 The developments in mobile technologies have had tremendous effects on the

physical products side and the nature of services provided in the world today.
 Mobile technology is used by mobile money, a revolutionary financial service, to enable
safe and practical financial transactions, especially in areas with poor access to traditional
banking infrastructure.
 mobile money services are designed primarily for financial inclusion, targeting unbanked
and underbanked populations worldwide.
 Mobile money new digital financial products and platforms emerging rapidly
 The fast pace of economic digitalization in the financial sector is changing the way people
access and use financial services, with new digital financial products and platforms emerging
rapidly.
 Mobile money services are being deployed rapidly across emerging markets as a key tool to
further the goal of financial inclusion.
 In the rapidly evolving landscape of digital finance, mobile money services are the
prominent technologies that emerged as key players.
 Mobile money service allows mobile users to perform financial transactions using their
mobile phones which helps to decline the physical use of money.
 The reach of mobile telephony networks is much larger than that of the formal banking sector
 Fundamentally, mobile money allows users to save money digitally, pay bills, transfer
money, make payments, and perform other financial operations using their mobile
phones.

 Mobile financial service is among the alternative solutions that the universe is implementing
in order to modernize telecom services.
Mobile money is defined as an electronic wallet, which is a transactional account linked to a mobile
phone number (connected to a SIM card), instead of an account number in conventional banking.

mobile money services are now accessible to more people in Africa’s largest economy.

To bridging the financial inclusion gap of the nation

It is helping level the playing field for small farmers because most of Ethiopian citizens live in rural areas
that they cannot get banking access easily.

Mobile money, facilitated through mobile phones, especially but not exclusively smart phones,
offers a viable solution to bridge the financial inclusion gap. It allows individuals to access basic
financial services, conduct transactions, make payments, and manage their finances through their
mobile devices, even in the absence of traditional banking infrastructure. Mobile money has
proven to be a game-changer in many countries around the world, enabling financial inclusion
and driving economic growth.
To delivering fast and easy financial services to citizens at their convenient
The increase in financial technology usage is reshaping our financial world.
People’s money is easier to access, and there is more they can do with it.
Telebirr provides new ways to share, save, invest, and manage money—
making life better for the people it touches while helping reach those
underserved by legacy financial options.

 To facilitates the delivery of cashless transactions that customers can deposit, receive
and transfer money using their mobile phones in areas where network service is
available.
mobile money, people can transfer and receive money across large distances, store money
safely, and access financial services such as saving, credit, insurance, pay utility bills and receive
salaries in a time-consuming manner.
 To modernize their services and make all payments possible in one stop, thereby
getting their customers’ service delivery convenient.
Accurate and timely reconciliation is one of the benefits of modern payments.

Research Questions
• What are factors affecting adoption of telebirr mobile money service in Addis Ababa?
Here there are many factors that affect the adoption of telebirr mobile money service like
Infrastructure: The availability and quality of telecommunication infrastructure, including
network coverage andinternet access, play a vital role in the successful adoption of Tele Birr.

Trust and Security: Building trust and ensuring security are paramount for digital financial transactions.
Robustsecurity measures, such as encryption and two-factor authentication, foster user confidence and
drive adoption.

The study is based on the Technology Acceptance Model (TAM) like perceived ease of
use, perceived usefulness, perceived trust, and perceived risk and perceived cost that are the
factors influencing the adoption of Tele Birr services in Ethiopia.
We currently live in a world in which more Africans have access to a mobile phone than to any other
utility or infrastructure service.
Mobile money has become a preferred mode of accessing financial services particularly in countries
without deep banking penetration and with limited infrastructure. It has played a significant role in
facilitating financial inclusion in some of these economies.

Mobile financial services are among the most promising mobile applications in the developing world.
Mobile money could become a general platform that transforms entire economies, as it is adopted
across commerce, health care, agriculture, and other sectors.

Mobile money services are becoming increasingly popular around the world as
a safe and convenient way to transfer money (Luna et al., 2019) These services
allow users to make payments and transfer funds electronically, often via a
mobile phone. Mobile money services have been used for a wide variety of
purposes ranging from paying bills, transferring money across borders, and
making purchases online
Poverty is more than just a lack of money. It involves a lack of access to the instruments and means
through which the poor could improve their lives. Exclusion from the formal financial system has
increasingly been identified as one of the barriers to a world without poverty.

Mobile money systems can be made available wherever there is wireless phone service, helping to
overcome distance, as well as the lack of branch offices in rural areas.

Significance
The purpose of the current study is to examine the factors affecting the adoption telebirr mobile money
services to help ethio telecom to understand and improve the service in order to gather the expected
benefits.

In this study, adoption of telebirr mobile money services has been measured in different angels (Using
TAM model) such as perceived ease of use, perceived risk, perceived usefulness, perceived cost and
perceived trust.

 The results of this study provide good evidence for Ethio telecom to further improve their
working practices in current technology and to increase overall penetration of telebirr mobile
money service.

Inherent benefits

Mobile money is often successful because it is considerably cheaper than other alternatives to cash.

To use mobile money services, customers usually need to register with a mobile money agent—typically
small, local retail stores—of the mobile money service provider and obtain an individual virtual account
linked to their mobile phone number, accessible through a SIM card. A bank account is not required to
use these services—the services may be accessed only with a basic mobile phone. Mobile money
customers can credit funds into the mobile money account by giving cash to a mobile money agent, and
in return, receive “mobile money” of equivalent amount via their mobile phone.4 They use this
electronically stored mobile money to pay their bills, transfer money to their peers, etc. Mobile money
users can also withdraw the money received as salary, deposits, or payments on their mobile money
accounts using a mobile money agent. More recently, some MNOs have started to expand financial
services offered via mobile money, such as interest earning savings and loans. All these activities are
conducted without opening a bank account or visiting a bank branch or an ATM.

The benefits of mobile money have been relatively well documented. Studies have noted that mobile
money is a safe, affordable store of value and means of funds transfer for sections of population with no
access to traditional financial services (Dupas et al., 2018). It has significantly cut transaction costs of
money transfers and remittances (Jack and Suri, 2014). Other studies have focused on how mobile
money can facilitate efficient informal risks-sharing— by enabling timely transfers of money among
family/community members in times of financial distress. This in turn allows households to smooth their
consumption and make more efficient investment decisions

Research methodology
The study used a quantitative method, as a result, suitable data collection and
analysis strategies were used to augment its reliability. The study used SPSS to
organize the data collected for this study.

Research Methodology

The research methodologies for this study were chosen in order to address the study objectives
relating to factors influencing adoption of telebirr mobile money services in Ethiopia specifically
in the area of Addis Ababa.
Research methods focus on the process used to collect data to make decisions and evaluate the
outcome of the research objective

Research design:

This study employed a quantitative research design that provides the means for testing objectives

through examining the relationship among variables. The study used for mentioned design to

obtain numerical measurements to analyze factors affecting the adoption of telebirr mobile

money services.

The quantitative component was derived from the survey data collected from the customers of

ethio telecom mobile service users.

The survey method was applied whereby the researcher administered a questionnaire instrument

that gave statistical data for analysis

Target Population and Sample size

The target population of this study included mobile users in the area of Addis Ababa. A sample

of 84 respondents was randomly selected from the general population of ethio telecom

customers.

Sampling techniques

The study adopted the probability sampling method to ensure generalizability.

Sampling procedure

The questionnaires were designed based on the research questions. The questionnaires were closed-
ended that were distributed to the community directly by randomly selecting and also some of were
using web based google forms through email.

Before the respondent’s started, the researcher ensured that the participants were aware about the
aims and objectives of the research work.

Sample size

Data source

The study used primary data to collect information from respondents by use of a structured

questionnaire. Close ended questionnaires were used for the study. The survey questionnaire

consisted of three parts. The first section was the subject's demographic information. The

demographic variables included age, gender, and the level of education. The second section had

each of the subject's perceptions of each variable. The third part asked the respondent questions

on telebirr mobile money adoption and were developed on a five point Likert scales ranging

from 1 (Strongly agree) to 5 (Strongly disagree).

Method of data analysis

The statistical analysis performed through descriptive analysis like (mean, median and standard
deviation) and inferential statistics like correlation analysis, and hypothesis testing and regression
analysis.

Data Analysis in this study was carried out using Statistical Package for Social Sciences (SPSS)

software and is based on the descriptive and inferential statistics. After that, descriptive

statistics are used to examine the characteristics of the sample. Then Pearson correlation and

regression analysis are performed to test the hypotheses derived using the conceptual model and

to measure the strength of the relationship.The Cronbach’s alpha indicates how well the items in

a set are positively correlated to one another.

Reliability of the study

Reliability analysis has been conducted by measuring the degree of overall consistency of data to

evaluate the quality of measurement procedure prior to the data analysis. Cronbach’s Alpha test,

one of the most popular techniques was used to estimate the internal consistency of data.

A value above 0.60 is generally accepted as satisfactory internal consistency, 0.70 is adequate

and 0.80 represent a good scale (Hair et al., 2006). As in the below table 3.1 the reliability of the

questionnaire that was tested by using Cronbach’s alpha value is 0.605 and above, so it is

generally considered acceptable for a reliable measurement tool.

Data Analysis and Presentation

This chapter deals with the assessment and presentation of the findings by examine the factors

affecting adoption of telebirr mobile money service in Ethiopia at Addis Ababa.

Analysis of the demographic profile of the respondents

Demographic information provides insights to understand the characteristics of the respondents

who were sampled during the study. This was considered necessary because it helps the study to

understand the targeted group in detail.

• This study were gender, age, education level, monthly income, occupation, profession

and the current trend of respondents

Information about the current trend of telebirr mobile money service

Descriptive Analysis

Descriptive statistic is used to describe the basic features of the data in a study.

To identify the factors affecting on adoption of telebirr mobile money service.

It provides simple summaries about the samples and the measures. Here I used descriptive statistics to
present quantitative descriptions in a manageable form. The mean and standard deviation scores have
been computed for all factors. Mean value provides the idea about the central tendency of the values of
a variable. On the other hand, Standard deviation gives the idea about the dispersion of the values of a
variable from its mean value.

Here the research was focused on the factors that affect telebirr mobile money service using different
variables like PU, PEOU, PR, PT and PC as independent variable and BI as dependent variable.

As a result this table shows that

 Based on the scale (1 –strongly disagree to 5- strongly agree) and the descriptive statistics. The
respondents’ response on perceived usefulness of telebirr mobile money service is shown
evident that the respondents generally agreed, So Here the research was focused on the factors
that affect telebirr mobile money service using different variables like PU, PEOU, PR, PT and PC
as independent variable
 Mean of the intention to use telebirr mobile money is (3.63) and standard deviation (1.19). The
result indicates that users have a highly positive perception to the telebirr mobile money
services which they will continue using up to the coming years
Inferential Analysis

Inferential statistical analysis of data is described in this part, which includes correlation analysis
between adoption of telebirr mobile money service and its determinant factors (independent variable),
coefficient of determination, analysis of variance, and regression analysis.

Correlation Analysis

Here correlation analysis is used to measure the strength or degree of linear association between two
variables(i.e dependent and independent variables) or to assess the relationship of those factors on the
adoption of telebirr mobile money service.

Bivariate correlation coefficient can range from 1 to -1 . With a value of -1 meaning a total negative
linear correlation, 0 indicates there is no correlation, and + 1 00 indicates that a total positive
correlation or there is a complete or perfect correlation.

Here from this table shows that there is no negative or 0.00 correlation coefficient so this implies that
there was a significant correlation between all this independent variables and behavioral intention.

From this result behavioral intention was positively correlated with Perceived ease of use, perceived
cost, perceived risk and perceived trust at 0.758, 0.851, 0.770 and 0.778 respectively with the P value is
P=0.000 but there is a difference in terms of strength and

• Perceived usefulness at correlation coefficient 0.216 with the P value is P < 0.05, so this
indicated that PU is weak positive correlation with the behavioural intention

Regression Analysis

Multiple linear regression analysis was used to examine the effect of Perceived ease of use, perceived
usefulness, perceived awareness, perceived risk, perceived cost and perceived trust on the adoption of
telebirr service. This method is chosen since the study has more than two independent variables to
investigate how independent variables were related to the dependent variable; how each independent
variable influences the dependent variable and how much each variable influence it.

• The R-value explains what percentage of the model is described by the data. In this case, 89.6%
of the data explains the model.

• R square is used to explain the percentage of the independent variables that can be used to
explain the dependent variable.

• In this case, 80.2% of the PT, PEOU, PR, and PT and PC can be used to explain telebirr mobile
money adoption, and the rest (100-80.2=19.8%) is due to unexplained variations(in the adoption
of telebirr service may attribute to other factors).
Regression Coefficient Analysis

Regression coefficient analysis shows the effect of independent variables on the dependent variable.
The significance value of awareness, perceived usefulness, ease of use, and perceived risk was
statistically significant at 0.01 and 0.05 levels of significance in agreement with the hypothesis.

As can be seen in the coefficient analysis Table 4.10 above, the effect of each independent variable on
the dependent variable remains constant at (-0.103), while PU (0.177), PEOU (0.252), PC(0.355), and PR
(0.232) are statistically significant because the above four independent variables are less than alpha
value (p0.05). We can say that PT has an insignificant effect on the adoption telebirr service.

Thus, the regression equation model of adoption of telebirr mobile money service can be given as:

Y= β0 + β1X1 + β2X2 + β3X3 + β4X4

Where

Y= Adoption of telebirr (dependent variable)

X1= PU, X2= PEOU, X3= PC, X4= PR

Adoption of telebirr= -0.103+0.177(PU) +0.242(PEOU) +0.355(PC) +0.242(PR)

Summary based on analysis

The coefficient of perceived usefulness is β=0.177 with a P-value of p=0.030, the coefficient of perceived
ease of use is β=0.242 with a p-value of p=0.021, the coefficient of Perceived risk is β=0.242 with a p-
value of p=0.006 and the coefficient of Perceived cost is β=0.355 with a p-value of p=0.000

So it can be seen that maintaining other explanatory variables constant, this four factors PU, PEOU, PR
and PC was found to have a positive and statistically significant impact on the adoption of telebirr
mobile money service as its value of significance is less than 0.05. Therefore, this hypothesizes are
accepted. Where as

The coefficient of Perceived trust is a beta coefficient of β=0.083 with a p value of p=0.369, which is not
significant at the 0.05 significance level because the p-value is greater than 0.05.Hence PT has no
significant effect on the adoption of telebirr mobile money services. Therefore, based on the result of
the regression analysis, this hypothesis was not supported.

Conclusion

According to the study Perceived ease of use, perceived usefulness, perceived awareness,
perceived risk, perceived cost and perceived trust
Limitation and Suggestions for further research
there may be additional factors that can affect the adoption of mobile money payment system that
could be selected as further factors. Future studies may investigate on more factors which affect the
adaption of mobile money payment system in telebirr.

Further, it is very important to analyze more users with big sample size.

Title: Factors Influencing the Adoption of Tele Birr Services in EthiopiaToday, let's explore the key
factors influencing the adoption of Tele Birr services in Ethiopia and their impact onfinancial inclusion
and digital payment adoption.

@1. Infrastructure: The availability and quality of telecommunication infrastructure, including

network coverage andinternet access, play a vital role in the successful adoption of Tele Birr. Regions
with robust infrastructure tend toexperience higher adoption rates.

2. Technological Literacy: The level of technological literacy among the population greatly influences
Tele Birradoption. Familiarity with mobile banking services and the ability to navigate digital platforms
are prerequisites foradoption. Educational initiatives and user-friendly interfaces can bridge the digital
divide.

3. Financial Inclusion: The extent of financial inclusion within a population significantly impacts Tele Birr
adoption.Individuals who already have access to formal financial services may be more inclined to adopt
digital paymentsystems like Tele Birr. However, efforts to increase financial inclusion can drive adoption
among previously unbankedindividuals.

4. Trust and Security: Building trust and ensuring security are paramount for digital financial
transactions. Robustsecurity measures, such as encryption and two-factor authentication, foster user
confidence and drive adoption.

5. Affordability and Accessibility: Affordability and accessibility are critical factors affecting adoption
rates. Ensuringcompetitive transaction fees, widespread agent networks, and ease of cash-to-digital
conversions can enhanceaccessibility and promote adoption.

6. Regulatory Environment: The regulatory environment surrounding mobile banking and digital
payment servicesplays a pivotal role. Favorable policies and supportive regulations create an enabling
ecosystem, fostering innovationand driving adoption.

7. Cultural and Social Acceptance: Cultural and social acceptance significantly influences adoption rates.
Societalattitudes and norms towards new technologies, including digital payments, impact the
willingness to adopt. Raisingawareness and addressing cultural perceptions can drive increased
acceptance.

8. Customer Support and Education: Providing accessible customer support, user-friendly guides,
and educationalprograms is crucial. Empowering users with knowledge, addressing concerns, and
offering seamless supportenhances their experience and boosts adoption.Understanding these factors is
essential for unlocking the full potential of Tele Birr and driving financial inclusion inEthiopia. Let's work
together to create an ecosystem that fosters adoption and empowers individuals and businessesalike