of the Scheme Operators to provide services to the end users and the participants involved in this aspect include the Telecommunication Companies and Independent Service Providers (CBN, 2010). Lao and Liu (2011) posit that the functions of the mobile network operators include setting up a mobile payment service platform, provision of a secure communication channel, and generating a range of services that meets the demand of consumers. They further discussed that it represents a vital part of the organizations chain, and a very significant gap among financial institutions, consumers and service providers (Lao and Liu, 2011). Nevertheless, with regards to the financial services structure, CBN (2011) stated that Nigeria currently has twenty-four (24) banks with a total of 5,124 branches. However, with the number of branches available, the financial institutions are still not adequate enough to serve the countrys population which is estimated at 162.47074 million (World Bank, 2012). Moreso, a major issue that is being faced is the general distrust consumers have towards financial institutions, as a result of their preceding records. Where IFC (2010, p.1) stated that,

...The financial sector is still on the road to recovery, from the disintegration of a number of banks in 2009furthermore, communications infrastructures between banks (including ATM) are perceived to be unreliable. Therefore, the introduction of m-money in Nigeria will present a positive substitute for the implementation of money transfer services and aims at contending with the bank distrust problem, in view of the fact that the present regulatory framework in Nigeria permits the banks to instigate m-money evolvement. However, the current regulatory framework according to CBN (2012) requires the financial Institutions to be responsible for the provision of all financial services, for the operation of the service and also ensure verification, approval and guaranteed creditability and integrity of the partner organization. Furthermore, Moerane (2012) listed the responsibilities of the financial institutions to include; Seek and obtain approval from the central bank.

10063323 Ensuring that the mobile payment solution complies with the specified standards as stated in the mobile payment regulatory framework. Putting in place appropriate methods in order to ease the risks that could occur from the deployment and use of its mobile payment solution. To educate the customers on how to use service. To recruit, train, and manage the agents needed to market the service.

2.3.2 Critical challenges facing mobile money in Nigeria with insights from Kenya A major challenge affecting mobile money in Nigeria is the regulatory framework, where CBN (2011) posits that it was developed to conform to international best practice and standards. It also specifies the necessary functionalities expected of any mobile payment service in Nigeria. The regulatory framework in Nigeria applies to all activities of the participants involved in the provision of mobile payment services which include; service providers, infrastructure providers, solution providers, scheme operators and consumers (CBN, 2011). In contrast to Kenya, the regulatory framework between both countries can be described as two extremes fields, Where Nyaoma (2010), posits that Kenya has an open and controlled regulatory environment, while Nigeria has a restricted regulatory environment. In Kenya, Safaricom launched M-Pesa m-money service with no pre-existing regulation guiding its operation and executives from Safaricom who helped manage the development stated that,

M-Pesa is a form of E-money service which is new to Kenya, due to this fact; there are no clear regulations in place. Nevertheless, it was impressive how quickly the regulators questions progressed....But we had our homework done and eventually the regulator confirmed that it had no objection to the service launching. Ten days after receiving this letter, we launched (Hughes and Susie, 2007, p.80).

In view of this, it can be seen that the set of laws for m-money in Kenya originated from the commencement of M-Pesa. However, the regulations in Nigeria limited the MNOs solely as a communication path through which m-money services can be routed (IFC, 2011). CBN (2009) stated in its guidelines, that Telecommunications Company shall provide the network infrastructures for the use of m-money scheme and also make available its network scheme

10063323 without discriminatory practice. Mas (2012) also argued that, the policies pertaining to the security and reliability of m-money about whom should issue accounts, conditions of service, data security and privacy standards, supervisory treatment, consumer protections, is kept within the domain of the banking regulator. Besides, authorities also need to address the various parts of mobile communication services, which the MNOs have restricted access to and are necessary for providing mobile financial services. An example is the SIM card; it contains pre-loaded security keys used to execute end-to-end data encryption from the mobile phone to the transaction approval server.

Furthermore, regulations guiding m-money in Nigeria proposed three specific models to the m-money service, and according to CBN (2011), they include a bank-focused model where the financial institutions are the lead initiators of the service, a bank-led model strictly driven by banks and supported by its technology partners, and the non-bank led model driven by corporate organizations, but with a level of bank control. The role of the MNOs is basically the provision of the telecommunications network to drive the service. According to IFC (2011) report, CBNs choice to limit the role of the MNOs and is due to.

...Its desire to restrain particular companies from monopolizing the m-money sector, as was the case with Safaricom in Kenya. Also, with a series of upheavals in the financial services sectors, the CBN is concerned MNOs will merge airtime with cash, and not provide the security to deposit holders that they would find in a regulated banking environment (IFC, 2011, p.19). This framework proposed by CBN shows quite a few inferences for m-money implementation in Nigeria, and relates to firstly, the support of the MNOs. This puts the MNOs role for m-money at its least and with this IFC (2011, p.1) stated that, ...Allied with their experience, operating agent networks and their success at targeting the base of the pyramid, there is little incentive for MNOs to act only as a communications channel. As a result, all MNOs in Nigeria have expressed little interest in acting as a communication channel, and are holding out for a change in regulations. Secondly, the existing system operators in Nigeria do not have the extensive agent networks accessible to MNOs. Where Okoegwale (2011) stated that,

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...Rock-solid schemes need to be put in place towards building a robust and successful agent network across the country by the operators. M-Pesa in Kenya was successful due to its robust agent network and there are currently over 22,000 M-Pesa agents and over 90 per cent of the agent networks are owned by Safaricom. In addition, the extra cost of SMS fees is another issue for consumers, if the MNOs where to operate as a communication channel, their usual charges for the SMS becomes applicable, which is in contrast to Safaricom in Kenya where M-PESA operates on an existing framework. In developing a service to consumers, which is centred on providing financial inclusion to the economy, will consumers pay the extra price in addition to the normal applicable transaction fees? (Okoegwale, 2011). The above question is a major concern in Nigeria. Notwithstanding the disparity that exists in the regulatory frameworks, both countries also share a number of similar regulatory requirements, like the limitation on cash transaction limit, e-money account opening requirements also referred to as Know Your Customer (KYC) to curb money laundering, transaction security and integrity, etc. (CBN, 2009; Mas and Radcliffe, 2010). However, the elimination of the MNOs from active involvement should be looked into by the regulators, if the rapid development of m-money is expected, as their involvement in retail payments has been proven to present competitive challenges which the banking industry (Mas, 2012). He further discussed the concerns that, the MNOs may transfer market power from their main market, to the up-and-coming retail mobile money market, in a way that banks might be shut out of mobile money (Mas, 2012). The table below describes the current regulatory framework by CBN (2012), which consists of three major models which include the bank-focused (where the financial institutions are lead initiators), bank-led (where the financial institutions and consortiums are the lead initiators) and the non bank-led (where the corporate organization is the lead initiator).

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Table 2.2: Nigeria Regulatory Framework: Models and Service (Source: Moerane, 2012).

Therefore, review of literatures (e.g. eTranzact/IFC/MTN, 2011, IFC, 2010), further stated that the regulatory framework can be described as a key factor, impeding the growth of Mobile Money in Nigeria.

2.4 Mobile Money Success - Kenyas M-PESA According to Ayo et al. (2012), M represents mobile and PESA for money in Swahili, in regards to M-PESA, and is a type of electronic payment system available via the use of mobile devices and was developed by mobile phone operator Vodafone. In another study Ayo et al. (2011) discussed that, MPESA was launched in March, 2007 by Vodafones affiliate, Safaricom which was Kenyas major mobile service provider. It allows direct electronic transfer of money from a mobile telephone number to another. They also added that M-PESA offers realtime money transfer, through the use of a mobile device and supports urbantorural remittances. Customers are able to carry out a number of transactions such as check their account balance, make deposits or transfers, send call credits to other users, etc as seen in Figure 3 (See Appendix VII). Fengler (2012) stated that, Kenya has become the worlds leader in mobile payments and IFC (2011), also added that Kenya is the most successful developing country for m-money usage, since more than 80% of the population, of

10063323 cellphone users use the payment system. However, with the population of mobile money users in the world at over 60million, Kenya can be said to have one in three of the users (Fengler, 2012). In addition, he discussed that there are three main reasons for the growth of mobile money in Kenya and they are; Firstly, the regulators supported and encouraged MPESAs launch by providing minimum requirements to mobile agents, as they do not offer banking services. Secondly, the mobile network operator Safaricom also played an important role, and they focused in building a trade name rather than in generating revenue and thirdly the management of Safaricom understood that the success of the mobile payment system lies in good management and the people as a whole and not just on the technology (Fengler, 2012).

Furthermore, Ignacio et al. (2010) discussed that, for customers to be able to employ the use of the service, they have to register with an official M-PESA retailer, whereby each registered user would be allocated a personal electronic money account linked to their mobile telephone number, and reachable through a SIM card on their mobile devices. Nevertheless, Safaricom estimated M-PESAs customer base to be about 6million people, with figures for person-2person transfers (P2P) to be over $1.6billion (Hughes and Susie, 2007; Mas and Morawczynski, 2009). This has created a significant amount of jobs for people who operate as m-money agents, and to reiterate the writing of development economist guru Jeffery Sachs, the mobile phone is gradually becoming a transformative tool for growth in Africa (The Economist, 2009). Furthermore, as a result of the achievement recorded in Kenya for banking the unbanked populace, m-money services was therefore increased to include microfinance services, and at the same time driving the huge remittance market in developing countries including Nigeria (Hughes and Susie, 2007; Mas and Morawczynski, 2009; Must and Ludewig, 2010). Figure 1 (See Appendix VII) describes M-PESA cash Remittance.

2.5 Mobile Payments in the United Kingdom The Payments Council in the UK are currently taking necessary steps, in making payments simply through the use of a mobile phone number possible for everyone (Payments Council, 2010). They added that, the database will be available to UK banks and building societies before the end of 2012, as a platform for them to implement their own competitive service.

10063323 There exist different mobile payment systems in the UK, for example, PayForIt, Barclays Pingit, etc. However, for this research the focus would be on the Barclays Pingit service. Barclays launched its own mobile payment service, Pingit in February, 2012 in the UK and can be seen to have recorded huge successes. However, with the aim of benefitting from Kenyas increasing remittances, Barclays launched the Pingit service in Kenya in September and with this, Kenyans in Diaspora can send money back home at no extra cost (Mulupi, 2012). Mulupi (2012) further added that, Barclays chose Kenya due its success rate, and can be seen to have generated about $600 million in remittances in 2012 (Central Bank of Kenya, 2012). Adan Mohamed, Barclays regional managing director for East and West Africa stated that, from this perspective, the launch of Barclays Pingit in the Kenyan market is an affirmation of the countrys growing relevance in the international financial market. It can therefore be seen that Kenya is experiencing huge growth globally and Barclays also intend to launch Pingit in Botswana, South Africa, Zambia, Tanzania, Ghana, Egypt, Zimbabwe, Uganda, Seychelles and Mauritius by the end of 2012.

2.6 Mobile transaction According to Shi (2004), mobile transaction can be defined as a, ...type of transaction submitted from a client (mobile or fixed) to server (mobile or fixed). However, customers need to be guaranteed of the security and privacy of m-commerce infrastructure, so as to ensure continued use of the services being offered. Nambiar et al. (2004) stated that a mobile transaction should have the subsequent characteristics, which includes authentication, confidentiality, non-repudiation and integrity. Shi (2004) posits that authentication is a process of verifying the identities of individuals concerned in the payment transaction, to ensure they are genuine. There are two forms of authentication which include; Entity authentication (which entails confirming the identity of the communicating individuals) and Data authentication, which relates to the source of the data received (Mitchell, 2004). Merz (2001) suggests that confidentiality is imperative in the characteristics of payment transactions, as it ensures that transactions cannot be accessed by unauthorized persons and this also guarantees that just the correspondent and beneficiary can access the data (content).

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In addition, Mitchell (2004) also added that non-repudiation has to do with the service offered to the correspondent of the data, in order to ensure that the parties involved in the process do not proclaim they did not participate (Mitchell, 2004). Shi (2004) further added that integrity is ensuring that the data involved is in its original form, i.e. has not been altered in any way, and it also refers to the ability of the receiver to perceive if the data has been altered in any form. The figure below describes the different phases of mobile transactions, where the transaction process starts from the consumer, through the content provider who sends the purchase request to the service provider e.g. bank or Credit Card Company and they in turn bill, the customer for the transaction made.

Figure 2.3: The Phases of mobile payment transactions (Kadhiwal and Zulfiquar, 2007).

2.6.1 Technologies for securing mobile transactions The mobile security technologies used for a wireless link between consumers and access networks are; Public Key Infrastructure (PKI), Subscriber Identity Module/Universal Subscriber Identity Module Application Toolkit (SIM/USIM), Wireless Application Protocol (WAP), and Near Field Communications Technology (NFC). According to Nambiar et al. (2004), PKI is. a system of digital certificates, certification authorities and other registration authorities that provides solutions to enable a secure mobile commerce.

10063323 Similarly, Raina and Harsh (2002) argued that PKI can be described as the only technology that provides authentication, confidentiality, data integrity and non-repudiation, and is characterized into firstly the Public Key Cryptography. The Public Key Infrastructure is based on an open key cryptography and uses two key types; a secret and a public key, which is centred on using asymmetric pair of keys. Mitchell (2004) suggests that the private key technique is noted on the fact that the correspondent and the intended beneficiary share a secret/private key, before they communicate with each other. The public key on the other hand can be revealed openly, and each user has one or more pair of keys. PKI augments security and is used by parties who are known to each other (Raina and Harsh, 2002). Secondly is Digital Signatures, which is referred to as electronic signatures. It is genuine, cannot be forged or reused and is non-repudiable. Enciphering a document which is subject to signing with the secret key creates digital signature that can be verified by deciphering the enciphered document, with the public key (Lim and Siau, 2003). Thirdly is the Secret Key Technique, in this case the correspondent and beneficiary allocate a secret key before sending data across to each other (Raina and Harsh, 2002). The shared secret key is used to perform various cryptographic operations, for example, encryption and decryption of data, which is based on the use of symmetric techniques (Mitchell, 2004). The secret key technique is still being used for verification, since they are computationally fast in contrast to the public key technique. In addition, Mitchelle (2004) discussed that, communications systems in recent times, provide access to services, based on the type of subscription the consumer has with the service provider. A few security protocols employ the use of PKI, which are used in the provision of end to end security by applications in a mobile environment. An example is the Wireless Application Protocol (WAP), used to describe terms for access to internet data and services, with the use of wireless devices (Lim and Siau, 2003). Subsequently, according to Knospe and Schwiderski-Grosche (2004), the SIM/USIM application toolkit permits mobile network operators to create applications which reside in the SIM/USIM. The applications can be used to transmit and interpret SMS strings. Security mechanisms that is found to be associated with SIM toolkit are authentication, message integrity and message confidentiality, proof of execution with receipt and indication of the security mechanisms used (Knospe and Schwiderski-Grosche, 2004).

Furthermore, NFC transactions are carried out with a wave from an NFC enabled device over a short distance of less than five centimetres, and its application has made life easier and

10063323 more convenient for users (Mantoro et al., n.d.). It is a short range RFID communication technologies, centred on 13.56MHz radio frequency, standardized in ISO 18092 and offers two way interaction (read and write) with simplicity in user authentication (Giesecke and Devrient, 2011). NFC is based on secure chip modules used to authenticate the user to the service provider.

2.7 Technology Acceptance Theories Technology acceptance research is a continuous evolving field, as innovative technology evolves everyday (Al-Qeisi, 2009), which has motivated information system researchers to develop a number of theoretical framework that attempts to predict the acceptance of a new technology. The technology acceptance model (TAM) which was proposed by David (1989), is one of such frameworks that has been used for predicting intentions to adopt new innovations. Ideally, a model that is useful not only for prediction but also explanatory is required by researchers, to enable them identify why a system is classified unacceptable, in order to develop corrective measures for that particular system to be acceptable. This

research will employ the use of TAM with additional constructs relating to mobile payments, to determine factors that influence a customers intention to use mobile money in Nigeria.

The Theory of Reasoned Action (TRA) showing the association that exists between the attitude and the intention to use a specific technology, could be a predictor of its future adoption (Ajzen, 1975). The TRA developed by Ajzen (1975), starts by examining the meaning of attitude, procedures for measurement and its role in predicting human behaviour. The basic features of the model is shown in figure 2.4, where there are four main constructs which are Attitude Towards Behaviour, Subjective Norm, Beliefs and Evaluation and Normative Beliefs and Motivation to Comply. Mirusmonov and Kim (2010) cited in Fishbein and Ajzen (1975) while explaining the Theory of Reasoned Action (TRA), that TRA is a framework used to depict user behaviour from a social psychologys point of view, while providing a clarification and identification of the determinants of computer acceptance (David et al., 1989). Ajzen (1991) further posits that it is the theoretical foundation of the Theory of Planned Behaviour (TPB), Technology Acceptance Model (Davis, 1986) and the Unified Theory of acceptance and Use of Technology (UTAUT) (Venkatesh et al., 2003). However, TRA attempts to explain user behaviour, while an individuals act of specied

10063323 behaviour is established by his or her behavioural intention (BI) to perform (Mirusmonov and Kim, 2010). It is a significant model that has been used as a foundation for additional improvements (Venkatesh et al. 2003).

Figure 2.4: Theory of Reasoned Action (Source: Fishbein and Ajzen, 1975).

In addition, another model that has been used to describe acceptance of information systems is Rogers (1983) Diffusion of Innovations (DoI) or the Innovation Diffusion Theory (IDT). He projected five characteristics of an innovation that influences customers behavioural intention as relative advantage (the degree to which it is perceived to be better than what it supersedes), compatibility (consistency with existing values, past experiences and needs), complexity (difficulty of understanding and use), trial ability (the degree to which it can be experimented with on a limited basis) and observability (visibility of its result) (Rogers, 1983). The DoI theory is mainly associated with the way a new technological scheme develops from initial development until when it is being used (Rogers, 2009). Despite the fact that TAM and DoI focus on usage as the primary outcome of the acceptance procedure, DoI goes further, by explaining the different variety of usage and continual usage (Rogers, 1983). It is mostly used in studies, when trying to make a comparison that contrasts and categorize customers that possess dissimilar background factors and attitudes (Rogers, 1995). Moore and Benbasat (1991) included two additional constructs to IDT, with the existing two which is image and voluntariness and the extended model was named, Perceived Characteristics of Innovating.

Researchers have also found that TAM and IDT are theories that can be used in describing information systems acceptance in different contexts, and studies have combined the two approaches but maintaining, the perceived risk variable to describe customers intentions towards innovation adoption. Moreso, TAM and DoI combined, have been employed and

10063323 empirically confirmed in the fields of e-commerce (Agarwal and Karahanna, 1998; Vijayasarathy, 2004) and mobile payment (Wu and Wang, 2005; Chen, 2008).

Figure 2.5: Innovation Diffusion Theory conceptual model (Source: Rogers, 1995).

Nevertheless, TAM on the otherhand is an effective research model used to explain consumers IT adoption behaviour (Davis et al., 1989) and was proposed by David in 1986. David (1989) posits that it is an adaptation of the TRA, which was explicitly modified to model user acceptance of information systems and its main aim is to describe the antecedents of system acceptance, which can explain consumers behaviour across a variety of end-user computing technologies and user populations. Dillon and Morris (1998) defined technology acceptance as,

...the verifiable willingness within a user group to employ the use of information technology (IT) for the tasks it was designed to support. Davis (1989) further posits that the technology acceptance model (TAM) can be described if,

...the success of a system can be determined by user acceptance of the system, measured by perceived usefulness, perceived ease of use and attitude towards usage (ATU) of the system.

10063323 Thus, a system will not be perceived as useful if it is not easy to use and according to the model, a users view regarding the systems usefulness and ease of use, will result in the intention to use (or not to use) the system (Davis, et al., 1989). The TAM has been accepted as an important framework for technology acceptance behaviours in a number of IT fields, and is extensively useful among researchers (e.g. Chang, 2004; Pousttchi and Wiedemann, 2005) of information systems in general. Application of TAM can be found in business, education and information technology (Ventakesh and Davis, 2000). Dash et al. (2011) also stated that the underlying principle of the TAM is due to the fact that, IT users act rationally in their decision to utilize a technology. Davis (1986) posits that the original TAM was proposed with five constructs and they are, perceived usefulness (PU), perceived ease of use (PEOU), attitude toward using a given system, behavioural intention to use (IU), and the actual system use (Ajzen and Fishbein, 2000). However, to determine the process of a customers intention when using a new technology, two belief variables are employed in TAM which is the Perceived Usefulness (PU) and Perceived Ease of Use (PEOU) of the system. These two factors are vital in assessing a users intention, and are proposed in order to verify a consumer's intention to use a technology with intention to use playing the role of intermediary of actual system use (Dash et al. 2011; Mirusmonov and Kim, 2010; Davis, Bagozzi and Warshaw, 1989).

Similarly, Mathieson (1991) further added that the above two factors are measured as the reason for attitudes, towards using a particular system and they are also used to establish a consumers behavioural intention to use (BIU) a system. Drawing from Davis (1989) perceived usefulness can be defined as, the degree to which a person perceives that using a particular system will boost his/her performance, while Davis (1987) defined Perceived ease of use as, the degree to which a person believes that adopting the system will b e free of physical and mental effort. The figure below shows the TAM.

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Figure 2.6: The Technology Acceptance Model (Source: Davis, 1989).

In addition, Hu et al. (1999) discussed that different factor affect initial acceptance of technology, but the major determinants (i.e. perceived ease of use and perceived usefulness) is of importance in determining continued acceptance. Therefore, the actual behaviour should be expected from methods of behavioural intention, and any other factors that influence intention directly or indirectly e.g. attitudes, perceived usefulness, perceived ease of use, and external variables. Perceived usefulness can therefore be said to have an immediate effect on adoption intention, whereas perceived ease of use has both an immediate and indirect effect on adoption intention through perceived usefulness (Davis, 1989). However, TAM and TRA have some differences; Firstly is the subject norm which is not contained in TAM (the influence of social pressures and beliefs), neither does it comprise of any social variables in the model, because it is one of the least understood aspects of TRA and it has vague theoretical and psychometric significance (Davis, Bagozzi and Warshaw, 1989). Secondly, TAM anticipated that perceived usefulness and perceived ease of use are the main key determinants for computer acceptance behaviours, which is in contrast to TRA. Thirdly, the intention to use the technology system in TAM is determined by the attitude towards using the system and the perceived usefulness of the system, but in TRA the intention to use is determined by the attitude towards behaviour and subjective norm. In conclusion to the above stated, TAM is easier to apply and it supplies an all-purpose information on users opinions about a given system (Mathieson, 1991).

Prior research shows that the original TAM by (Davis, 1986) has been adopted and modified in the past to include constructs such as experience, self-efficacy, management support, social norms or social influence, individual differences, technology complexity, etc., and has been

10063323 empirically proven to have high validity (Lu, et al., 2003; Malhotra and Galletta, 1999; Taylor and Todd, 1995; Venkatesh, 2000; Venkatesh and Morris, 2000; Venkatesh and Davis, 1996). This can also be seen in the table below.

Table 2.3: Adaptations of TAM in fields related to mobile payment (Source: Zmijewska et al., 2004)

Subsequently, the original TAM was extended to TAM2 by adding more constructs which focus on social influence, as a factor influencing the key determinants in the original TAM (Venkatesh and Davis, 2000). Following this, the TAM2 was then developed to the Communication Technology Acceptance Model (ICTAM) by adding three constructs, which are compatibility, perceived playfulness, and Website loyalty (An, 2005). This is shown in the figure 2.7 below;

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Figure 2.7: Extended TAM (TAM2) (Source: Ventakesh and Davis, 2000)

Nevertheless, despite the fact that TAM has been extended with additional constructs, the two main elements (perceived usefulness and perceived ease of use) which was in the initial TAM is still currently used as predictors of technology acceptance in many studies (Klopping and McKinney, 2004; Venkatesh, 2000). Venkatesh (2000) also added that, although TAM, TRA, TPB and TAM2 focus on a range of different constructs to explore the consumer behaviour in technology acceptance, they still share some similarities. An example is the attitudeintention-behaviour relationship between TRA, TPB and TAM which is cognitive and in turn has an influence on intention and actual usage (Venkatesh, 2000). Consequently, Szajna (1996) posits that the original TAM can serve as a more appropriate model, that can be used for predicting intentions to use a given information system other than the revised TAM. The end users decision on whether to adopt a particular service determines the success of that particular technology innovation (Lee, 2000). In order words, the original TAM will be used by the researcher as a guide to investigate the factors that influences a customers intention to use mobile money in Nigeria. TAM creates a structure whereby the influence of external variables on system usage, can be measured, which is a major advantage. It can be extended to explore a users intention to use m-payment, since m-payment systems are recent technological innovations. Therefore in order to adopt TAM in this research, it was combined with user-centric factors and three other constructs.

10063323 2.8 Summary of the Literature Review Chapter In view of the present state of studies regarding m-payment, this research therefore aims to ascertain the factors that influence a customers intention to use mobile money in Nigeria, by employing the use of technology acceptance model (TAM). This chapter evaluates mobile payment and mobile payments in the UK, and Nigeria with insights from Kenya. It also includes the challenges currently facing mobile money in Nigeria. It describes mobile transactions and some of the technologies used to secure mobile transaction, and also presents a background to the theoretical framework. The next chapter presents the proposed model that would be used in this research.

10063323 CHAPTER THREE - THE RESEARCH MODEL This section presents the proposed theoretical framework for this research. The research aims to identify the factors, that affects a customers intention to use mobile money in Nigeria and it employs the use of TAM.

3.1 Proposed Research Theoretical Framework The aim of this section is to provide an appropriate framework suitable for investigating a customers intention to use mobile money service in Nigeria. There are different types of theories and models which have been proposed to analyse the acceptance of new technologies, and also assess a customers expectation when employing the use of new technology as discussed in Chapter two. However, for the purpose of this research the technology acceptance model (TAM) would be used. Legris et al. (2003) detected varied results with respect to the constructs in TAM, and posits that they resulted from factors that were not present and left out in experimental settings. Thus, it is essential to take account of other variables that relates to mobile payment, which can be integrated into TAM.

However, review of literatures regarding factors that affect mobile technology acceptance, is likely to benefit from prior research in related fields of study. Lee et al. (2001) employed TAM in their e-Commerce Adoption Model (e-CAM), it was also extended by Gefen et al. (2003). The IADIS International Conference, 2004, Compass Acceptance Model (CAM), by Amberg et al. (2003) also adapted TAM to mobile services. TAM was applied in a study of mobile portals by Serenko and Bontis (2004), Pedersen (2003) also adapted the Theory of Planned Behaviour (TPB) alongside TAM to explain the implementation of mobile parking. In addition, Kim et al. (2010) in comparing people who had used mobile payment services carried out a study based on TAM and IDT. In each of the studies listed above, additional constructs were proposed with TAM to suit the context of the study for that given field, but the initial constructs, perceived ease of use and perceived usefulness were not queried (Mallat, 2007).

Research has shown that mobile payment systems is information technology, and a method whereby customers can make payments so therefore security/privacy can be used as a

10063323 construct. On the otherhand trust and convenience are characteristics of m-payments; therefore it was found necessary to include them in the proposed model. These constructs can be seen in the model proposed shown in the figure below. The next sub-sections details the theoretical framework and the hypotheses proposed for the model.

Perceive Ease of Use


H3

H1

Perceive Usefulness
H5

H2

Security/Privacy
H7

H4

Intention to Use

Trust

H6

Convenience

H8

Figure 3.1: Proposed Research Model Using TAM.

3.2. Technology Acceptance Model and Mobile Payment Mobile payment procedures in principle is information technology, therefore customers intention to use mobile payment services can be assessed using the TAM (Davis, 1989) which makes TAM appropriate for this research. A number of empirical analysis conducted shows TAM to be a strong model used to measure the acceptance rate of a new technology in a broad range of information technologies.

3.2.1 Perceived Ease of Use and Perceived Usefulness (PEOU AND PU). Davis (1989) stated that, Perceived Usefulness (PU) can be described as the measure by which a person believes that using a particular system would enhance his or her job

10063323 performance, while Perceived Ease of Use (PEOU) is defined as, the degree to which a person believes that using a particular system would be free of effort (Davis, 1989, p.320). Davis et al. (1989) further stated that PU and PEOU can influence ones attitude towards using a particular system, which also influences the intention to use the system and in turn decides actual system usage. Several studies have also stated the necessity of perceived usefulness and perceived ease of use for mobile payment acceptance (Dahlberg et al., 2003; Dahlberg et al., 2002; Pousttchi, 2003), and the fundamental reason is that IT users react rationally when they decide to use IT. In addition Jeyaraj et al. (2006), in reviewing technology adoption studies, discovered that among 29 studies carried out from 1992-2003, perceived usefulness is seen to be significant in 26 of the studies. In addition, perceived usefulness is a general construct, functional in previous mobile commerce and mobile payment literatures. Wei et al. (2009) in their study of mobile commerce in Malaysia found perceived usefulness to be positively associated with consumers intention to use mobile commerce in Malaysia.

Nevertheless, like PU, PEOU was adapted from TAM, even though consumers consider the system useful, they could still think it is difficult to use (Davis, 1989). In addition, apart from perceived usefulness, perceived ease of use can likewise be said to be a key significant factor in the acceptance of a number of information technologies, e.g. the intranet (Chang, 2004), electronic banking (Wang et al., 2003) and wireless internet (Shih and Fang, 2004). Similarly, Amin (2007) in his study established the significance of perceived ease of use as a decisive factor, which influences a consumers intention to use mobile credit card transactions. However, despite of the fact that a number of studies have found perceived ease of use a significant factor, some others do not, for example Pikkarainen et al. (2004) and Wei et al. (2009) established that perceived ease of use does not have a significant effect on consumers intention to use.

The perceived ease of use and usefulness of a mobile payment procedure therefore has an effect on its usage, and Davis (1989) opines that perceived ease of use of a system has a direct influence on perceived usefulness which was reflected in the proposed model. Hence, the following hypotheses were proposed;

10063323 H1: Customers perceived ease of use will positively influence their intention to use mobile money H2: Customers perceived usefulness will positively influence their intention to use mobile money H3: Customers perceived ease of use will positively affect perceived usefulness of mobile money.

3.2.2 Security/Privacy A number of arguments exist in literature, with regards to safety measures employed in electronic payment systems (Ketterer and Stroborn 2002; Strube 2002; Zieschang 2002). Zeithaml et al. (2000), defined security as the extent by which a consumer is assured a particular system is secured, free of threats and personal information is protected. With respect to the definitions above, security and privacy issues in mobile commerce is important and should be taken into consideration by developers of m-commerce applications (Miyazaki and Fernandez, 2001; Earp and Anton, 2004). This is due to the fact that consumers are aware of these issues, and can therefore directly or indirectly affect their intention to use the service (Malhotra et al, 2004; Brown and Muchira, 2004; Sah and Han, 2003). Kreyer et al. (2002) and Merz (2002) argued that security can be classified into objective and subjective security. Where objective security is, a concrete technical characteristic, given when a certain technological solution responds to all of the five security objectives which include; confidentiality, integrity, authentication, nonrepudiation and authorization (Merz, 2002; Shon and Swatman, 1998). While subjective security as described according to Merz (2002), is the extent to which a person believes that using a particular mobile payment procedure would be secured. However, Egger and Abrazhevich (2001) posit that an average consumer cannot assess the objective security of a particular mobile payment procedure; therefore an important feature of mobile money acceptance is security. In addition, ambiguity and confidentiality are also forms of security important to consumers, and relates to the policies guiding consumers personal information (Jayawardhena and Foley, 1998; Shon and Swatman, 1998; Mallat, 2007).

10063323 Nevertheless, perceived security and trust in the vendors is imperative in a mobile environment (Siau et al., 2004; Mallat, 2007), therefore the security techniques used in mobile payment transactions is a primary concern for consumers (Nam et al., 2005). Security of payment transactions in this instance includes no delays, no incompleteness of transactions and no disclosure of private information (Nam et al. 2005). Dahlberg et al. (2003) further identified the security risks associated with mobile payments, and stated that they negatively affect a consumers attitude towards mobile payment. This justifies the fact that security is an important factor that can influence intention to use mobile money and is reflected in the model. Hence, the following hypotheses were proposed; H4: Security/Privacy will influence a customers intention to use mobile money. H5: Security/Privacy will influence the perceived usefulness of mobile money.

3.2.3 Trust Trust is imperative, when assessing factors that affect a consumers behaviour, and also ascertains the accomplishment of a given technological implementation like e-commerce (Chen and Barnes, 2007; Yang et al., 2009). Jones (2002) therefore defined trust as, the assurance of a person to predict the actions of a third party, may rely upon those actions, and that those actions will follow a predictable pattern in the future, especially under risky circumstances and when no explicit guaranty is provided.

However, in this research, trust is described by the extent in which an individual is certain that the using mobile money service is secured and has no privacy threats. Prior research has shown that, trust is a key determinant for the growth of e-commerce and m-commerce applications (Dahlberg et al., 2003; Grandison and Sloman, 2000; Hertzum et al., 2002; Papadopoulos et al., 2001). Gefen et al. (2003) further argued that, trust is an important determinant, as it affects a consumers action towards a particular service or organization and can be defined as a conviction concerning the features of the organization to be trusted. The characteristics are an organizations reliability, generosity and proficiency and they encompass the organizations credibility, as perceived by the customer (Mayer, 1995).

10063323 For the purpose of this research, trust will be used to represent a customers belief in financial institutions (banks), mobile network operators and retailers, since their perception of them can influence their intention to use mobile money. With the above the hypothesis proposed is; H6: Trust will have an influence on a customers intention to use mobile money. Nevertheless, security and trust can be used as two separate theoretical constructs but they however influence each other (Hampton-Sosa and Koufaris, 2005). If mobile network operators and financial institutions offer encryption procedures, so as to restrict unauthorized use, consumers may then see the service as secured, which in turn increases their trust. Therefore it can be stated that, a customer is prone to using a payment system that is secured and is offered by a trustworthy provider. Hence the hypothesis proposed is; H7: there exist a positive correlation between security and trust.

3.2.4 Convenience Convenience is one of the features of mobile payment, therefore can be used in extending TAM. Convenience in this context can be defined as when a given system is developed with the objective to make life simpler for individuals (Obe and balogu, 2007). Convenience as a research construct, has been used mainly in literatures relating to consumer behaviour (e.g. Berry et al., 2002; Jih, 2007; Ng-Kruelle et al., 2002), and recognized as a very important factor necessary for the achievement of m-commerce applications (Xu and Gutierrez, 2006). In addition, Clarke (2001) posits that convenience is associated with fundamentals generating time and place for consumers. Berry et al. (2002) also argued that, time and effort is a good way to determine whether a product or service is convenient. In other words, it can be said that an end user will probably use a payment system that is convenient. Hence the proposed hypothesis is; H8: Convenience will have a positive effect on a customers intention to use mobile money. Nevertheless, eight hypotheses have been developed based on theories and related studies from literature review, in order to assess the factors which can influence a customers intention to use m-money in Nigeria and can be used in answering the research objectives. However, based on the hypotheses, the proposed theoretical model was developed as seen in

10063323 figure 3.1, which shows the relationship between the constructs used and the customers intent to use m-money. This research measures the direct effect of all of the five factors, explained through five constructs on intention to use. Chen (2008) and (Venkatesh, et al., 2003) however, argued that the attitude dimension was difficult to assess and was therefore taken off their proposed research models. Therefore this model excludes the attitude construct and provides the research, an excellent starting point for assessing the effect of the five constructs directly on the intention to use mobile money in Nigeria. The intention to use was measured using three items as shown in Appendix V.

3.3 Conceptual Gaps A number of gaps have been discovered, in identifying the factors influencing consumers intention to use mobile money in Nigeria. They include; 1. There are not any published researches on the factors influencing a customers intention to use mobile money in Nigeria. 2. There are not any published researches in academic journals on the factors affecting a customers intention to use mobile money in Nigeria. 3. There are no empirical researches on the factors influencing a consumers intention to use mobile money in Nigeria.

3.4 Summary of Chapter Three This chapter describes the proposed model used in the research. Factors such as perceived ease of use, perceived usefulness, security/privacy, trust and convenience have been discussed with eight hypotheses proposed to aid in answering the research questions. The next chapter presents the methodology employed in research.

10063323 CHAPTER FOUR - RESEARCH METHODOLOGY The main aim of this chapter, is to examine methodological philosophies and principles used in order to test the hypotheses that was proposed in the previous chapter and also in order to achieve the research objectives of the study, which have been stated in chapter one. The research methodology includes the sampling method, method of data collection and research design. The different analysis methods that will be used to analyse the data will also be discussed in this chapter.

4.1 Research Methodology According to Bryman (2008), research studies should have fundamentals which are usually built on empirical, non-empirical or a combination of both approaches, while Jancowicz (2005) argued that for every research, the aspect of methodology is imperative as it helps in achieving the aims and objectives set out for the research which, will provide the researcher an insight into understanding the philosophical concerns relating to the theories and data required for a good research work to be achieved (Easterby-Smith et al., 2008). Jancowicz (2005, p.221) further defined research methodology to be the, analysis of, and rationale for, the given method or methods used in a study, and in that type of study in general. Moreso, Bryman and Bell (2007) posit that a major problem for researchers is that they do no put into considerations the range of analytical methods available but instead they focus on employing the use of one or two methodological approaches by choosing a method that initially feels right to them. Therefore, as a guide to this research, the Research Onion which is a concept used by Saunders et al. (2007) shown in Figure 2 (See Appendix VII), will be used to outline the methodological assumptions, and direction to be followed by a research.

10063323 4.2 Methodological Perspective Methodological perspective for Saunders et al. (2007), assumes a clear assumption which entails the researchers plan and approach to create knowledge within a specific context, while Easterby-Smith (2008) argued that methodological philosophy has to do with examining the basis for relevant ideas and also evaluating the stated hypotheses, where Pickard (2007) defined hypotheses as, a statement that predicts the association between the dependent and independent variable, which is a focus of the investigation. Furthermore, Johnson and Clark (2006; cited in Saunders et al., 2009) posit that, the most important subject in research, is the provisioning of a significant justification on the chosen philosophies and defending the rationale against other choices, rather than a research just being philosophically conversant. The main reason for this is to prevent the assumption that one research philosophy is superior to another, when practically each method or philosophy is superlative at doing different things subject to the research questions (Bryman and Bell, 2007).

For the purpose of this research, the need to choose an all-purpose methodological philosophy from the four broad methodological philosophies (i.e. Positivism, Interpretivism, Realism and Pragmatism) as pointed by writers (e.g. Saunders et al., 2009; Bryman and Bell, 2007) is imperative (Cooper and Schindler, 2003). However, axiology, epistemology and ontology are the basis for the choice of this philosophy, which would be vital in the choice employed.

4.2.1 Epistemology Perspective Bryman (2008) opines that epistemological perspective entails, searching into the worlds nature, what valid knowledge is all about, and a possible constituent and this occurs as a result of the epistemological approach being the science of the foundation of knowledge, this was also supported by Donald and Pamela (2003). Moreso, Saunders et al. (2007) described epistemology as being concerned with the type, span and soundness of knowledge used in a certain field of study. Cruise (1997), also argued that epistemology is about the study of knowledge, and the type of things that can be classified as knowledge, while Eldabi et al. (2002) opined that it is about the construction of beliefs. In addition, Marsh and Furlon (2002) argued that epistemological positions unlike the ontological position, shows or reflect the worlds viewpoint.

10063323 The philosophies discussed in the next sections are characteristicS of the epistemological perspective (Saunders et al., 2007).

4.2.1.1 Positivism philosophy According to Collis and Hussey (2009), the positivism beliefs instigated from the field of natural sciences, and its theory posits an independence of the topic under research. For researches based on a theory that stems from the positivism, there exists a great focus on theories to be able to predict a social phenomenon (Collis and Hussey, 2009). Positivism was however described by Saunders et al. (2007) as the epistemological position that advocates working with an observable social reality In addition Jupp (2006) stated that it can be viewed as the methodological underpinning of survey research and experimental approaches. Blumberg (2005) also added some criticisms to the positivism philosophy and acknowledged that without examining the perception they have of their own activities, individuals cannot be understood. He also stated that people cannot be separated from social contexts in which they are present. However, positivist pans the interpretivists as not being completely objective, but part of a process in research (Carcary, 2009). Furthermore, Jancowicz (2005) opines that in contrast to the interpretivists who consider perceptions, feelings, external environment and personal beliefs, the positivists argue that proceedings through rational deduction can be found by anyone following similar methods, noting that the outcome is independent of the individual exploring it.

4.2.1.2 Interpretive Philosophy Cooper and Schindler (2008) recognized the main field for an Interpretivism philosophy as, the capability to observe and recognize the world from the subjects point of view. Collis and Hussey (2009) also argued that the theory of the interpretive philosophy is that, there exist a mode of interaction between the researcher and topic under research. Saunders et al. (2007) further stated that, there is a restraint for every philosophy, and on the basis of Interpretivism, there is an issue of its difficulty and bias in a number of related studies. In addition, researchers negative about positivism, asserts that in order to match the complexity of this world, a good insight needs to be maintained and that such complexity must not be lowered completely to law-like generalizations and this view was noted by Saunders et al. (2007) to be the interpretivists view. Nevertheless, Saunders et al. (2007) defined interpretivism as

10063323 the epistemological position that advocates the necessity to understand differences between humans in their role as social actors, while Bryman and Bell (2007) suggests that it identifies the gap between carrying out research among people instead of on objects such as cars and clothes. However, Saunders et al (2007) described the phrase social actors as a metaphor used to make implicit comparison of humans, e.g. like in the theatre, playing a role on the stage of human life where the actors get scripts from their producers and act it out on stage in a meticulous way depending on how they interpret such scripts (Saunders et al., 2007).

4.2.1.3 Realism Philosophy Realism is defined by Saunders et al. (2007) to be the epistemological position, in which objects exists independently of our knowledge of their existence. Saunders et al. (2007) suggests that the realism theory asserts that real structures exist on its own, based on the consciousness of human and both the positivist and Interpretivism philosophical approaches can be used to gain a better understanding of the subject. Bryman and Bell (2007) also argued that the realism philosophy paves a way for a chance to understand the beliefs and thoughts of individuals, to be assessed from a wider context. This brings about easy validation and replication of data, due to combining the philosophical approaches of the Interpretivism and positivist. Although the realist epistemology assumes that there are usual sequences in human and organizational deportment, but these are sometimes hard to identify and very hard to explain due to the amount of circumstances and determinants that might create the observed result (Easterby-Smith et al., 2008). Bryman and Bell (2007) further posits that the positivist and realist epistemology are slightly similar in their scientific approach, and possesses the same belief on the gathering of data and considers factors outside the primary subject (Easterby-Smith et al., 2008).

The realism theory therefore, is seen suitable for this research as it ensures the consideration of customers based on their evaluation of the factors they consider when using mobile money in Nigeria, adopting a relevant theory as a foundation for the prediction of phenomena, including carrying out an assessment to augment an understanding from the subjects viewpoint (Cooper and Schindler 2008).

10063323 4.3 Research Approach In order to make suitable decisions and reducing uncertainties, an approach to the conducting of research is undertaken. While one can easily be intent into assuming that a particular approach is better than another, all approaches are better in various ways in doing different things (Saunders et al., 2007). Bryman (2008) also stated that a research study should be based on fundamentals which are developed on empirical, non-empirical, or a combination of both approaches and according to Blumberg (2005), there exists three dimensions in an empirical approach which include the qualitative and quantitative, deductive and inductive, subjective and objective.

4.3.1 Empirical and the non-empirical approach The empirical study approach according to Remenyi (2005) is a general approach which suggests that understanding is derived from and need to be confirmed by experience logic. However, a research can encompass different means of ideas, which include the analytical, predictive, descriptive and exploratory methods. However, notwithstanding the main purpose of the research, the empirical approach is necessary (Marshall and Rossman, 2006). Nevertheless, Easterby-Smith et al. (2008) argued that it simplifies research i.e. the reporting of observation; therefore, the empirical approach is suitable for answering a specific question or for theory testing.

On the otherhand, the non-empirical approach according to Donald and Pamela (2003) is often implied as a theoretical research. Its main purpose is about emphasizing on existing theories from both published and un-published works, and by means of expression and argument, it develops the preceding write-up so as to generate new validation, insights and assumptions, which brings about good explanations of the topic under focus (Remenyi and Money, 2006). Preceding write-ups that are present in that particular field should therefore be taken into considerations. Thus, Zikmund (2000) confirmed that academic research requires non-empirical base. Therefore, for this research, the empirical and the non-empirical approach will be used.

10063323 4.3.2 Quantitative and Qualitative approach According to Saunders et al. (2007), the quantitative approach is a simple phrase where its outcome is portrayed in figures. In another study Horna (1994) argued that it can be categorised by the deductive logic of natural sciences where simplifications which are law like, presents the foundation for the explanation of the behaviour of individuals. In addition, Quantitative approach is all about developing hypotheses and theories which can be tested and also generalised across settings (Collis and Hussey, 2009) and can also be used to measure how much or how often. Similarly, Neuman (2003) also added that, quantitative research employs the use of a deductive model so as to examine variables and hence provide results which can then be evaluated against the developed hypotheses.

On the otherhand Saunders et al. (2007), described the qualitative approach as one used to express and describe outcomes in words. However, Miles and Huberman (1994) added that it entails strong contact with an actual situation, which typically reflects the daily life of individuals, groups, societies or organisations. Moreso, the qualitative approach is appropriate for discovering, proposing the hypothesis, investigate new areas and is useful when one needs to supplement, explain, validate, illuminate or reinterpret quantitative data gathered from the same setting (Amaratunga et al., 2002). Nevertheless, Amaratunga et al. (2002) indicated a few positive benefits of the qualitative approach to research to include its capability to divulge what the real life is, by studying events or incidences that occurs in natural settings. Therefore, the data collected through the qualitative method can be said to be rich with the possibility to uncover difficulties, and as such studies are flexible in nature.

For the purpose of this study, the quantitative and the qualitative approach would be used, since it is found to be more appropriate. It is termed the mixed approach, as Jogulu and Pansiri (2011) stated that, the qualitative and quantitative research approaches provide various tools that are equally significant in attending to research questions making it difficult to use one without the other. The quantitative approach as stated describes how much across settings, and permits for statistical analysis on the collected data. This approach would be used to evaluate how much customers of mobile money services in Nigeria are satisfied with the service based on their perceptions. In addition, Amaratunga et al. (2002) indicated that the qualitative data is of use to complement and confirm the quantitative result gotten, due to its characteristic for evaluating a phenomenon in a real life context and also

10063323 understanding the topic under study. Malina et al. (2011) also opined that the combined approach would help gain insights in order to develop a robust conclusion which is better than each method adopted independently.

4.3.3 Research Hypothesis Bell (2005) defined hypothesis as a cautious overview of the validity of the research which remains to be tested. Bryman and Bell (2003) also suggests that it is a knowledgeable speculation created with reference to the possible association between two or more variables. The hypothesis proposed in this research, were used to examine factors that influence a customers intention to use m-money in Nigeria and they were centred on findings from the study. Following prior studies, a theory was proposed based on perceived ease of use, perceived usefulness, convenience, trust and security/privacy, which represented the independent variables. The intention to use m-money is considered the dependent variable and is attributed to the level of satisfaction, the customers derived from the service. Independent variable according to Pickard (2007), is the variable that is assumed to influence the dependent variable, while the dependent variable is the research variable subject to treatment and then measured for any effect the treatment has on it. Therefore nine hypotheses based on theories and related studies from literature reviewed were proposed, in order to assess the factors which can influence a customers intention to use m-money in Nigeria as seen in chapter three.

4.4 Research Design According to (Yin, 1994; Rowley, 2002), design preferences for research is based on the aims and purpose of the research prepositions, the degree of knowledge and research viewpoint while Saunders et al. (2007) stated that research design offers the constructs for collecting and assessing data needed for research. In addition, Remenyi (2002) stated that management researchers tend to struggle when trying to choose a suitable technique and strategy. Research designs are placed into various categories such as explanatory, descriptive and exploratory research (Ghauri and Gronhaug, 2002; cited in Jancowicz, 2005). Therefore with reference to the aims, objectives and philosophy of research, the research design is discussed in the next paragraph.

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4.4.1 Research Strategy A research strategy is an all-purpose method the researcher anticipates using, in order to answer the research questions effectively. Thronhill et al. (2003) opined that a research strategy includes clear objectives which are obtained from the research questions, to specify the basis that will be used to gather data and also put in consideration the limitations associated with the research, and includes time, money, data access, location and other ethical issues.

4.4.1.1. Survey The survey is usually related with the deductive approach, and is a frequently used method in a research (Seyed, 2008). It entails gathering a large quantity of data, which includes questionnaires, semi-structured interviews and structured observations in a highly efficient manner, appropriate for the study (Thronhill et al., 2003). A survey can also be used for collecting primary and secondary data from a sample size according to Collis and Hussey (2009), by assessing them in figures and simplifying the results to a population.

4.4.1.2 Case study A case study is a method employed in a research, involving an empirical analysis of an event that exists within the field of a situation in real life by searching for evidence as stated by Robson (2002). Yin (2003) stated the significance of background, and suggests that the evidence in a case study exists, amid the event in consideration and the conditions within which it is being studied which is not visible. The case study is also assumed to be necessary in a study that was executed to broaden the researchers understanding of the topic under focus (Morris and Wood, 1991).

4.4.1.3 Population sample and sample size According to Bryman and Bell (2007), population can be explained as the universe of a unit that a sample is acquired from. Gill and Johnson (2002) also argued that,

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.....it constitutes every element from which a study chooses to derive its outcomes, and the totality of the entity being investigated, and from which the sample size is gotten. Sampling is vital when aiming to achieve set objectives for a research, not minding the method of research chosen by the researcher (Jupp, 2006), thus, Corbetta (2003) described sampling as observing a part in order to gather information about the whole is an almost instinctive human act. It is a deliberate selection of a number of people to denote a bigger population (Anderson, 2004). Therefore, Saunders et al. (2009) suggested that a sampling process is required to aid in organising the study to a controllable size, where Bryman and Bell (2007) divided sampling method into two parts, which include probability and nonprobability sampling. The Probability sampling units are selected by chance and include cluster sampling, random sampling, systematic sampling, while the Non-probability sampling is dependent on the individual judgement of the researcher, for selecting the sample units required which includes; purposive sampling, convenience sampling and quota sampling (Saunder et al., 2009; Collis and Hussey, 2009). Furthermore, Johnson and Gill (2002) suggests that a case study that entails a large population size would not be possible and not viable for individuals to participate, as it is not a census. This research will focus on m-money users in Nigeria. The population size chosen for this research was set for eighty-seven (87) m-money users, but data gathered recorded response from fifty-nine (59) respondents, representing 67.8% of the sample size. Nevertheless, a random sampling method was used in order to achieve the aims and objectives of the research, and involves implementing the survey with consumers currently using m-money, in order to evade unfairness in the chosen sample population (Saunders et al., 2007).

4.5 Data Collection methods Data collection is a very significant aspect of every research study and if data is gathered inaccurately, could lead to an invalid result. According to Tashakkori and Teddlic (2003), data collection is used when trying to derive data that will be used for making decisions and keeping records and has different methods which comprises of interview, questionnaire, and observation. (Saunders et al. (2009) posit two methods of data collection, which is the

10063323 primary and secondary methods. Blumberg et al. (2005) opined that primary data is collected mainly for the purpose of the study. This research therefore, employs the use of semistructured interviews and questionnaires for data collection (Jancowicz, 2005). The questionnaires have been designed and distributed to m-money customers, while secondary data was obtained from academic literatures, journals, conference proceedings, books, reports and Internet sources (Jancowicz, 2005).

In addition, Bryman (2012) stated that cost and time hinders the use of interview to collect data as well as the inconveniences and effect of the interviewer on the respondents, thus, Babbie (2004) posits that cost and time can be alleviated via a telephone interview. AlSubaihi (2008) also opined that telephone interview is a better means of gathering respondents' perceptions than a questionnaire, as this prevents the stiff and controlled atmosphere between both the respondent and the interviewer as they would be in a relaxed and communicative atmosphere (Shuck et al., 2011). An interview was held with a bank and MNO official centred on the factors, that was being used in evaluating m-money services. However, based on the TAM adopted, the researcher aims to achieve the set objectives for the study.

4.5.1 Questionnaires Saunders et al. (2009) opined that questionnaires are important when trying to achieve the answers to group of questions, and Kumar (1999) in another study, defined questionnaire as, a list of questions with which a respondent is expected to read, give an interpretation to what is expected and then select the option that best suits the question. The questionnaire survey offers a range of benefits, e.g. the respondents can choose a set of responses, which are easier to analyse and compare (Patton, 1990). In this research, web based questionnaires which has been commonly adopted by educational researchers (e.g. Couper, 2002; cited in Al-Subaihi, 2008) would be used to determine factors that influence customers intention to use m-money services in Nigeria. The web distributed questionnaire is a form of data collection, whereby the questions are distributed in forms of emails to the respondents and they can click on the attached link in order to participate in the survey.

10063323 As discussed by Jespersen (2005), the issue of validity of information used in a research is alleviated through the use of web surveys. Therefore, Qualtrics will be used to distribute the questionnaires need for this research, since it provides the services that self-administered questionnaires cannot proffer (Dillman 2000; cited in Meckel et al., 2005). Using Qualtrics requires a monthly minimal fee, which allows for questionnaires to be sent through emails to respondents. This technique of collecting data is quick and saves the researcher time. However, it has some shortcomings, which includes lack of access to computers and the internet, and respondents may hurriedly fill out responses for the questionnaire, thus invalidating the results acquired. The questionnaire would be designed with reference to the model (TAM) adopted for the study. The questions will address the factors that would be used for evaluating mobile money services against customers expectations (security/privacy, convenience, trust, etc.), and measure the difference of opinion between expectations and perceptions of m-money customers, which is useful to determine their satisfaction level and is dependent on customers intention to use the service. The questions were adapted from a number of sources including Ventakesh et al. (2003), and were modified to fit the Nigerian context (See Appendix V). The questionnaire comprises three sections, and respondents were required to tick an option that best fits their perception. The first section examines the demographic characteristics of the respondents, such as gender, age, occupation and educational level. The second section aims to enquire about customers usage of m-money and what they currently use the service for, while the third section addressed questions relating to the TAM constructs. The five-point Likert scale will be adopted ranging from 1= strongly disagree, 2= disagree, 3= neither agree nor disagree, 4= agree, 5= strongly agree. The Likert scale can be used in measuring attitudes, which has to do with the respondents signifying their degree of agreement or disagreement with a statement (Pickard, 2007).

4.5.1.1 Pilot test Bryman and Bell (2003) posits that prior to sending out questionnaires to participants, it is essential to put it to a pilot test to make certain that respondents do not encounter problems in responding to the questions. For this research, the researcher carried out a pilot test with a group of volunteered m-money users. The constructs on TAM (perceived usefulness, perceived ease of use, trust, convenience and security/privacy) were discussed with the

10063323 participants in order to take an evaluation of the factors they found necessary in their decisions to use the service. The questionnaires were filled and adjustments were made. After all the changes were made, the questionnaire addressed 18 questions and applicable demographic information. In addition, it was found necessary to carry out an evaluation of a mobile money service with non users and the Barclays Pingit mobile money service was used.

4.5.2 Semi - Structured Interview According to Saunders et al. (2007), interviews can be described as, a conversation sought by the interviewer, with subjects chosen on the strengths of a data collection plan in adequate numbers, having a cognitive purpose which is led by the interviewer on the basis of a standardised or flexible conversation pattern. Kumar (1999) posits that interviews are appropriate for collecting data, as they allow for changes to be made to the way the interview is being performed, so as to acquire a suitable response, which was supported by Zikmund (2007) who added that using interviews for data collection is an important method of noting the opinions of individuals, needed for a research study. The features of Interviews, makes it useful for qualitative researches. Researchers tend to take up interviews as a means of collecting data, due to its flexibility as it can be designed to address the state of a particular system, and there is an increased response rate from participants (Gray, 2009).

In addition, Saunders et al. (2009) added that rather than employing the use of either the structured or unstructured interview, the semi-structured uses an approach from both of them. However, due to limitations in this research, telephone interview was used to contact officials of m-money service to further investigate the area under discussion, and to understand their opinion and what they have done to bring about good quality service, also probing issues and challenges they currently face. The interview was done via phone; notes were taken to ensure good explanation of the answers. However, open-ended questions (See appendix II) were used, together with an interview guide to make certain that the researcher focus on the necessary issues while being able to investigate unexpected responses (Bryman and Bell, 2007).

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4.6 Data Analysis This section focuses on the means used to accomplish an effective data analysis, making the data collected a valuable one. Data analysis is a very important aspect of a research and Porter (2008) portrays it as a process, started even before the collection of data ends. Saunders et al. (2009) also argued that data analysis has to do with gathering, summing, and collating the collected data, with the results reflecting important aspects relating to the topic under study. Moreso, when gathering data through the use of questionnaires, Cross Tabulation analysis as well as graphs and charts can be used to represent the responses of the data from the dispersed questionnaires (Zikmund and Barry, 2009). Babbie (2004) suggests that, present researchers take advantage of the capabilities of available computer applications such as database programs and online tools to gather and analyze data, on the otherhand Sobh and Perry (2006) argues that computer programs cannot comprehend the meaning of text hence wont effectively interpret a respondent's view.

The dependent variable in this research is the Intention to Use (IU), while the independent variables are; Convenience, Security/Privacy, Perceived Ease of Use, Perceived Usefulness and Trust. The independent and dependent variables were assessed using 18 items in the questionnaire, and to simplify the analysis of the data, the 18 items were coded into six different variables (See Appendix V), that represents the five constructs for the independent variables and a construct to represent the dependent variable. Consistent with most TAM based research, this research will utilize Microsoft excel and Statistical Package for Social Sciences (SPSS) for data input and presenting the descriptive analysis of the demographic information and constructs used in the model. However, before the descriptive analysis of the constructs in the model was completed, it was necessary to perform a validity and reliability test on the constructs on which the questionnaire items were built on. This was done using the cronbachs Alpha test, which from most research works has been used to test for reliability. Cross Tabulation and the Chi-squared tests will be used to test the hypothesis, Correlation and regression analysis was also adopted. Multiple regression analysis can be used to explore the predictive ability of a set of independent variable, on one continous dependent variable, while the Chi Squared test is used to explore the association that exist amongst two independent variables. However, data in this study is non parametric,

10063323 therefore Chi-Squared test is found suitable, since there are no assumptions made about the data and the data is definite (Pallant, 2007). The Chi Squared test was also used to investigate any association between the demographic characteristics and the dependent variable. Correlation on the otherhand is useful to investigate the strength of the association among two continous variables and provides an indication of the direction i.e. whether it is a positive or negative correlation (Pallant, 2007). A positive correlation specifies that as a variable increases, so does the other and vice versa for the negative correlation.

However, when assessing qualitative data, the first stage is to identify the subject matter under study and topics which are associated to the research idea. This research applied an analytical approach to integrate the subject and ideas into a theory, that presents a precise and comprehensive account of research (Saunders et al., 2007), and also due to the concept of the research, the research would adapt a non-formal method in analysing the qualitative data which is as a result of the little amount of data involved (Collis and Hussey, 2009). Therefore, to provide the reader with an understanding of the topic under study, and also to achieve the set aims and objectives of the research, the above non-formal approach is essential.

4.7 Ethical Consideration Bryman and Bell (2007) posit that the subject regarding ethics cannot be neglected, as they are totally connected to the integrity of research and the subject area involved. Saunders et al. (2007), therefore defined ethics to be, ....the appropriate mode useful in handling and protecting the confidentiality of the research participants with a conduct pertinent in the highest degree. This research will focus mainly on literature and primary data collected via questionnaire and semi-structured-interviews. According to Bell (2005), with unrelated approaches expected, interviewees might opt to confine some of the way in which their interview is to be carried out during a research, as their input in the interview is to be confidential. Concerns about anonymity in addition to confidentiality often prompt organizations into rebuffing interview requests by researchers according to Brown (2008). Therefore, focusing on the need for an ethical approach in collecting data needed for this research, the researcher will ensure that the

10063323 data collected, will be reliable for research analysis and discussion as capabilities to take away data and records through the course of the research process will be constricted (Saunders et al., 2007). With respect to this research, all the individuals interviewed to attain data needed for this research will be referred to as interviewee or respondents. 4.8 Summary of Methodology chapter Chapter three was introduced with a discussion of the research standpoint on research methodology that is used to test the hypothesis proposed in Chapter two, research strategy, research approach and the research design. Assessment on the population required for the research and how ethical issues were managed were also examined. The analysis of data and presentation of research findings has been closely examined and integrated into Chapter 4.

10063323 CHAPTER FIVE - DATA PRESENTATION AND ANALYSIS This chapter presents the collected empirical data. The findings from the survey will be presented in this chapter and used for the analysis. As mentioned above in the methodological chapter, 87 questionnaires were distributed to m-money users in Nigeria and a total of 61 were filled and returned. However two of the questionnaires returned where incomplete and taken out of the data, which leaves 59 and represents 67.8% of the data distributed and is analysed below. A number of variables were cross tabulated to link relationships in respondent's views and to also show its importance to the research's objectives. Where Collins and Hussey (2003) opined that the findings from the data gathered must be in line with the research. The outline for this chapter is as follows; a descriptive analysis to characterize the collected data, reliability and validity check for the measurement model and linear regression analysis and chi-squared to test the hypotheses.

5.1 Analysis and Interpretation of Quantitative data The first section describes the demographic data of respondents, the second section focuses on the analysis of respondents to the questions. Microsoft excel package and SPSS version 19 was used for the analysis, and due to the aim of the research it was found essential to carry out specific statistical tests in order to give the researcher the chance to check relationships between variables where necessary and identify possible significances.

5.1.1 Demographic and Descriptive Analysis A total of 87 questionnaires were distributed to mobile money users in Nigeria. From the questionnaires sent out, 59 responses was received which represented a response rate of 67.8%. Table 1 (See Appendix VI) shows the gender group where 50.8% (30 respondents) are males while 49.2% (29 respondents) are females. The importance of this variable is that the results are less biased, when the variation between the sexes is small. The result of the findings shows that there is no preference as to which gender uses m-money more in Nigeria. Results from Table 1 (See Appendix VI) shows that users that responded to the survey were of varying age range with 25.4% (15 respondents) being between 36 - 45 years, 23.7% (14 respondents) between 26 - 35 years, 22% (13 respondents) between 18 - 25 years, 13.6% (8 respondents) between 46-55 and the least is between 55 65 and above with a percentage of

10063323 11.9 (7 respondents) and 3.4 respectively. The above result shows that in Nigeria m-money is used across all age groups. The mean value is 2.80 with a standard deviation of 1.42. Occupation falls under a definite variable and is measured nominally. Thus, results obtained from Table 1 (See Appendix VI) shows that the most m-money users were Professionals and constitutes the majority, at 25.4% (15 respondents), followed by students and self employed respondents with equal percentage at 22% (13 respondents), 13.6% (8 respondents) were Unemployed; the respondents who did not fall into any of the listed categories were 5.1% (3 respondents) and 11.9% (7 respondents) were retired. Mean value of 2.83 and standard deviation of 1.49. This is also show in the charts below.

18-25 49% 51% Male Female 14% 12%3% 25% 22% 24% 26-35 36-45 46-55 56-65 65+

Figure 5.1: Gender

Figure 5.2: Age-range

Student 12% 5% 14% 22% 25% 22% Professional Self-employed Unemployed Retired Others

Figure 5.3: Occupation

10063323 5.1.2 Results from Questionnaires How long have you been using mobile money? Table 3 (See Appendix VI) shows that, the vast majority of respondents have used m-money for more than a year at 55.9% (33 respondents) with 63.3% (19 respondents) being male and 48.3% (14 respondents) being female. 27.1% (16 respondents) have used m-money less than five months, with 30% (9 respondents) being male and 24.1% (7 respondents) being female, while 6.9% (10 respondents) have used m-money for less than three months, with 6.7% (2 respondents) being male and 27.6% (8 respondents) being female. This shows that more people are becoming aware of the service and are currently adopting it. Mean value of 2.39 and standard deviation of 0.77. The most number of respondents who use mobile money were found to be students, professionals and the self-employed. The chart below (Figure 5.4) illustrates the percentage of how long the respondents have been using mobile money in Nigeria.

17% 56% 27%

Less than three months Less than five months More than a year

Figure: 5.4

I use mobile money for? Results show that 33.3% (19 respondents) of respondents, use m-money for payment of goods and services, with 30% (9 respondents) being male and 37% (10 respondents) being female. Also 26.3% (15 respondents) use m-money for mobile airtime top-up, with 26.7% (8 respondents) being male and 25.9% (7 respondents) being female. 26.3% (15 respondents) make money transfers to friends and family (33.3% male and 14.8% female) with the least percentage 15.8% (9 respondents) uncategorized. Mean value of 2.30 and standard deviation of 1.03. This is shown in the Table 4 (See Appendix VI) and the chart below (Figure 5.5)

10063323 shows mobile money usage. Moreso, among the 15respondents who use m-money for mobile airtime top-up, 9 were students, a professional, 2respondents for the employed and unemployed each and lastly a retired respondent. This result shows that m-money for airtime top-up is common among students within the age group of 18-25. On the otherhand for goods and services, the most number of respondents were found to be among the professionals and self employed within the age-group of 26-55 and lastly, for the transfer of payments to friends and family, the most number of respondents were professionals and self employed within the age-group of 26-45.

16% 25%

26% 33%

Mobile airtime topup Pay for goods and services

Figure 5.5: Mobile money usage

I would like to use mobile money to.... Results shows that, 37.3% (22 respondents) of users would prefer to use m-money for payment of bills, 27.1% (16 respondents) would rather use it for making international transfers and payments, while 23.7% (14 respondents) want to be able to make fairly large transactions with the service. However, 11.9% percent (7 respondents) who did not fall into any of the listed categories have other uses for m-money. Mean value of 2.37 and standard deviation of 0.98 as shown in Table 5 (see Appendix VI). The chart below (figure 5.6) shows what respondents would want to use mobile money for. The most number of respondents, who use m-money for fairly large transactions, was within the age group of 18-55 and more between 26 and 35. They also consist mostly of students, professionals and the self employed. For international transfers, they were found to be within the age group of 26-55 and mainly students, professionals and self employed. In addition for payments of bills, the respondents were within the age group of 26-55 and were mostly professionals.

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12% 24% 37% 27%

Make fairly large transactions Make international money transfers

Figure: 5.6

5.2 Analysis using TAM constructs. Analysis for each construct used is shown below, showing the frequency of survey responses in percentage. The five-point 'Likert - style rating scale' was used "in which the respondent is asked how strongly he or she agrees with a statement or series of statements (Saunders et al., 2007, p. 372)". Likert scale can help give the reader an insight of the different factors that can influence a customers intention to use m-money services, based on the constructs included in the theoretical model. Before progressing to the analysis, it is essential to present the interpretation of the five-point Likert scale: 1= strongly disagree, 2= disagree, 3= neither agree nor disagree, 4=agree, 5= strongly agree. However, before the descriptive analysis of the TAM constructs, it is imperative to assess the reliability of the constructs of the model adopted.

5.2.1 Cronbachs Alpha Test of Reliability A general method used to measure the reliability of Likert scales is Cronbach's Alpha (Dong et al., 2008). Cronbachs test was used to test the reliability of the measurement instruments. The items relating to the various constructs used in the questionnaires have been grouped and tested, and this was done to help the researcher determine if the items under each constructs were free of error and can be used. According to Nunnally and Bernstein (1994), score above 0.7 indicates a high internal consistency reliability of the scale items. Nonetheless, a number of research also shows that, other researchers use different cut-off scores like 0.8 or even 0.6 (Garson, 2002). The table below shows the -scores estimated based on the collected data.

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Constructs Perceived Ease of Use Perceived Usefulness

Cronbachs Alpha (-score) Number of items

.84

.86

Security/Privacy

.88

Trust

.88

Intention to Use

.86

Convenience

.82

Table 5.1: Measurement reliability statistics for each constructs

The result from the test carried out, implies that the data used is reliable enough for measuring the constructs used for this research and is appropriate for further analysis. Therefore the analysis of the constructs used in the questionnaire would be analysed in the next section.

10063323 Perceived Ease of Use (Q1, Q2, Q3)

Figure 5.7: PEOU

Analysis of the findings from Q1 shows a large number of the respondents perceive m-money to easy to use. Where 57.6% (34 respondents) agreed and 30.5% (18 respondents) strongly agreed, which indicates that more than half of the respondents are getting their desired level of satisfaction from m-money and they also perceive that the service is easy to use and this would also influence their intention to use the service. Also, 6.8% (4 respondents) are neutral about the ease of use of mobile money and this puts them in the zone of tolerance. In contrast to the above results, 5.1 disagree (3 respondents) that the service is easy to use and this shows that they are not getting adequate level of satisfaction from the service and are dissatisfied about the service. This is shown in Table 6 (See Appendix VI). Also, Q2 shows that 50.8% (30 respondents) and 35.6% (21 respondents) agreed and strongly agreed respectively that they find sending SMS messages easy to use. This result also shows that more than half of the respondents are getting their desired level of satisfaction from mmoney. However, 6.8% (4 respondents) are neutral about the ease to use SMS and this is similar to the results from those who disagreed to the fact that sending SMS is easy as shown in Table 7 (See Appendix VI) In addition, Q3 shows that 49.2% (29 respondents) agree and 27.1% (16 respondents) strongly agree, to the registration procedures for m-money being easy. This result therefore shows that the respondents are getting their desired level of satisfaction from m-money.

10063323 Furthermore, responses gotten from each of the items in this construct, shows that respondents perceive mobile money to be easy to use. In contrast 10.2% (6 respondents) and 8.5% (5 respondents) both disagreed and strongly disagreed to the registration process for mobile money being easy. However, 5.1% (3 respondents) are neutral about this and can be said to be in their zone of tolerance. This result is shown in Table 8 (See Appendix VI).

Perceived Usefulness (Q4, Q5, Q6)

Figure: PU

Analysis of the results from Q4, shows that a large number of the respondents perceive mmoney to be useful. Where 62.7% (37 respondents) agreed and 32.2% (19 respondents) strongly agreed to the fact that they find m-money a useful way to make payments, which indicates that more than half of the respondents are getting their desired level of satisfaction from m-money. However, 1.7% (1 respondent) disagreed and 3.4% (2 respondents) are neutral about mobile money being useful for making payments. This is shown in Table 9 (See Appendix VI). In addition, Q5 shows that 59.3% (35 respondents) and 39% (23 respondents) agreed and strongly agreed saves time of queuing in banks. This result also shows that more than half of the respondents are getting their desired level of satisfaction from m-money. Moreso, just 1.7% (1 respondent) disagreed that mobile money saves time as shown in Table 10 (See Appendix VI).

10063323 Q6 shows that 49.2% (29 respondents) agree and 40.7% (27 respondents) strongly agree that m-money is useful for carrying out monetary transactions. This result therefore shows that the respondents are getting their desired level of satisfaction from m-money. 8.5% (5 respondents) are neutral and 1.7% (respondent) disagreed that mobile money is makes it easy to conduct payment transactions. Responses gotten from each of the items in this construct therefore shows that, respondents perceive mobile money to be a useful service.

Security/Privacy (Q10, Q11, Q12)

Figure 5.9: Security/Privacy

Analysis of the results from Q10 shows that 59.3% (35 respondents) disagree and 16.9% (10 respondents) strongly disagree to the fact that there is no security threat with m-money, this shows that the customers are dissatisfied in terms of security of their payment transactions. Similarly, 16.9% are neutral about the security aspect as they neither disagreed nor agreed to the question. However, just a few percentages of the respondent were getting their desired level of satisfaction, as just 5.1% (3 respondents) and 1.7% (1 respondent) agreed and strongly agreed to the fact that there is no security threat with mobile money. In addition, Q11 shows that 50.8% (30 respondents) disagree and 15.9% (9 respondents) strongly disagree about having assurance of no vague transactions. In addition 27.1% (16

10063323 respondents) are neutral on this aspect. Similarly as in Q10 same percentage of respondents agreed and strongly agreed that they are assured of no vague transactions. Q12 shows that 55.9% (33 respondents) disagree and 18.6% (11 respondents) strongly disagree about the security of their personal data. 8.5% (5 respondents) are in their zone of tolerance as they neither agreed nor disagreed on being assured that their personal data is secure, but15.3% (9 respondents) and 1.7% (1 respondent) agreed and strongly agreed that their personal data is secured. This result therefore shows that more than half of the respondents are not confident that their personal data is secured and as such can influence their intention to use the service. The above results are shown in Table 15, 16 and 17 respectively (See Appendix VI). In addition, it was noted that, there exist some differences between the different age groups used in the survey. The most important disparity was that the older generation (i.e. range of 46-65+) seems less interested in security/privacy unlike the younger generation (i.e. 18-45). This can be said to be due to the difference in the use and knowledge of mobile technology between the two groups. The age-group 18-45 use their mobile phones for different purposes, and are aware of the security threats associated with it, unlike the 46-65 age group who use the mobile device for mainly phone calls. The younger generation finds it easier to adopt m-payments due to their mobile technology knowledge.

Trust (Q7, Q8, Q9)

Figure 5.10: Trust

10063323 With respect to Q7, 30.5% (18 respondents) and 15.3% (9 respondents) disagreed and strongly disagreed to completely trusting financial institutions, in contrast to 28.8% (17 respondents) and 3.4% (2 respondents) who agreed and strongly agreed that they trust financial institutions. However 22% (13 respondents) are neutral about trusting financial institutions. This results show that trust depends on each individual based on their personal experiences or word of mouth. Moreso for Q8, 35.6% (21 respondents) disagreed and 13.6% (8 respondents) strongly disagreed, that mobile network operator and retailers can be trusted. However 22% (13 respondents) are neutral while, 23.7% (14 respondents) and 5.1% (3 respondents) agreed and strongly agreed that they can trust mobile network operators and retailers. Nevertheless for Q9, a large percentage expects m-money to continue in the future and this represents 42.4% (25 respondents) and 10.2% (6 respondents) of the total respondents, who agreed and strongly agreed that they expect mobile money to continue even in future. However, 22% (13 respondents) are neutral about this, while 16.9% (10 respondents) and 8.5% (5 respondents) disagreed and strongly disagreed about their trusting that the service would continue in future.

Convenience (Q16, Q17, Q18)

Figure 5.11: Convenience

Results from Q16 shows that a large number of the respondents finds mobile money convenient since their phone is always with them, which represents 51.7% (30 respondents) and 22.4% (14 respondents) who agreed and strongly agreed respectively. 18.6% (11 respondents) are neutral, while 6.8% (4 respondents) disagreed that it is convenient. Similarly Q17 also shows that 64.4% (38 respondents) and 22% (13 respondents) agreed and strongly

10063323 agrred that mobile money is convenient since they can use it anywhere and at anytime. However, 10.2% (6 respondents) are neutral about this, while and 3.4% (2 respondents) disagreed to this notion. Nevertheless, Q18 shows that 62.7% (37 respondents) and 15.3% (9 respondents) agreed and strongly agreed respectively that mobile money meets their transaction needs. In contrast, 5.1% (3 respondents) disagreed that it does, while 16.9% (10 respondents) are neutral about mobile money meeting their transaction needs. Conclusion from the above results shows that a large number of the respondents perceive mobile money to be convenient. This is shown in Table 18, 19 and 20 (See Appendix VI)

5.3 Testing the Hypothesis In order to test the hypothesis, linear regression was used. Linear regression can be used to explore the predictive ability of an independent variable on one continuous dependent variable (Pallant, 2007; Hair et al., 2006). Hypothesis testing however is based on the standardized path coefficient (r-path coefficient). In order for a hypothesis to be supported, the p-value of the r-path should be significant at 0.05. Chi-square test was adopted to determine if there is an association between the variables.

H1: Customers perceived ease of use will positively affect their intention to use mobile money
Table 5.2

Test Statistics PEOU Chi-Square Df Asymp. Sig. 57.780a 9 .000 IU 70.492b 7 .000

10063323 a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 5.9. b. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 7.4.

Performing a test for the above hypothesis, to affirm if there is relationship between customers perceived ease of use and their intention to use the m-money, was tested using the question that addressed I find mobile money service easy to use (Q1), sending SMS is easy (Q2) and the registration procedures for mobile money is easy (Q3). To be significant, the significance value needs to be 0.05 or less than 0.05 and from the results obtained; the significant value is 0.000 which is less than 0.05. Therefore the result demonstrates significance and implies there is a relationship between customers perceived ease of use and their intention to use m-money. This hypothesis is supported.

H2: Customers perceived usefulness will positively affect their intention to use mobile money Table 5.3

Test Statistics PU Chi-Square Df Asymp. Sig. 45.237a 5 .000 IU 70.492b 7 .000

a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 9.8. b. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 7.4.

10063323 The above hypotheses was tested for using the questions that addressed, I find mobile money a useful way to make payments (Q4), mobile money helps saves time (Q5) and using mobile money makes it easier to conduct transactions (Q6). This was done to show the relationship between customers perceived usefulness and their intention to use m-money. The significance value is 0.000 which is less that 0.05 as seen in Table 5.3 above and shows that there exist a positive relationship between customers perceived usefulness and their intention to use m-money. Hence the hypothesis is supported.

H3: Customers perceived ease of use will positively affect perceived usefulness of mobile money.
Table 5.4

Test Statistics PEOU Chi-Square Df Asymp. Sig. 57.780a 9 .000 PU 45.237b 5 .000

a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 5.9. b. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 9.8.

Table 5.4 above shows the test for H3, which is to verify if customers perceived ease of use will positively affect perceived usefulness of mobile money. This was tested using I find mobile money service easy to use (Q1), Sending SMS is easy (Q2) and The registration procedures are easy for me (Q3) against I find mobile money a useful way of making payment (Q4), Mobile money helps save time (Q5) and Using mobile money makes it easier to conduct transactions (Q6). The significance value is 0.000 which is less that 0.05

10063323 and shows that there exist a positive relationship between customers perceived ease of use and perceived usefulness. Hence the hypothesis is supported

H4: Security/Privacy will influence customers intention to use mobile money.


Table 5.5

Test Statistics SECURITYPRIVACY Chi-Square Df Asymp. Sig. 114.576a 10 .000 IU 70.492b 7 .000

a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 5.4. b. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 7.4.

The above hypotheses was tested for using the questions that addressed, There is no security threat with mobile money (Q10), I have assurance of no vague transactions (Q11) and I am confident that my personal data is secured (Q12), against intention to use, which is the dependent variable. This was done to show the relationship between security/privacy and customers intention to use m-money. The significance value is 0.000 which is less that 0.05 as seen in Table 5.5 above and shows that, security will influence customers intention to use mobile money. Hence the hypothesis is supported.

10063323 H5: Security/Privacy will positively affect the perceived usefulness of mobile money.
Table 5.6

Test Statistics PU ChiSquare Df Asymp. Sig. a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 9.8. b. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 5.4. 5 .000 10 .000 SECURITYPRIVACY

45.237a 114.576b

The above hypotheses was tested for using the questions that addressed, There is no security threat with mobile money (Q10), I have assurance of no vague transactions (Q11) and I am confident that my personal data is secured (Q12) against perceived usefulness which addressed I find mobile money a useful way to make payments (Q4), mobile money helps saves time (Q5) and using mobile money makes it easier to conduct transactions (Q6). As seen in Table 5.6 above, the significance value is .000 which is less than .05 and shows that security/privacy will affect customers perceived usefulness of mobile money.

10063323 H6: Trust will have a positive effect on customers intention to use mobile money. H8: Convenience will have a positive effect on customers intention to use mobile money.
Table 5.7

Test Statistics CONVENIENCE Chi-Square Df Asymp. Sig. 98.576a 8 .000 TRUST 35.966b 12 .000 IU 70.492c 7 .000

a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 6.6. b. 13 cells (100.0%) have expected frequencies less than 5. The minimum expected cell frequency is 4.5. c. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 7.4.

H6 was tested using questions I can completely trust financial institutions (Q7), mobile network operators and retailers can be trusted (Q8) and I expect mobile money service to continue even in the future (Q9) with intention to use. The significance as shown in Table 5.7 above is .000 which is less than .05 and shows that trust will positively affect customers intention to use mobile money, hence H6 is supported. On the otherhand H8 was tested using Mobile money is convenient because my phone is always with me (Q16), Mobile money is convenient because I can use it anywhere and at anytime (Q17) and Mobile money meets my transaction needs (Q18) with intention to use. The significance value was also found to be .000 which is less than 0.5 and shows that convenience will have a positive effect on customers intention to use mobile money. Hence H8 is supported.

10063323 H7: There is a positive correlation between security and trust.


Table 5.8

Correlations SECURITYPR IVACY SECURITYPRIVAC Pearson Correlation Y Sig. (2-tailed) N TRUST Pearson Correlation Sig. (2-tailed) N 59 .512** .000 59 59 1 TRUST .512** .000 59 1

**. Correlation is significant at the 0.01 level (2-tailed).

Correlation according to Pallant (2007) can used to explore the strength of the relationship between two continuous variables. Cohen, (1988, p. 79) recommended some guidelines for interpreting correlation results which he stated as small correlation values as (r=.10 to .29), medium (r=.30 to .49) and large correlations (r=.50 to 1.0). The interpretation of the results above will be based on this guideline. As identified from the hypotheses in the methodology, that there is a positive correlation between security/privacy and trust, the table above shows that is true. It can be seen that the Pearson correlation coefficient (.512) and (.512) that represents security and trust respectively are positive, indicating a positive correlation between security/privacy and trust. This shows that, customers perceived security/privacy of mobile money would increase their trust in financial institutions, retailers and MNOs. Similarly, in order to determine the strength of the relationship the size of the value of the correlation also has to be put into consideration. Pallant (2007) stated that, a correlation of zero indicates no relationship between both variables, while a correlation of 1.0 indicates a perfect positive correlation as seen in the table above which shows a very strong relationship between security/privacy and trust. Hence hypothesis 7 is supported.

10063323 5.4 Cross Tabulation This test was done to check if there is a relationship between gender and the intention to use of m-money in Nigeria from the data gotten from the survey. This will be done using the Chisquare test for independence.
Table 5.9:

Chi-Square Tests Asymp. Sig. (2Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 59 19.555a 23.157 .148 df 7 7 1 sided) .007 .002 .701

a. 14 cells (87.5%) have expected count less than 5. The minimum expected count is .49.

The main value from the figure above is the Pearson Chi-square value and for gender to be significant, the Sig. value shown in the table has to be .05 or smaller. Therefore from the results above, the value .007 is lower than the alpha value of .05 which shows that our results is significant and can be concluded that there is an association between gender and intention to use m-money.

5.5 Regression In this section, multiple regression analysis is used to predict the impact of perceived ease of use, security/privacy, perceived usefulness, trust and convenience (Independent variables) on customers intention to use m-money (dependent variable). The regression model can be expressed as: Y = a + b1 Perceived ease of use +b2 Perceived usefulness +b3 Trust + b4 Security/Privacy + b5 Convenience

10063323 Where: Y = Intention to use of m-money Multiple regression analysis, aims to determine which of the known independent variable has a strong involvement in explaining customers intention to use m-money. The table demonstrates that the tolerance value for the independent variables is more than .10, and a VIF value below 10, implies no violation of the multi co-linearity assumption. The normal probability of the regression lies reasonably on a straight line and the scatter plot also shows a considerable rectangular distribution which suggests no deviation for normality. This is seen in Table 3 (See Appendix XI). The findings from the table indicate that convenience with a significant value of .000 has the strongest unique distribution to explaining customers intention to use m-money; this result indicates that it is the main predicting construct in the model. Security/privacy with a significant value of 0.28 is the second most important factor that can influence customers intention to use mobile money. However, other variables such as perceived usefulness and trust, with significant value of 0.34 and 0.41 had very low significance. Perceived ease of use with a significance of 0.42, has a lower effect on customers intention to use mobile money. The R square value at .586 indicates that the model explains 58.6% of the variance in the data, which shows that convenience, security/privacy, perceived usefulness, trust and perceived ease of use can be used in explaining customers intention to use m-money. However if the VIF values are greater than 10, it shows colinearity existed as shown in Table 1 (See Appendix XI), but in this current research model, the VIF values were lower than 10 and the tolerance values were all above 0.1, which can be concluded that there was no co-linearity with the data of the study.

5.6 Summary of findings and analysis chapter This chapter analyses the data from the questionnaires and also the constructs used in the model. The results of the various test used to test the constructs are also analysed in this chapter. From the regression test it can be seen that convenience has the strongest unique distribution for explaining customers intention to use mobile money in Nigeria.

10063323 CHAPTER SIX - FINDINGS AND DISCUSSIONS The results from the data analysis are presented in this chapter and the findings are discussed in relation to the research aim and objectives. The data has been analysed using linear regression, Chi Square tests and cross tabulations. This first section discusses the results of the survey, followed by the analysis and discussion of the semi-structured interview. The main objective of this research is to investigate the factors that affect a consumers intention to use mobile money in Nigeria which was followed by some research questions like; which factor is most important for customers, relating to their intention to use M-money in Nigeria, does security threat and privacy have an effect on a customers intention to use mobile money in Nigeria, what are the important factors that influence customers intention to use mobile money, has perceived usefulness and perceived ease of use influenced customers intention to use mobile money in Nigeria?. A theoretical model was proposed and set of hypotheses developed from literature, which was used to explain the factors that influence customers intention to use mobile money. Furthermore, hypothesis 1-8 was used to answer objective 2 and research question 1, hypothesis 4 and 5 was used in answering research question 2, hypothesis 8 was useful in answering research question 3 and hypothesis 1, 2 and 3 was useful in answering research question 4.

6.1 Exploring the Hypotheses This section focuses on discussing the results and evaluating the research hypotheses as presented. The majority of the hypotheses are supported from the chi-square analysis. To reiterate, the chi-squared test was used to investigate the association among two categorical variables (Pallant, 2007). The main aim of this study is to assess the factors that influence a customers intention to use mobile money in Nigeria, by using the technology acceptance model (TAM). This research used variables form existing researches that are relevant to the use of mobile payment.

10063323 Perceived Ease of Use H1: Customers perceived ease of use will influence their intention to use mobile money H3: Customers perceived ease of use will positively affect the perceived usefulness of mobile money. In assessing the relationship between perceived ease of use with intention to use, the findings in the study illustrates that, perceived ease of use has a significant effect on customers intention to use mobile money in Nigeria. This result contradicts prior studies regarding the use of mobile commerce applications (e.g. Wei et al, 2009; Pikkarainen et al, 2004) which shows that perceived ease of use has no significant effect on intention to use. It is however, consistent with findings from (e.g. Jahangir and Begum, 2008; Amin, 2007; Shih and Fang, 2004, Ramayah and Ignatius, 2005, Heijden et al., 2003). Therefore, it can be implied that customers perceived ease of use has a significant impact on their intention to use mobile money in Nigeria. An additional research by (Nysveen, Pedersen, & Thorbjrnsen, 2005) looked at mobile services in general and also tested the PU and PEOU constructs from TAM, both factors were considered to be important. Nevertheless, for H3 which states that customers perceived ease of use will affect the perceived usefulness of mobile money, Ventakesh et al. (2003) posits that the relationship between perceived ease of use and perceived usefulness is that, perceived usefulness mediates the effect of perceived ease of use on the intention to use. In otherwords it can be stated that perceived ease of use influences intention to use indirectly through perceive usefulness. In addition results from the test on the hypothesis shows that perceived ease of use had a significant effect on perceived usefulness, hence it can be stated that perceived ease of use would affect a customers intention to use m-money in Nigeria, through its perceived usefulness. This was also supported by David (1989), where he stated that perceived ease of use has both an immediate effect and an indirect effect on adoption intention through perceived usefulness.

10063323 Perceived Usefulness H2: Customers perceived usefulness will influence their intention to use mobile money Findings from the research show that, customers perceived usefulness has a positive significant effect on their intention to use mobile money in Nigeria. It implies that a users intention to use m-money will increase, if they find that particular system useful. This is as a result of m-commerce characteristics, such as ubiquity and immediacy, where consumers will be able to retrieve information and also conduct transactions anywhere and at anytime. In this research perceived usefulness was found to be significant which sustains prior researches that used TAM in the context of mobile commerce (e.g. Luarn and Lin, 2005; Lin and Wang, 2005; Lu et al, 2003; Ventakesh et al, 2003; Kim et al., 2010) and e-commerce (e.g. Guriting and Ndubisi, 2006). These studies show that perceived usefulness plays a significant role in influencing the intention to use a new technology. However this contradicts the study by Ramayah and Ignatius (2005), where they tried to determine the influence of perceived usefulness, perceived ease of use and perceived enjoyment with intention to shop online, they found that perceive usefulness was not significantly associated with intention to shop online. Nevertheless, mobile money providers and vendors should emphasize on implementing a reliable system that will meet users expectations, as well as ensure they provide helpful and quality information to users.

Trust H6: Trust will influence customers intention to use mobile money. H7: There is a positive correlation between security and trust. Results, from the analysis shows that customers trust in financial institutions, mobile money providers, mobile network operators will influence their intention to use mobile money in Nigeria. This research, however contradicts prior research by (Wei et al., 2009; Pousttchi and wiedemann, 2005), where their findings show that trust does not have a significant effect on intention to use mobile commerce applications in Malaysia, although their studies were conducted in a different environment other than Nigeria but supported by (Heijden et al., 2003; Gefen et al., 2003). Economist (2009) cited in IFC (2011), also added that consumer distrust of both the financial institutions and mobile network operators are major concerns where they stated that,

10063323 The financial sector is still recovering from the near-collapse of five banks in 2009, which the CBN had to bail out and intervene to support microfinance institutions.

In otherwords, distrust for banks can be said to be due to past records, including ATM and debit card issues, while distrust for mobile network operators is due to their unreliable network coverage.

Consequently, without trust users will not employ the use of the service, as they would deem it not useful and safe. This is understandable, as mobile money services involves monetary transactions and users are normally used to conducting transactions face to face. Nevertheless, Wang and Barnes (2007) posit that organisations can incorporate strategies to build customer trust e.g. company guarantee policy and statement (Wei et al., 2009). Furthermore, findings from the research also show that there is a strong relationship between security/privacy and trust as shown from hypothesis 5. Where Pallant (2007) posits that a positive correlation indicates that as one variable increases, the other increases as well, this shows that, a customers perceived security/privacy of mobile money would increase thei r trust in financial institutions, retailers and MNOs.

Security/Privacy H4: Security/Privacy will influence customers intention to use mobile money. H5: Security/Privacy will positively affect the perceived usefulness of mobile money. Results indicate that security/privacy has an influence on the intention to use mobile money in Nigeria, which is in contrast to existing literatures regarding mobile payments (e.g. Pousttchi and wiedemann, 2005). It is however consistent with findings from (e.g. Chen, 2008; Nysveen et al., 2005; Schiertz et al., 2010; Luarn and Lin, 2005). Therefore, it can be said that security/privacy have a significant effect on customers intention to use mobile money in Nigeria, since increased security/privacy, increases intention to use. In using a mobile phone as a platform for monetary transactions, customers would be unsure of the security features it contains and this leads to them being unsure of its safety. This aspect was also discussed with the interviewees, to find out what they thought the concerns of consumers were regarding mobile money, and they mostly stated that the major worry was security.

10063323 Nevertheless, for H5, in assessing the relationship between security/privacy and perceived usefulness, security/privacy had a significant effect on perceived usefulness, hence it can be stated that security/privacy would influence a customers intention to use m-money in Nigeria through its perceived usefulness.

Convenience H8: Convenience will influence customers intention to use mobile money. Results from the tests shows that if customers find mobile money convenient, it would positively affect their intention to use the service. In this research, the researcher noted that convenience had the most significant factor in influencing customers intention to use mobile money in Nigeria. Therefore, if they find the service not convenient for them in carrying out their transactions, they would not use of the service. This however supports the study carried out by Berry et al. (2000), were they found convenience to be a significant factor that affects, behavioural intention to use.

6.2 Analysis and Discussion of Qualitative data: Interview Results This section presents findings from the interview conducted with individual officials and mobile money providers. It focuses on describing the type of m-money service being offered and how it has help improve the organizations productivity, how the service has been promoted to encourage customers usage, identifying the banks view on the concerns of consumers about m-money, what they consider important to customers about their use of the service, problems they face in successfully implementing the service. Furthermore, their understanding of security, trust and privacy, how they have delivered these to meet their customers expectations and lastly their plans to improving and expanding the service.

6.2.1 Participants Description In order to understand the views of the respondents in the interview, its important for the researcher to provide a description of each respondent in terms of their working experience, educational level, the name of organization and position held. These descriptions will provide

10063323 the interviewer a personal context with the interviewees. See Appendix III for the portfolio of individuals identified in this interview. The next section below discusses the findings from the survey undertaken.

6.2.2 Interview process and discussion It was imperative to not only assess the customers views, but also interview the bank officials who are the controlling bodies of the service and also mobile network operators. As justified in the methodology, this research would be analysed informally due to the small amount of data involved (Collis and Hussey, 2009). A brief telephone interview was carried out to obtain more valuable information from the providers perception to further strengthen the quality of data gathered. Where Radnor (2002, p. 91) opines that, it is "responsibility of each researcher to make sense of the data and theorizing from it". Nevertheless, due to limitations such as cost and accessibility, two officials were interviewed, a bank official and an official from a leading m-money service provider in Nigeria (Pagatech). The questions and results gotten from the interview were coded to describe meanings from notions. The questions were represented by Q (Q1 to Q8), while B1 indicates the 'bank official' and M1 the 'mobile service provider'. Ghauri and Gronhaug (2005) posit that although interviews are known to be very useful in collecting data, it is necessary for interviewers to also have a significant knowledge of the respondent's values and expectations to be well executed. Moreso, eight questions were prepared by the interviewer, in reference to the discussions from the literature review and the responses to the interview questions were reassessed and categorized. In order to agree to an understanding interaction between the interviewer and researcher, it was essential to start by asking the officials what kind of mobile money services were provided to customers (Q1). This was a general question, which was recognized during the process of analysis, since almost all mobile service providers, provided closely interrelated services. M1 stated that they offer a variety of products and services to suit consumers every day needs such as, airtime top-up, payment for goods and services, cash withdrawals and transfers and bill payments which were similarly mentioned by respondent B1.

10063323 The second question (Q2) was to identify how mobile money has improved the organizations productivity. In order for the reader to have a good understanding about the answers provided, it was imperative to simplify the analysis of the respondents to developing themes (Bell, 2005).This question had similar answers from both B1 and M1, which include bank reputation (brand image), cost effectiveness, competition and market expansion. B1 opined that mobile money has helped build the banks reputation, since its bank (GTB) is one of the first to partner up with MTN and implement the service in Nigeria which improved the image the bank had formed for itself over the years. He also stated that the new innovation affected the view of individuals generally, because the bank portrayed an image as leaders in technological implementation. This was supported by Hutchins (1986) and Lewis (1986) stating, that benefits can be obtained from the provision of high quality service. B1 further added that m-money has helped their bank save cost in terms of their operation, by reducing the cost associated with setting up branches and recruiting staffs, which has helped the bank strategise and also put more consideration to providing high quality services through mmoney, and was found to be a cheaper platform for the bank. In addition B1 also proudly stated that since the service is not been delivered by all banks yet, it would help enhance the organisations image, giving them a competitive edge among competitors and also increased output, which is in direct support of views provided in the literature by (Limsombunchai and Weng, 2006; Flavian et al.,, 2004). M1 placed a lot of emphasis on cost effectiveness, and stated that, it is a known belief that banks and non-banking organisations have their major aim targeted at maximising profit. He stated that despite the fact that m-money is still innovatively new, the companys profit has maximised and they have created job opportunities, by recruiting retailers to help deliver the service. M1 also added that with the current policy in Lagos state, where the federal government had just implemented the cashless economy policy, m-money would be a good way to reducing the queues in banking halls. This will also create room for customers to make use of the service and since his organization delivers high quality service to their customers, this will lower the advertising and promotion cost since customers would spread the news more through the word of mouth.

The third question (Q3) addresses the known fears and concerns of customers about mobile money? Research by (Carlos and Miguel, 2009; Udeme, 2010; Ayo et al, 2010) has shown that, the major worry of customers about mobile commerce applications are issues

10063323 related to security and privacy, and is justified to have an impact on customers perception of a service and therefore their intention to use the service. The interviewer acknowledged that both B1 and M1 made reference to security concerns. They further categorised these concerns into fraud, privacy concerns, reliability of service, trust (for financial organizations, MNOs and retailers) and perception about incurring hidden charges. In addition M1 also spoke about trust, that majority of the customers are aware of the economic situation in Nigeria, which is due to lack of basic infrastructures required and this has created fear into the mind of consumers about the service. It also affects the perception of prospective and existing users. B1 further added that reliability of service is a factor that also affect customers intention to use m-money, he justified this from the perspective of access, stating that customers are worried about 24/7 access to real time information, and added that consumers are not assured of the delivery of high quality service round the clock, considering the nature of the electricity supply in the country. M1 similarly added that in terms of reliability, customers are worried about delay in their monetary transaction, putting in mind the internet facility in Nigeria which has discouraged many customers, as they would rather still go to the physical banks, where they are guaranteed of no interruption in their service delivery. Furthermore, M1 spoke about customers perception regarding hidden cost while using the service, he stated that the feedback they have received so far has shown customers concerns, about the extra tariffs that come with using the service, which were not originally stated in their transactions and noted that this is also a major concern to some customers.

The fourth question (Q4) addresses what measures have been put in place to address the worries of customers? M1 spoke about the necessity to educate customers on security measures they should observe, to ensure safety of their device. He stated that customers should be made aware of the importance of passwords which should be kept confidential and also ensure mobile phones have pass-codes in case of theft. Similarly Ezeoha (2006) posits in his research that, security issues with transactions, does not solely depend on banks, but is also the responsibility of consumers to ensure they take necessary security measures as well. B1 also added that, the bank ensures customers get an email and text message confirmation, for every transaction they perform with the service and so that they can keep track of their transactions.

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The fifth question (Q5) was to find out what they thought was of utmost importance to customers about their use of the service? With respect to this question, B1 and M1 gave similar answers to the fact that every customer wants the ability to conveniently, easily and safely make payments. Following CBNs guidelines regarding mobile payments, both financial institutions and telecoms provider are striving to provide a safe, quality and an efficient payment system to consumers. Both respondents gave similar answers as to what they thought was of utmost importance to customers to be, privacy, security of payment transactions, trust, convenience and mobility. Security of every transaction made by consumers, privacy of their personal and sensitive data and information, trusting financial institutions, retailers and MNOs for a quality, reliable and effective service, and the ability to carry out transactions at any place and at anytime without any restrictions is of utmost importance.

The sixth question (Q6) investigates challenges being faced in successfully implementing mobile money? It was noted by the interviewer that M1 found this question an important area of interest, as he spoke in length that the main challenge MNOs are facing in implementing m-money, is the regulatory framework by CBN which excludes telecom operators from taking the lead role, even though they provide the necessary technological platform and made substantial investments towards the achievement of a robust and secured mobile payment system in Nigeria. He further added that in countries where m- money has been successfully adopted, telecom operators have the lead role. He gave an example stating that MTN launched m-money service in Uganda in 2009, and within a year they recorded over 500,000 m-money accounts. He was also of the opinion that Nigeria has a huge potential of becoming one of the largest mobile payment market in Africa, if the stakeholders can review the current framework and give mobile network operators the lead role, in the delivery of an efficient mobile payment service in the country. However B1 in contrast to M1 stated that, the key challenges they are facing in implementing m-money is interoperability between network operators, mobile devices and also lack of communications infrastructure. Daily Independent (2010) also supported the lack of communications infrastructures between bank branches, as it was perceived to be unreliable. In reference to interoperability, he added that CBN should look into the issue at this stage, to

10063323 ensure a robust mobile payment system with standards that cuts across all telecoms network providers.

The seventh question (Q7) addresses what they understand by security/privacy and how the organization has delivered these to meet the customers expectations? M1 posits that security is the ability to safeguard the transactions and information of consumers from unauthorized access, as this can help boost the integrity of the organization. He added that a major challenge is that, m-money platforms and innovations are still quite new and lack of experience on the part of the consumer as well as rapid changes in the ICT sector are resulting in vulnerabilities which need to be urgently addressed. Furthermore, he added that with the recorded growth in number of consumers, his organization is looking into adopting a Secure Mobile Information Platform, based on the Advanced Encryption Standard (AES). He described the AES as a military grade Encryption, with up to 256bits encryption, which would enable a secured end-to-end encryption of messages from the handset, over the air, through the mobile networks, to the mobile payment platform and vice versa. Nevertheless, B1 on the otherhand added that in terms of security, customers have a certain level of perceived security risk about m-money and banks in general and it is necessary for the bank to create trust in order to retain a positive bank customer relationship. In order to meet their customers expectations, they limited transaction values by putting a fixed amount of transaction that can be done in a day and a maximum number of transactions in a given period of time.

And lastly, (Q8) investigates what future plans they have for the service with regards to improving and expanding the service? M1 stated their aim to reach their target of one million customers before the end of 2015, as this would enable them introduce more effective products to the already existing products. They also planned to spread the service to other major and rural areas in Nigeria, which would also increase their agent base and also provide job opportunities for a number of unemployed masses, as they can act as retailers in different zones in the federation. In addition M1 added that the SMS is the current technology being used for m-money and in the future they hope to implement m-money using NFC technology. B1 added that their plan for the future is to partner with more telecom operators, so as to provide financial services for consumers which would help boost their organizations productivity and image.

10063323 However, to ensure all research aims and objectives where met, including answering the research questions, the researcher found it necessary to include the following; Research Question 1: What are the factors which influence customers intention to use mobile money in Nigeria? Objective two of this research was to identify factors which influenced customers intention to use mobile money in Nigeria. With respect to the findings above, the factors that can affect customers intention to use mobile money in Nigeria include Perceived Ease of Use, Perceived Usefulness, Security/Privacy, Convenience and Trust, with convenience being the most significant factor.

Research Question 2: Does security/privacy, have an effect on customers intention to use mobile money in Nigeria? With respect to the result and assessment mentioned above, the subsequent conclusions can be stated. A large number of the customers in Nigeria have shown concerns about the security/privacy issues associated with m-money. This was also noted from the interview carried out; that it was a major concern, as investigation with the bank officials and the mobile money provider during the interview also indicates that the responses received from consumers mainly has to with security and privacy issues about their services. Therefore, it can be said that security/privacy concerns with mobile money will influence customers intention to use mobile money in Nigeria.

Research Question 3: Which of the factors is most significant and can influence a customers intention to use mobile money? Convenience can be seen from the research to be the most important influencing factor for mobile money in Nigeria. This finding indicates that consumers are inclined to use mobile money when they perceive that it is convenience for them, therefore mobile money providers, mobile network providers and financial institutions should develop suitable strategies in order to focus on the needs of its customers. This was also supported from the interviews with the officials.

10063323 Research Question 4; has perceived usefulness and perceived ease of use influenced customers intention to use mobile money in Nigeria? Findings from the research show that, customers perceived usefulness has a positive significant effect on their intention to use mobile money in Nigeria. It therefore implies that, a users intention to use mobile money will increase if they find it useful, Similarly, in assessing the relationship between perceived ease of use and intention to use, the findings from this research has shown that perceived ease of use has a significant effect on customers intention to use mobile money in Nigeria, since it was found to be significant from the hypotheses test carried out. In conclusion, perceived ease of use and perceived usefulness will influence a customers intention to use m-money in Nigeria.

6.3 Summary of discussion chapter This chapter discusses the results from the analysis of the survey and also discusses the semistructured interview. The next chapter presents an evaluation of the Barclays Pingit mobile service with prospective users.

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CHAPTER SEVEN - AN EVALUATION OF BARCLAYS PINGIT


The Barclays Pingit mobile payment service is a contactless mobile payment system and is Europes foremost mobile money-sending service which allows its current account holders send and receive cash using their mobile devices (Brignall, 2012). Brignall (2012) also discussed that a Barclays customer would be able to send money if they have a UK current account, a UK mobile number and by downloading the Barclays mobile Pingit application onto their mobile device. In addition, current account holders with a different bank in the UK would also be able to make use of the service. When registered, the bank links up the customers current account with their mobile phones so they would be able to make payments through the service. However, customers with current accounts with a different bank would have a Pingit wallet account set up for them, which would also be linked to their mobile phones. In regards to statistics Swann (2012) discussed that, since the launch of the Pingit application since February (2012) over 700,000 customers are registered to the service. According to Barclays Online (2012), a group of banking safety experts and mobile applications security experts were brought together to work to ensure security in using the service. They built an industry standard encryption into the Pingit application, which enables all information stored in it to be secured for consumers. They also added that in the event of the mobile phone being stolen, the application can be blocked and all data clears off automatically from the phone, so no one can access the service. Furthermore, all payments made through the Pingit app are completely traceable so customers are assured of where their money is being transferred to (Barclays online, 2012).

7.1 Making a payment using Pingit According to Barclays (2012), to make a payment using Barclays Pingit service, consumers need to have enough money on their current account, while non Barclays users top up their Pingit wallet. Payments can be made by first choosing from your mobile contact who you want to make the payment to or typing in their phone numbers. Secondly, the consumer then chooses how much they want to send and then confirms the payment.

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7.2 Pilot Test with the Pingit Service An evaluation of the Pingit mobile service was carried out with non-users (prospective users) of mobile payments, in order to obtain their perceptions before and after using the service. The researcher started by explaining to them what mobile payment is and what the research was about. In addition, the Barclays mobile Pingit service, which can be used to send funds, international remittances, pay bills, and also for mobile top-up was found suitable to use, since it was closely related to the Nigerian mobile money service. The service was tried out using two non-users. NU1 and NU2 was used to represent non-user one and non-user two respectively. It was found imperative to ask them the following questions before carrying out the trial payment. The first question addressed their usage with sending SMS. NU1 and NU2 answered similarly that they send SMS frequently and its an easy way to send messages, since it helps them save the cost incurred from calling. The second question explored what kind of mobile payment services they currently use. NU1 and NU2 are aware of the different types of mobile payment services available, but currently use mobile banking. The third question addressed how good they were with using a new technology. Since NU1 and NU2 are young adults, they both stated that they find it easy to use a new technology as they can easily understand it. This is supported from the survey among users in Nigeria as the percentage of people who currently use mobile money for different purposes are among the young age group. The fourth question was to identify the factors they consider important when choosing a form of payment system for monetary transactions. Again NU1 and NU2 gave similar responses which include increased security, high quality of service, reliability and ease to use the service. Nevertheless, the trial was then carried out between the researcher and the nonusers. The following figures, (See Appendix VI) shows each stage of the registration process. However, since both users where non-account holders the Pingit wallet account was created. As seen from the figures, on start up the bank briefly stated what the service was about and also required the user to create a five digit passcode for security purposes. It was noted that

10063323 NU1 entered a passcode with 5digits in a descending order (e.g. 98765) and the passcode was rejected with an instruction to use random numbers, which is a form of security for the service. Consequently, the registration process with Barclays Pingit was in three steps. The first step required the user to enter their details, which includes; name, address, bank account details, phone number, sex and date of birth. The second step links up the users mobile number with their bank account and to validate the service, a SMS was sent to the users phone number with a verification code. Consequently, the code was then keyed into the application and the account verified which was found to be another security measure. The third step required the user to verify their bank account. In this case, Barclays sent a penny to the users bank account and then required the user to check their bank statement for a six digit numerical portion verification code. After this was done, the wallet account was then created and validated. A test payment was then made between NU1 and NU2; this is due to the fact that the service required both users to be registered before any transactions can be made. In this case NU1 was sending a payment of 1 to NU2. NU1 was then required to top up the Pingit wallet from his own bank account. A SMS confirmation was then sent to NU1 to confirm if he has authorized the transaction to take place, after which he acknowledges the payment completes. However, after the trial with the recipients, the researcher then asked the following questions; The first question addressed their views and opinions about the service. NU1 stressed on the usefulness of the service, as he can easily top up his mobile phone and easily make transfers and this was also similar to the views of NU2. Question two explored their thoughts about the registration process? NU1 found the service interesting, and added that the registrations process was easy and straightforward. This was in contrast to NU2 who added that the registration process was lengthy and he would lack the patience and time to fill out the forms. In his view the registration process could have been made simpler and short. The third question addressed their views about the security measures used in the service. NU1 and NU2 had similar thoughts about the security measures. NU1 explained that if he exits the application during the registration process, he was required to start again from the beginning. NU2 also added that there is an assurance of no unauthorized transaction from his bank account, as he is required to top up his Pingit wallet himself. They also stressed about

10063323 the use of a random passcode, stating that it would be difficult for an unauthorised person to figure out in case of theft. The fourth question investigates if they would they use the Pingit service and what would influence their intention to continue to use this service. NU1 discussed that he would use the service again, especially for mobile top-up, while stating that increased security and no extra charges incurred would be his main reason to continue to use the service. NU2 in addition also stated that he is likely to use the service but not often, as he still enjoys the more traditional way of carrying out monetary transactions. Moreso, the researcher noted that the Pingit service can be used to make international transfers to Kenya and this is due to the fact that Kenyas mobile money service is well known, as can be seen from their launching the Pingit service in Kenya.

7.3 Summary of the Evaluation Chapter The next chapter would conclude the research work, and present a summary and review of the study, recommendations and suggestions for future research.

10063323 CHAPTER EIGHT - CONCLUSION AND RECOMMENDATIONS This chapter summarises and concludes this research and also provides recommendation for future work. This chapter also puts into consideration the main objectives of the research to ensure it has been met, where Zikmund et al. (2009) stated that the conclusion of a study establishes that the aims and objectives of the study has been met, and offers a stand for concluding the study. As a guide from prior research, the researcher proposed a model using the TAM which was developed by David (1989), to assess consumers acceptance of a new technology by adding three additional constructs which are security/privacy, convenience and trust. Based on the proposed theoretical model, the researcher examines the factors that can influence consumers intention to use mobile money in Nigeria. The theoretical model employs five constructs which are perceived usefulness, perceived ease of use, convenience, security/privacy and trust measured against 18 items in the questionnaire. The above constructs where applied, to investigate the factors that affects a customers intention to use mobile money and this served as a guide to the researcher in order to determine the areas of concerns of mobile money users. TAM was used for identifying the various aspects that requires more managerial attention by m-money providers. The research was conducted using questionnaires and semi-structured interviews with responses from 59 respondents, which has been used for the analysis. However, it was noted that a large number of the respondents were within the age range of 18-45years and also most of the respondents were students, professionals and the self-employed. There was also a slight difference between male and female respondents, which specifies that there was no bias among either males or females in their choice to use m-money. In order to ensure validity of data used, statistical tests were used to evaluate the data, Microsoft Excel and SPSS was adapted. Cronbachs test was used to measure the reliability and internal consistency of the constructs used in the model and they were found to have a high internal consistency, which proves that they are reliable. The Chi-Squared test was used to test the hypotheses that were proposed from the research model, which was useful to check the significant relationship of the hypotheses in relation to the focus and findings from literature. Pearson correlation coefficient was used to check if there was a relationship between security/privacy and trust, regression analysis was adopted to explore the predictive ability of a set of independent variables on one continuous variable (Pallant, 2007).

10063323 Results from the research have shown that perceived usefulness, perceived ease of use, security/privacy, trust and convenience have an influence on customers intention to use mmoney, as they were found to be significant. Convenience was found to be the most important influencing factor, while Perceived Ease of Use was the least influencing factor in determining customers intention to use. On the otherhand, security/privacy of payment details and trust of MNOs and financial institutions are positively correlated as seen from H7. Where Pallant (2007) posits that a positive correlation indicates that as one variable increases, the other increases as well, and this indicates that increased security in mobile transactions, would increase customers trust in financial institutions, mobile network operators and retailers. In addition, there was a significant positive effect of perceived ease of use on the perceived usefulness of mobile money, which implies that those who consider mobile money convenient and easy to use also perceive it to be useful.

Consequently, the interview was carried out with two different officials; a bank official and a mobile money provider from Pagatech, which is one of Nigerias leading m-money providers, to further investigate areas of concern. Results from the interview confirmed findings from the survey in terms of security/privacy being main concerns and worries for consumers, as a large number of respondents disagreed to trusting mobile network operators, financial institutions and retailers, having the assurance that their personal data is secured and having assurance of no vague transactions. The above listed items represent the security/privacy construct used in the research. Mobile money as seen from literatures reviewed is experiencing growth globally; an example is the Pingit was currently launched in Kenya as well as the UK. In reference to Nigeria, aside from the regulatory issues, they still share the same similarities with Kenya e.g. high demand for P2P payments, international payments and a high demand for secure mobile payment solutions. In conclusion, findings from the research points out that mobile money providers and developers need to build on these factors and more, when developing new services to ensure its growth.

8.1 Research Limitations and Suggestion for Future Studies According to Bell (no date), research studies are prone to constraints, no matter how good it was carried out. Bryman and Bell (2007) also argued that limitations consist of constrictions that influence the accomplishment of the research. However, there are quite a few limitations

10063323 in this research study. Firstly, this research is determined from the perspective of mobile money users in Nigeria, however, while the idea of conducting a study in Nigeria will provide insights into customers expectations, future study can apply the model used in this study to other developing countries as well. In addition, there might be dissimilar attitudes with consumers, if the same study is carried out in a different context.

Secondly, the factors assessed in this research may not cover all the reasons that can influence a consumers intention to use mobile money in Nigeria. Therefore further studies can look into factors such as regulations and cultural issues, which might also influence intention to use. In addition, the number of questionnaires sent out to respondents, for data collection and to test the theoretical model was small, although the reliability of the theoretical model has been proven satisfactory, further testing can be carried out with a larger number of respondents.

Thirdly, secondary data was also included in this study, therefore misinterpreting the data in the process of executing the research is possible, and drawing from Thompson and Corti (2004), the misinterpretation of data may be due to fear of the opportunistic and selective interpretation of re-analysis. In other words, the development of intellectual understanding and short period of time, available for carrying out the research could bring about the misinterpretation of data.

Fourthly, the small number of interviewees used for this research, can affect the results as a wide range of responses would provide better understanding. Therefore, future studies can include more interviewees to further strengthen the data collected. It is also crucial to understand that an interviewers ability to perform a telephone interview could affect the questions being asked, which may in turn affect the results gotten from the respondents. In addition cost was also a major limitation to this study, since the cost of visiting Nigeria to undertake this research will be very expensive. A fifth limitation to this research will be the issue of bias among the respondents used for the interview. Since the interview questions were sent to the respondents for approval before the interview was conducted, there is a chance that each of the respondents may have framed their replies to suit their interest. Where Bell (1999) posits that interviews are highly subjective techniques and the issue of bias cannot be disregarded.

10063323 8.2 Managerial Recommendations The results of this research have brought about a guide to a number of strategies, which can be employed for the different parties of interest for mobile money in Nigeria and also in the UK. For financial institutions and mobile money providers, the need to recognize the factors that affect customers intention to use mobile money should be put into consideration, so as to increase its use and encourage its general acceptance. This is due to the fact that the success and growth of the service lies in the hands of the consumers. In terms of security/privacy, it is imperative for financial institutions to have a comprehensive security scheme, so as to allow for secured transactions and safety of personal sensitive information. In addition, making customers aware of the importance of security and privacy of mobile money services is vital to protect their personal information and money, because as shown in the results from the study security/privacy was one of the key factors that influence customers intention to use m-money.

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APPENDICES APPENDIX I REQUEST FOR INTERVIEW

Faculty of Advanced Technology University of Glamorgan Trefforest Campus CF37 1TH United Kingdom August 12, 2012 Dear Respondent, REQUEST FOR INTERVIEW I am currently a postgraduate student in the University of Glamorgan, pursuing a master's program in Mobile Telecommunications Management, conducting a research on factors that influences a customers intention to use mobile money in Nigeria; the interview is an integral part of my dissertation, which is a requirement for the completion of my Masters of Science in Mobile Telecommunications Management. The interview will last for a maximum of 10mins, I fully appreciate your time in completing this interview, for the purpose of this research, this call would be recorded and be rest guaranteed that your answers would be utilized solely for the research objective and dealt with confidentially. Thank you for your time. I would appreciate it if I can receive your feedback on or before 15th of August 2012, for an alternative time that would fit your schedule in your response. If you have any questions please do not hesitate to contact me on +447586513757 or 10063323@glam.ac.uk and jasmineodia@gmail.com. The credibility of the research lies on your candid answers. Please respond to the questions sincerely as it applies to you. Thank you for your kind co-operation.

10063323 Yours sincerely, Odia Jasmine Omoye APPENDIX II - SEMI STRUCTURED INTERVIEW QUESTIONS Interview Guide for Officials 1. What kind of mobile money services is being offered to customers? 2. How has mobile money helped improve your organizations productivity? 3. What are the known fears and concerns about mobile money? 4. What known measures have been put in place to address the worries and concerns of consumers? 5. What exactly do you think is of utmost importance to customers about their use of the service? 6. What are the Challenges or Problems being faced in successfully implementing the mobile money service? 7. What do you understand by security/privacy? How has your organization delivered this to meet customers expectations? 8. What future plans do you have towards improving and expanding the service?

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APPENDIX III: DESCRIPTION OF PARTICIPANTS

Participant

Age

Level of education

Years of working experience

Positions held in the company

Mr Arowosafe (M1)

45-55

MBA

Senior Manager, Payments System Division, Pagatech

Mr Ihimekpen (B1)

30-35

MSc

Assistant Manager , Electronic Banking, Guarantee Trust Bank PLC

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APPENDIX IV QUESTIONNAIRE Dear Respondent, The aim of this survey is to investigate factors that influence customers intention to use mobile money in Nigeria. Please, kindly indicate your responses as candidly as possible. The data you provide will be treated in confidence and used only for academic purposes. Thank you for your anticipated cooperation. General Question SECTION A: DEMOGRAPHIC CHARACTERISTICS (Please tick the most suitable option or fill the space provided) (a) Gender Male ( ) Female ( )

(b) Age-Range 18 25 56 65 ( ) 26 35 ( ) 36 45 ( ) 46 55 ( )

( )

65+

( )

(c) Highest level of Education Primary ( ) Secondary ( ) HND/Degree ( )

Bachelors

( )

Professional

( )

Masters

( )

Doctorate

( )

Other

( )

(d) Occupation

10063323 Student ( ) Trainee ( ) Professional ( )

Self-employed ( )

Unemployed

( )

Retired

( )

Other SECTION B

( )

(a) How long have you been using mobile money services? Less than 3months ( ) Less than 5months ( ) More than a year ( )

(b) I use mobile money for.... Mobile airtime top-up ( ) and family ( ) others ( ) pay for goods and service ( ) transfer money to friends

(c) I would you like to use mobile money for....? Make fairly large transactions ( ) Make international transfers ( ) pay bills ( ) others ( )

SECTION C: Based on your experiences as a customer of mobile money services, please provide information on your perception about the service you use in comparison to your expectations. Please indicate to which extent you agree with each of the following statements NOTE: 1= strongly disagree, 2= disagree, 3= neither agree nor disagree, 4=agree, 5= strongly agree) 1. I find mobile money service easy to use 2. Sending SMS is easy 3. The registration procedures is easy for me 4. I find mobile money a useful way of making payment 5. Mobile money helps save time 6. Using mobile money makes it easier to conduct transactions 7. I can completely trust financial institutions 8. mobile network operators and retailers can be trusted

10063323 9. I expect mobile money service to continue even in the future 10. There is no security threat with mobile money 11. I have assurance of no vague transactions 12. I am confident that my personal data is secured 13. I enjoy making purchases with my mobile phone 14. I believe it is a good idea to use mobile money for making payments 15. I intend to use mobile money more frequently for payments 16. Mobile money is convenient because my phone is always with me 17. Mobile money is convenient because I can use it anywhere and at anytime 18. Mobile money meets my transaction needs

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10063323 APPENDIX V DESCRIPTION OF THE QUESTIONS PERTAINING TO EACH CONSTRUCT IN THE QUESTIONNAIRE AND THE SOURCES

Construct Perceived of Use Ease

Measured Items

Source

I find mobile money service easy to use Sending SMS is easy The registration procedures is easy for me

Wang and Barnes (2007), Luarn and Lin (2005), Chew

Perceived Usefulness I find mobile money a useful way of making payment Mobile money helps save time Wang and Barnes (2007), Luarn and Lin (2005),

Using mobile money makes it easier to conduct Chew transactions

Security/Privacy

There is no security threat with mobile money I have assurance of no vague transactions I am confident that my personal data is secured

Mallat, 2007

Davis (1989); Liao et al. Intention to Use

I enjoy making purchases with my mobile (2007); phone I believe it is a good idea to use mobile money for making payments I intend to use mobile money more frequently for payments 1. I can completely trust financial
(2006)

Kurnia

et

al.

Trust

institutions

Dalhberg et al., 2003 and

10063323 2. mobile network operators and retailers Gefen et al., 2003 can be trusted 3. I expect mobile money service to continue even in the future
Convenience

1.

Mobile money is convenient because my phone is always with me Ventakesh et al., 2003

2. Mobile money is convenient because I can use it anywhere and at anytime 3. Mobile money meets my transaction needs

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APPENDIX VI - TABLES FOR QUESTIONNAIRES


Table 1: Descriptive Statistics for Demographics

Variable
Age 18-25 26-35 36-45 46-55 56-65 65+ Gender Male Female Occupation Student Professionals Self Employed Unemployed Retired Others

Frequency
13 14 15 8 7 2 30 29 13 15 13 8 7 3

Percentage
22.0 23.7 25.4 13.6 11.9 3.4 50.8 49.2 22.0 25.4 22.0 13.6 11.9 5.1

Table 2: Mean and standard deviation for Constructs

Descriptive Statistics Mean IU PEOU PU TRUST SECURITYPRIVACY CONVENIENCE 3.96 4.02 4.30 2.92 2.23 3.94 Std. Deviation .578 .829 .559 1.024 .801 .641 N 59 59 59 59 59 59

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Table 3: Frequency Table for How long have you been using mobile money
How long have you been using mobile money? Cumulative Frequency Valid Less than three months Less than five months More than a year Total 10 16 33 59 Percent 16.9 27.1 55.9 100.0 Valid Percent 16.9 27.1 55.9 100.0 Percent 16.9 44.1 100.0

Table 4: Frequency Table for I use mobile money for


I use mobile money for? Cumulative Frequency Valid Mobile Airtime top-up Pay for goods and services Transfer money to friends and family Others Total 9 59 15.3 96.6 15.8 100.0 100.0 15 19 14 Percent 25.4 32.2 23.7 Valid Percent 26.3 33.3 24.6 Percent 26.3 59.6 84.2

Total

59

100.0

Table 5: Frequency Table for I would like to use mobile money for

I would like to use mobile money to...... Cumulative Frequency Valid Make fairly large transactions Make international money transfers 16 27.1 27.1 50.8 14 Percent 23.7 Valid Percent 23.7 Percent 23.7

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Pay bills Others Total

22 7 59

37.3 11.9 100.0

37.3 11.9 100.0

88.1 100.0

Table 6: I find mobile money easy to use

PEOU 1 Cumulative Frequency Valid Disagree Neutral Agree Strongly Agree Total 3 4 34 18 59 Percent 5.1 6.8 57.6 30.5 100.0 Valid Percent 5.1 6.8 57.6 30.5 100.0 Percent 5.1 11.9 69.5 100.0

Table 7: Sending SMS is easy

PEOU 2 Cumulative Frequency Valid Disagree Neutral Agree 4 4 30 Percent 6.8 6.8 50.8 Valid Percent 6.8 6.8 50.8 Percent 6.8 13.6 64.4

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Strongly Agree Total

21 59

35.6 100.0

35.6 100.0

100.0

Table 8: The registration process for mobile money is easy

PEOU 3 Cumulative Frequency Valid Strongly Disagree Disagree Neutral Agree Strongly Agree Total 5 6 3 29 16 59 Percent 8.5 10.2 5.1 49.2 27.1 100.0 Valid Percent 8.5 10.2 5.1 49.2 27.1 100.0 Percent 8.5 18.6 23.7 72.9 100.0

Table 9: I find m-money a useful way to make payments

PU 1 Cumulative Frequency Valid Disagree Neutral Agree Strongly Agree 1 2 37 19 Percent 1.7 3.4 62.7 32.2 Valid Percent 1.7 3.4 62.7 32.2 Percent 1.7 5.1 67.8 100.0

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PU 1 Cumulative Frequency Valid Disagree Neutral Agree Strongly Agree Total 1 2 37 19 59 Percent 1.7 3.4 62.7 32.2 100.0 Valid Percent 1.7 3.4 62.7 32.2 100.0 Percent 1.7 5.1 67.8 100.0

Table 10: Mobile money saves time

PU 2 Cumulative Frequency Valid Disagree Agree Strongly Agree Total 1 35 23 59 Percent 1.7 59.3 39.0 100.0 Valid Percent 1.7 59.3 39.0 100.0 Percent 1.7 61.0 100.0

Table 11: Using money mobile makes it easy to conduct transactions

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PU 3 Cumulative Frequency Valid Disagree Neutral Agree Strongly Agree Total 1 5 29 24 59 Percent 1.7 8.5 49.2 40.7 100.0 Valid Percent 1.7 8.5 49.2 40.7 100.0 Percent 1.7 10.2 59.3 100.0

Table 12: I can completely trust financial institutions

TRUST 1 Cumulative Frequency Valid Strongly Disagree Disagree Neutral Agree Strongly Agree Total 9 18 13 17 2 59 Percent 15.3 30.5 22.0 28.8 3.4 100.0 Valid Percent 15.3 30.5 22.0 28.8 3.4 100.0 Percent 15.3 45.8 67.8 96.6 100.0

Table 13: Mobile Network Operators and retailers can be trusted

TRUST 2

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Cumulative Frequency Valid Strongly Disagree Disagree Neutral Agree Strongly Agree Total 8 21 13 14 3 59 Percent 13.6 35.6 22.0 23.7 5.1 100.0 Valid Percent 13.6 35.6 22.0 23.7 5.1 100.0 Percent 13.6 49.2 71.2 94.9 100.0

Table 14: I expect mobile money service to continue in future


TRUST 3 Cumulative Frequency Valid Strongly Disagree Disagree Neutral Agree Strongly Agree Total 5 10 13 25 6 59 Percent 8.5 16.9 22.0 42.4 10.2 100.0 Valid Percent 8.5 16.9 22.0 42.4 10.2 100.0 Percent 8.5 25.4 47.5 89.8 100.0

Table 15: There is no security threat with mobile money


SECURITY/PRIVACY 1 Cumulative Frequency Percent Valid Percent Percent

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Valid

Strongly Disagree Disagree Neutral Agree Strongly Agree Total

10 35 10 3 1 59

16.9 59.3 16.9 5.1 1.7 100.0

16.9 59.3 16.9 5.1 1.7 100.0

16.9 76.3 93.2 98.3 100.0

Table 16: I have assurance of no vague transactions

SECURITY/PRIVACY 2 Cumulative Frequency Valid Strongly Disagree Disagree Neutral Agree Strongly Agree Total 9 30 16 3 1 59 Percent 15.3 50.8 27.1 5.1 1.7 100.0 Valid Percent 15.3 50.8 27.1 5.1 1.7 100.0 Percent 15.3 66.1 93.2 98.3 100.0

Table 17: I am confident my personal data is secured

SECURITY/PRIVACY 3 Cumulative Frequency Percent Valid Percent Percent

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Valid

Strongly Disagree Disagree Neutral Agree Strongly Agree Total

11 33 5 9 1 59

18.6 55.9 8.5 15.3 1.7 100.0

18.6 55.9 8.5 15.3 1.7 100.0

18.6 74.6 83.1 98.3 100.0

Table 18: Mobile money is convenient because my phone is always with me


CONVENIENCE 1 Cumulative Frequency Valid Disagree Neutral Agree Strongly Agree Total 4 11 30 13 59 Percent 6.9 19.0 51.7 22.4 100.0 Valid Percent 6.9 19.0 51.7 22.4 100.0 Percent 6.9 25.9 77.6 100.0

Total

59

100.0

Table 19: Mobile money is convenient because I can use it anywhere and at anytime
CONVENIENCE 2 Cumulative Frequency Valid Disagree Neutral Agree Strongly Agree Total 2 6 38 13 59 Percent 3.4 10.2 64.4 22.0 100.0 Valid Percent 3.4 10.2 64.4 22.0 100.0 Percent 3.4 13.6 78.0 100.0

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Table 20: Mobile money meets my transaction needs


CONVENIENCE 3 Cumulative Frequency Valid Disagree Neutral Agree Strongly Agree Total 3 10 37 9 59 Percent 5.1 16.9 62.7 15.3 100.0 Valid Percent 5.1 16.9 62.7 15.3 100.0 Percent 5.1 22.0 84.7 100.0

10063323 APPENDIX VII LIST OF FIGURES

Figure 1: Example of M-PESA cash Remittance (Source: Nyaoma, 2010, p.7)

Figure 2: The Research Onion (Saunders et al, 2009, p.108)

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Figure 3: Overview of MPESA Service (Source: Hughes and Lonie, 2007)

10063323 APPENDIX VIII: EVALUATION OF BARCLAYS PINGIT

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10063323 APPENDIX IX: CROSSTABULATIONS


Figure 1: Descriptive statistics for Crosstabs

Figure 2: Crosstabulation between Age-range and I would like to use mobile money for
Age-Range * I would like to use mobile money to...... Crosstabulation I would like to use mobile money to...... Make fairly large transactions Age-Range 18-25 Count % within Age-Range 26-35 Count % within Age-Range 36-45 Count % within Age-Range 46-55 Count % within Age-Range 56-65 Count 2 15.4% 5 35.7% 4 26.7% 3 37.5% 0 Make international money transfers 1 7.7% 3 21.4% 6 40.0% 4 50.0% 1 Pay bills 8 61.5% 6 42.9% 3 20.0% 0 .0% 5 Others 2 15.4% 0 .0% 2 13.3% 1 12.5% 1 Total 13 100.0% 14 100.0% 15 100.0% 8 100.0% 7

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% within Age-Range 65+ Count % within Age-Range Total Count % within Age-Range

.0% 0 .0% 14 23.7%

14.3% 1 50.0% 16 27.1%

71.4% 0 .0% 22 37.3%

14.3% 1 50.0% 7 11.9%

100.0% 2 100.0% 59 100.0%

Table 3: Crosstabulation between Age-Range and Use of mobile money

Age-Range * I use mobile money for? Crosstabulation I use mobile money for? Transfer money Mobile Airtime top-up Age-Range 18-25 Count % within Age-Range 26-35 Count % within Age-Range 36-45 Count % within Age-Range 46-55 Count % within Age-Range 56-65 Count % within Age-Range 65+ Count % within Age-Range Total Count % within Age-Range 9 75.0% 3 21.4% 1 6.7% 0 .0% 2 33.3% 0 .0% 15 26.3% Pay for goods and services 1 8.3% 6 42.9% 5 33.3% 6 75.0% 1 16.7% 0 .0% 19 33.3% to friends and family 1 8.3% 4 28.6% 5 33.3% 1 12.5% 2 33.3% 1 50.0% 14 24.6% Others 1 8.3% 1 7.1% 4 26.7% 1 12.5% 1 16.7% 1 50.0% 9 15.8% Total 12 100.0% 14 100.0% 15 100.0% 8 100.0% 6 100.0% 2 100.0% 57 100.0%

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Table 4: Crosstabulation between age-range and how long have u been using mobile money
Age-Range * How long have you been using mobile money? Crosstabulation How long have you been using mobile money? Less than three months Age-Range 18-25 Count % within Age-Range 26-35 Count % within Age-Range 36-45 Count % within Age-Range 46-55 Count % within Age-Range 56-65 Count % within Age-Range 65+ Count % within Age-Range Total Count % within Age-Range 4 30.8% 3 21.4% 2 13.3% 0 .0% 1 14.3% 0 .0% 10 16.9% Less than five months 5 38.5% 3 21.4% 5 33.3% 1 12.5% 2 28.6% 0 .0% 16 27.1% More than a year 4 30.8% 8 57.1% 8 53.3% 7 87.5% 4 57.1% 2 100.0% 33 55.9% Total 13 100.0% 14 100.0% 15 100.0% 8 100.0% 7 100.0% 2 100.0% 59 100.0%

10063323 APPENDIX IX - CORRELATION


Correlations SECURITY CONVENI IU Pearson Correlation PEOU PU TRUST .349 .446 .318 1.000 .621 .200 .112 .621 1.000 .099 .047 .200 .099 1.000 .512 .112 .047 .512 1.000 .507 .556 .267 .268 IU 1.000 PEOU .349 PU .446 TRUST PRIVACY .318 .334 ENCE .744

SECURITYPRIV .334 ACY CONVENIENC E Sig. (1-tailed) IU PEOU PU TRUST . .003 .000 .007 .744

.507

.556

.267

.268

1.000

.003 . .000 .064 .198

.000 .000 . .229 .361

.007 .064 .229 . .000

.005 .198 .361 .000 .

.000 .000 .000 .020 .020

SECURITYPRIV .005 ACY CONVENIENC E N IU PEOU PU 59 59 59 .000

.000

.000

.020

.020

59 59 59

59 59 59

59 59 59

59 59 59

59 59 59

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TRUST 59 59 59 59 59 59 59 59 59 59 59

SECURITYPRIV 59 ACY CONVENIENC E 59

59

59

59

59

59

10063323 APPENDIX XI REGRESSION


Coefficientsa Standa Unstandardiz rdized ed Coefficients Coeffic ients 95.0% Confidence Interval for B Correlations ZeroStd. Model 1 B Error .426 Beta t Sig. Lower Upper orde Part Bound Bound r 1.840 ial Collinearit y Statistics Tole ranc Part e VIF

(Constant .986 ) PEOU -.066

2.31 .025 .132 5

.082

-.095

.807

.423 -.230

.098

.349

.568 1.7 61

.110 .071 .373 .446

PU

.121

.126

.117

.958 .342 -.132

.131 .085 .526 1.9 02

TRUST

.049

.059

.087

.831 .410 -.070

.168

.318

.113 .073 .709 1.4 10

SECURITY .082 PRIVACY CONVENI ENCE .607

.076

.114

1.09 .280 -.069 1

.234

.334

.148 .096 .710 1.4 08

.103

.674

5.87 .000 .400 3

.815

.744

.628 .519 .593 1.6 85

a. Dependent Variable: IU

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Model Summaryb Adjusted Model R 1 .766a R Square .586 Square .547 R Std. Error of the Estimate .389

a. Predictors: (Constant), CONVENIENCE, TRUST, PEOU, SECURITYPRIVACY, PU b. Dependent Variable: IU

ANOVAb Sum Model 1 Regression Residual Total Squares 11.348 8.005 19.352 of df 5 53 58 Mean Square F 2.270 .151 15.027 Sig. .000a

a. Predictors: (Constant), CONVENIENCE, TRUST, PEOU, SECURITYPRIVACY, PU b. Dependent Variable: IU

Collinearity Diagnosticsa Variance Proportions

Mod Dimensi Eigenval Condition

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el on ue Index (Consta nt) 1 1 2 3 4 5 6 5.797 .110 .054 .020 .012 .006 1.000 7.247 10.364 16.835 21.797 30.863 .00 .01 .00 .22 .26 .51 PEOU .00 .02 .00 .70 .08 .20 PU .00 .01 .00 .01 .01 .97 SECURITY TRUST PRIVACY .00 .20 .79 .00 .00 .01 .00 .28 .65 .04 .01 .02 CONVENIE NCE .00 .01 .00 .02 .88 .09

a. Dependent Variable: IU

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