The influence of trust and risk in behavioral intention to adopt mobile financial services among the poor

Abstract EN

Risk and trust are very critical in dealing with the poor.

Avoiding as well as managing risk is a precondition for them to move out of poverty.

This paper studies the relationship between trust and risk in mobile money technology adoption by the poor.

Mobile money, sometimes called mobile financial services is one of the categories of Information Technologies that promises to substantially transform the lives of the poor through financial inclusion.

The study used quantitative data from three mobile money services in Kenya, M-PESA, Airtel Money and Orange Money, to provide empirical evidence.

Quantitative data was collected through a questionnaire using a five point likert scale from 283 respondents from seven poor divisions in Nairobi.

We used Structural Equation Modelling (SEM) using AMOS 16 to validate the research model.

SEM uses Confirmatory Factor Analysis (CFA) to align the tested measures to the specific constructs by measuring the extent to which each construct contributes to the overall model.

CFA also tests the separation between constructs by evaluating the fit in the overall model.

The study established that trust and risk were significant determinants of adoption of mobile money transfer in Kenya.

It also established that risk moderates trust in mobile money adoption among this population.

We recommend that mobile money providers invest in building trust among the users keeping in mind that demonstrating reduced risk will enhance the positive effect of trust on the intention to adopt mobile money.

The paper makes a contribution to the understanding of factors to be studied particularly in the evaluation of e-commerce and e-business