Cashless Payments: Perceived Challenges by Stakeholders in Tanzania Using UTAUT2 Model.

Keywords: Cashless Payments, UTAUT2 Model, Perceived Challenges


The establishment of cashless payments has revolutionized financial transactions globally, yet its implementation in developing countries like Tanzania presents a unique series of challenges. This study investigates the challenges associated with cashless payments in Tanzania using UTAUT2 model. The UTAUT2 model determine behavior intention by individual technology consumers. The study employed quantitative research method for data collection by distributing questionnaires. Data analysis was performed using SPSS analytical tool. Findings revealed the most used cashless methods were mobile money 59%, Scan to Pay (QR Codes) 51% and Mobile banking 43%. Majority of respondents were found to use cashless payment service to pay bills 87%, sending and receiving money 85% and purchasing airtime 79%. Findings also shows UTAUT2 factors that affect the adoption of cashless payment is highly influenced by perceived price value of the service (heavy tax and levy 65%, high transaction costs 50%), facilitation condition (low support by merchants 51%, IT related Risks 42% and Delayed transaction completeness 41%), social influence (social altitude 38%) and hedonic motivation (risk of fraud 38%). This research contributes to the existing literature by offering insights into the current challenges impacting cashless payments in Tanzania.


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