ICT and financial inclusion: Adoption of mobile phone banking among small business owners in Iringa, Tanzania

This study examined the extent of the adoption of mobile phone banking facility among small business owners at Iringa in Tanzania. A sample of 87 respondents was used. The study found that the adoption of mobile phone banking among the surveyed small business owners at Iringa was high. Majority of small business owners subscribed to the service primarily for sending and/or receiving money. Only a small proportion of respondents deposited their savings to the mobile phone banking facility. Also, it was noted that some commercial banks had a facility that allowed the transfer of money from ones´ account to his/her mobile phone and vice versa, making the issue of where the money is initially deposited irrelevant. Reasons such as accessibility and convenience were found to be the most important in attracting small business owners to adopt the new technology. Generally, small business owners were positive towards the new technology indicating that it was complementing rather than competing with traditional banks. Recommendations for policy and further studies are provided.