KWAME NKRUMAH UNIVERSITY OFSCIENCE AND TECHNOLOGY COLLEGE OF HUMANITIES AND SOCIAL SCIENCES DEPART MENT OF ECONOMICS STEPHEN FRIMPONG

KWAME NKRUMAH UNIVERSITY OFSCIENCE AND TECHNOLOGY
COLLEGE OF HUMANITIES AND SOCIAL SCIENCES
DEPART MENT OF ECONOMICS
STEPHEN FRIMPONG
(PG9715617)
MSC ECONOMICS
EXAMINING THE FACTORS INFLUENCING THE ADOPTION OF MOBILE MONEY SERVICES AMONG THE RURAL UNBANKED IN TECHIMAN NORTH DISTRICT
27908253600450JUNE 2018
Background to the Study
Economically, a well-developed payment system in a country ensures the safety, stabilisation and well-functioning financial system. Proper and effective payment system create an avenue for quick and timely accomplishment of financial dealings which help improve on production leading to job creation and hence, economic growth. Good payment system has the potential of helping in the overall improvement of the micro and the macro sectors of an economy.
In Ghana, the basic payment systems take the form of institutional arrangements and procedures that enhance movement of financial claims between and among two parties in financial transactions. These institutional procedures and processes are in the form such as Real Time Gross Settlements (RTGS), E-zwich, Mobile Money, Visa, Master card, and GH-Link (BOG, 2017).

The last few years has witness a prevalent use of mobile phones in Ghana, as mobile phone has been converted from being an extravagance that was limited to the very few individuals to a wide number of people in the country patronising its usage which is positively affecting lives. It is believed that the number of mobile phones in the country are fall more than the entire population. It is now easy to have access to mobile phones than before and this is made possible due to the interaction among the regulatory authorities’ intervention, strong competition existing between the telecommunication firms and the amount of investments being made on daily basis to strengthen the sector by the industry actors. Mobile phone is now an essential substance for growth and development especially in developing countries like that of Ghana. While mobile phone has not only made it easy for people to connect with one another and entertain themselves, it has also made it possible to transact finances within a shortest possible of time, and that is the mobile money services. The mobile money services has led to the reduction of the amount of cash in the society thereby gradually helping to achieve the cashless society so desired by the financial regulators in the country.
Mobile Money Transfer has seen a transmute outcome to the live of the rural unbanked, who are normally ignored by the traditional commercial banks in the country. Mobile money is an electronic cash transaction. Is available in most countries in the world especially in Africa. The mobile money service gives way to users to store money on their mobile phones, transfer and receive money to and from users who are connected to the mobile money platforms. The mobile money service also makes it possible for users to make payments online, or in a physical market transactions and makes it easy for users of the service to connect their bank accounts to the mobile money service to enjoy banking on real time basis.
In Ghana, the mobile telecommunication networks are the operators of the mobile money service. The operators creates an accounts through the Subscriber Identification Module (SIM) of which the SIM number serves as the account number of the mobile money user. These services are normally classified as the electronic commence or trading. This makes mobile money service an alternative to the traditional banking system especially to the rural unbanked who are always neglected by the traditional banks. Simply, the mobile money service is now a digital alternative to cash. Prospects are certainly great that mobile money service will built-up the financial sector to millions of unbanked Ghanaians, predominantly in the rural areas where people lack the basic access to the traditional financial services. But by the use of mobile phones, certain variety of vital financial service could be enjoyed which hither to, were limited to certain group of people. Mobile money service delivers the potential of cumulative worth of payments system and increasing access to formal financial services at a relatively lower cost to those who currently have no access to it.
GSMA’s Mobile Economy (2013) report shows over 2.5 billion of the world working population have zero contact to basic financial services such as savings, fund transfers and the borrowing. The rural unbanked population of Ghana has the great chance of being on the mobile money platform due to the ever increasing access to mobile phone services in the country. According to the Bank of Ghana (2018), the mobilized fund outside the banking system and through the use of mobile money services reached a record GH¢2.3 billion ending December 2017. This figure represents a progression of 84.6 percent over the December 2016 amount of GH¢1.3 billion. The fund mobilized are normally held by the mobile money partner banks in the country. The statistics also indicates that mobile money accounts holders are 23.95 million relative to 11.43 million bank accountholders as at end December 2017. This may be as a result of one person having more than one accounts with different telecommunication companies. The total worth of mobile money transactions also increased from GH¢78.5 billion in December 2016 to GH¢155.8 billion at end December 2017 showing a growth of 98.5 percent. The mobile money service is therefore an avenue of bringing those with limited access to the traditional banking sector, those who are predominately in the rural areas on board the formal financial sector to have the benefits of the services such as money transfers, savings, loaning and paying bills at relatively cheaper cost.
This study therefore seeks to examine the factors influencing the adoption of mobile money services among the rural unbanked in Techiman North District.

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Problem Statement
The GSMA 2014 report indicates that there were 255 mobile money service companies worldwide and Ghana is one of such countries with four telecommunication companies providing mobile money services, with mobile phone infiltration attaining a level in surplus of 115%. The sustainable Development Goals (SGDs) clearly features general financial inclusion realisation for all countries and the use of mobile money service is an appropriate machinery that has the potential to be the main drive towards achieving financial inclusion in the world. Financial inclusion is about providing financial services at a relatively cheaper cost to those who are neglected by the formal banking services or those who earns little income. Making financial services accessible through the use of mobile phone technology is very essential for national development and growth. This is because of the large number of people in the country that have access to the mobile phones and embedding financial system with it goes a long way to ensuring the attainment of financial inclusion in the country.
The gap in usage of financial services among the rural dwellers in Ghana and that of the people living in the cities are so huge and the central bank of Ghana has undertaken several reforms to ensure financial inclusion for all citizens. Most of these reforms are more of legal than product to fulfil such desires of financial inclusion and little has been achieved from the reforms. The World Bank reported in 2012 that only 30% of Ghana’s population have access to bank accounts. This may be as a results of the lack of confidence in the traditional banking system coupled with the frequent collapse of microfinance firms in the country. Also, most of the banks in the country are situated in the urban areas living the rural dwellers with little to no access to formal banking services. As indicated by Gbombe and Tomoya, (2014) the relative concentration of banks in urban centres with limited rural penetration is one of the reasons why the rural folks have limited access to banking services. Techiman North District is characteristically rural in nature with no viable banking services even in the capital of the district, Tuobodum. The only financial service provider that cut across the district is the Brong Ahafo Catholic Society of Development (BACSOD) which is a microfinance institution in the district. This has led to an increase in the cost of financial transactions in the district with most of the inhabitants travelling to the Techiman Municipality to transact financial activities.

Mobile money service has now transformed the mode at which financial service is provided in Ghana. It has brought to bear a branchless delivery of financial services, hence, breaking the traditional hurdles to access financial services (Alexandre and Eisenhart, 2013). The mobile money service has transform the way people exchange money.
Several researches have been conducted on responses to challenges encountered in accessing the traditional banking services. This research has singled out the adoption of mobile money service as a viable panacea to these challenges.
Li, Liu and Ji, (2014) studied the factors influencing the adoption of mobile financial service in China. Their study concluded that perceived ease of use and perceived usefulness have insignificant influence on the adoption of mobile financial service.
Hamza and Shah, (2014) found out in their study that compatibility and social norm have significant influence on the adoption of mobile financial service in Nigeria.
Nyambura et al, (2013) studied on the factors influencing the usage of mobile phone technology in low income earners in Kenya. The study concluded that demographic factors (age, gender, marital status, education level and skills) have high influence on the usage of mobile technology.

However, studies like that of Li, Liu and Ji, (2014), Hamza and Shah, (2014) and Nyambura et al (2013) may not be relevant to Ghana context due to economic, social and cultural differences. In view of this some works have been done on MMS that emphasised on more general issues on the spread of the MMS that shape the business environment in Ghana.
Ackah (2016) studied on MMS and the growth of Medium small scale enterprises in Ghana using Tarkwa municipality as a case study. The study concluded that there is a significant influence of enterprise growth on mobile money adoption.
Baako, (2016) focused on the impact of mobile money in providing financial inclusion for the rural population in Kasena Nakana West District. The study showed that saving and payment have a positive effect on the acceptance of mobile money service.

The various studies undertaken in Ghana were based on identifying the importance of some factors on the adoption of the MMS and there is no existing research on the factors that influence the adoption of mobile money service among the rural unbanked in Ghana. This study aim at bringing that gap. The study will examine the various factors using the Technology Acceptance Model (TAM) and will also find out whether convenient savings, accessibility, social influence and transaction cost have influence on the adoption of mobile money services in the Techiman North District.
Objectives of the study
This research seeks to examine the factors influencing the adoption of mobile money service among the rural unbanked in Techiman North District. To achieve the general objective of the research, the specific objectives are:
To examine the influence of making convenient savings (CS) on the adoption of mobile money service among the rural unbanked population.

To determine the ease of accessibility (ACC) on the adoption of mobile money service among the rural unbanked population.

To assess how social influence (SI) affects the adoption of mobile money service among the rural unbanked population.

To determine the influence of transaction cost (TC) on the adoption of mobile money service among the rural unbanked population.

Research Hypothesis
H1 Convenient savings (CS) has a positive influence on the adoption of mobile money service.

H2. Easy accessibility (ACC) has a positive influence on the adoption of mobile money service
H3 Social influence (SI) has a positive influence on the adoption of mobile money service
H4 Transaction Cost (TC) has a negative influence on the adoption of mobile money service.

Significance of the study
Several technologies have been explored in the past and mobile phone innovations is one of them. Mobile money service is one of the technologies in the mobile phone applications and has penetrated in both personal and business domain. The impact of this technology has made it possible for people to have access to financial transactions irrespective of their locations so far as there is a mobile telecommunication network.

Though there are enough literature on the adoption of mobile money services, several of them emphasis on the urban areas with little consideration given to the underprivileged areas that are typically excluded from the traditional banking system. Also, there is nothing significant that has been done on the factors influencing the adoption of mobile money service in the country. This study therefore seeks to make meaningful contribution to the already existing literatures on mobile money adoption and how the mobile money service can help achieve financial inclusion for the unbanked population of the Techiman North District and in the country at large. The study will make contribution to awareness on how mobile money services can be planned to enhance its broader adoption especially in rural areas considered to have slow rate of adoption. With regards, the study will provide understanding on how the rural unbanked access financial services, how they patronise the services, and the benefits they gain from it by way of sending and receiving funds.

The aftermaths and results of this study may be of significant assessment to the financial industry and to other academicians who are interested in the field of finance to know how people react to innovative financial services like that of the mobile money. Based on the factors influencing the adoption of mobile money services, the research may offer recommendations for financial institutions who would be interested in sitting branches in the district.
The outcome will also assist policy makers, Central Bank, financial institutions and development agencies to ascertain areas of interest to provide appropriate support as well as recognising avenues of collaborations with mobile money service providers to make the required interventions geared towards achieving financial inclusion for the rural unbanked through the use of the mobile money services. The outcome of the research can be implemented by government and the various interested parties to assist them choose from the best options in adopting and refining the existing non-cash payment systems since a consistent and effective payment system is prudent in achieving a sustainable and reliable financial sector in the economy.

Scope of the study
The Techiman North District is among the twenty-seven district and municipalities in the Brong Ahafo region of Ghana. The district is made up of sixty-four towns and villages with only five major towns namely; Tuobodum, the capital of the district, Krobo, Offuman, Aworowa and Buoyem. The district covers an area of 389.4km2 and most of the settlements are located along the main roads that is Techiman-Wenchi and Techiman Kintampo routes. The Techiman North District is predominately an agrarian community with most of the inhabitants engaging in subsistence farming with pretty few in trading. The District capital, Tuobodum has two banks namely, the GN bank and Nkoranza-Kwabre Rural Bank whiles the rest of the major towns have been deprived of any major financial institutions and this has motivated the researcher to consider the District as the choice of the study. For appropriation, the research will cover mobile phone users who are registered users of the mobile money service who do not have access to any formal banking service in the district and has resorted to the mobile phones for help. Although they could be other variables affecting the adoption of mobile money service, the study will focus on four variables which are the convenience savings on the mobile money service, Social influence, easy accessibility and the cost of usage as these variables will determine the rate of adoption of the mobile money services is the district.
1.7 Delimitation
The study will look at the factors influencing the adoption of mobile money service among the rural unbanked in Techiman North District. The study will not focus on the adoption of mobile money service by businesses in the district.

1.8 Organisation of the study
The whole study will be categorized into five chapters.

Chapter one will consist of the following; background to the study, statement of the problem, objectives of the study, research questions, significance of the study, scope of the study, limitations of the study and organization of the study. Chapter two will include theoretical framework, Conceptual framework, definitions of concepts such as financial inclusion, the unbanked population, literature review of existing works carried out by other researchers and a summary of the chapter. Chapter three will focus on the research methodology which will look at the study population, sample size and sampling techniques, research design, research instruments, pre-testing of instruments, data collection methods and the estimation strategies. The fourth chapter will be based on the results and discussions of findings, while chapter five will provide summary of the study, conclusions and policy recommendations of the study.

CHAPTER TWO
LITERETURE REVIEW
2.0 Introduction
This chapter looks at the various studies that have been conducted on mobile money service and its adoption. The chapter is categorised under theoretical review, empirical review and the conceptual framework. The chapter also explains some basic terms used in the study, the Technological Acceptance Model (TAM) is fully discussed in relation to the relevance of the study.

2.1 Basic definition of terms
2.1.1 Mobile Money Service
This is the application of mobile phone device to undertake financial transactions electronically. It is common in many countries and allow users to save, send, and receive money to and from relatives and also make payments of goods and services (World Bank, 2018). This services delivered through the mobile money application is now a viable alternative to those who do have access to formal banking service.

According to Cheney, (2008) mobile money service is the term use to explain array of financial services conducted using mobile phone gadgets. Mobile money typically offers four basic service according to Davidson ; Penicaud (2011) are referred to as functional transactions. These services are sending of fund, payment of bills, receiving of funds and the buying of airtime. The rural unbanked population now uses mobile money service to engage a more general financial activities that would not have been possible without the use of the mobile phone technology. In Ghana, there are three Mobile Network Operators (MNO) providing the mobile money services and these are Airtel/tigo, MTN, and Vodafone. MTN Ghana controls the largest share in the mobile money market with MTN came on top as having the largest share of deposits, accounting for more than 90 percent of mobile money accounts held at commercial banks. MTN as at October 2017 had GH¢2.1 billion representing 93.5 percent of deposits held at commercial banks. Airtel/Tigo followed with GH¢79 million accounting for 3.56 percent share of the deposits. Vodafone had 2.52 percent of the market share with GH¢57 million deposits (BoG, 2018).

It is imperative therefore to define mobile money service as the use of mobile phone technology for the movement of funds from one mobile wallet to another. Thus, it is a platform that allows mobile phone users to transfer money electronically from one person to another using mobile phone gadgets.

2.1.2 Mobile Money and Electronic Money
Mobile money is quite different from electronic money (E-Money). Electronic money is the elaborate form of money which are stored on credit cards, debit cards, ATMs, E-Zwichs together with those funds on the mobile money wallets. Mobile money is therefore an aspect of electronic money which refers to the use of mobile phone integrated technologies to carry out financial transactions. The mobile money is not actually tangled with bank accounts of individual but through the MNO who creates an account using the Subscriber Identification Module (SIM). Mobile phones are now common and the prevalent use of it has led to increasing number of people hooking unto the mobile money platform, especially the rural low income earners who are neglected by the traditional banking services.

According to GSMA report, (2017) the percentage of adult population with mobile money accounts has moved from 13% to 39% within a period of four years. Mobile money is gradually taking overtaking the access to formal banking services since only 34% of Ghanaians have bank accounts yet 39% of the population have mobile money accounts. To close the rural- urban divide on access to financial services, mobile money is then the needed platform to reach out to the rural unbanked with financial access.

2.1.3 Mobile Money Interoperability (MMI)
Like the formal banking transfer system, the MMI enables users on the mobile money platforms from different MNO to transfer and receive funds directly from one another at ease. The MMI is a cross network transaction that lowers the cost of transaction and also drives the prospects of attaining financial inclusion (Fintech, 2018). With this service, users of mobile money can simply transfer funds from their mobile money wallet to those on mobile money platform with different Mobile Money Operators (MMOs). Mobile money users with bank accounts can also transfer funds from their mobile money wallet to their bank accounts (W2A) and can as well transfer funds from their bank accounts unto their mobile money wallet (A2W). The MMI was launched in Ghana on the 9th of May 2018 following that of Tanzania and Kenya. The novelty of this service is aimed at enhancing the payment system in Ghana thereby helping to achieving financial inclusion through the use of the mobile money service. With this, the rural unbanked population will have an alternative in mobile money service to the formal banking service which is not available to them.

2.1.4 Mobile Money and Financial Inclusion
Globally, it is believed that almost 2 billion people lack access to formal banking services. And this is not different in Ghana and the rest of the sub-Saharan Africa. The advent of mobile technology has made it possible for most countries in Africa to have access to financial services at ease and at lower cost through the mobile money services. The mobile money is now seen as a driving force to achieving financial inclusion. The GSMA report (2016) indicated that the working population in Kenya and Tanzania have mobile money accounts more than that of bank accounts. Ghana is gradually following that pace with most of the rural population registered to the mobile money platform than that of bank accounts.
According to the report by Global Financial Development (GFD, 2014) financial inclusion is the proportion of people and firms that have access to formal financial service. The ability of the individual to have suitable access to financial service is paramount, and without this the person is referred to as financially excluded. Financial exclusion in Ghana is very high especially in the rural areas where there are limited number of financial institutions and people living in these rural areas are normally low income earners who are neglected by the formal financial institutions. The access to formal financial services has a role in enhancing wealth, promoting growth and achieving sustainable development. Also, access to financial service is a vital factor in enhancing the living standard of the rural people and this translates to the growth of the economy since in most cases the development of an economy is dependent on the rural market which normally has the greater proportion of the population.

Ahiabenu (2010), put it that the use of mobile money service is taking place in isolation but in parallel with the advent and expansion of other financial electronic payments services. This expansion has positive influence on the number of people who can access the basic financial services in the country. Ahiebenu further explained that mobile money provide a safe and secure way for one to transact business in more friendly and cost effective manner. With mobile money, people no longer travel to far distance to have access to financial products.

Data from the Central Bank of Ghana indicates that there has been an exponential growth with the adoption and use of the mobile money service since its inception in 2012. This growth does not only reflect on the registered users on the mobile money platform, but on the volume and the value of transaction carried out within the period of five years. This means that the mobile money service has the potential of expanding the economy to a greater height when proper attention is given to it since the mobilised funds are kept by the commercial banks who are partners to the mobile money services.
Table 2.1 Bank of Ghana Mobile Money statistic 2018
Indicators 2012 2013 2014 2015 2016 2017 Jan-Mar
2018 2018 % Growth
Total number of mobile voice subscription (Cumulative) 25,618,427 28,026,482 30,360,771 35,008,387 38,305,078 37,445,048 37,445,048* 4.65
Registered mobile money accounts (Cumulative) 3,778,374 4,393,721 7,167,542 13,120,367 19,735,098 23,947,437 25,306,085 23.44
Active mobile money accounts 345,434 991,780 2,526,588 4,868,569 8,313,283 11,119,376 11,248,758 21.45
Registered Agents (Cumulative) 8,660 17,492 26,889 79,747 136,769 194,688 217,974 51.99
Active Agents 5,900 10,404 20,722 56,270 107,415 151,745 161,317 38.31
Total volume of transactions 18,042,241 40,853,559 113,179,738 266,246,537 550,218,427 981,564,563 312,926,881 57.86
Total value of transactions (GH¢’million) 594.12 2,652.47 12,123.89 35,444.38 78,508.90 155,844.84 52,352.80 68.68
Balance on Float (GH¢’million) 19.59 62.82 223.33 547.96 1,257.40 2,321.07 2,221.91 49.39
Source: www.bog.gov
Even though the mobile money service has achieve its feet in Ghana, the adoption still remains slow especially in the rural areas and this may partly be as a results lack of information, poor network quality, cost of the services, technicalities is usage, accessibility, peer influence and cultural phenomenon. According to the World Bank, (2015) the rural population in Ghana as at 2014 stood at 12,484,698 and only 40% of this have access to the mobile money accounts compare to 60% adoption by those living in the cities. This requires further attention to be given to those dwelling in the rural areas to help drive to the mainstream financial services and mobile money can is the catalyst in achieving that.

2.2 Adoption theories
This study employed the Technology Acceptance Model (TAM) by Davis (1989) and Unified Theory of use and acceptance of technology (UTAUT) (Venkatesh ; Davis, 2000) in determining the factors influencing the adoption of mobile money service.
2.2.1 Technology Acceptance Model (TAM)
The mobile money service is a technology procedure and medium through which people make transactions. Studies show that the acceptance of the mobile money service depends on how well people can use the mobile money procedures. People adopt the mobile money service base on the benefits they assume to get for hocking up on the platform. This research is based on the factors influencing the adoption of mobile money service and uses the Technology Acceptance Model (TAM). TAM is a hypothetical model that explains how users come to accept and use a technology, Davis (1989). The model suggest that when an individual is presented with a new technology, several factors determines the decision whether to accept and use this new technology or refute it. The TAM is recognised on the grounds that the construct, perceived usefulness and perceived ease of use are central variables that defines system adoption and use (Davis, 1989). These two variables build a positive outlook or target toward using an IT system. Consequently, the TAM has been selected as the most suitable model for the study and has therefore been modified to include other variables such as payment, transaction cost, and peer influence on mobile money adoption as indicated in figure 2.2.

Figure 2.1: The Technology Acceptance Model (TAM)
952505715Perceived Ease of Use (PEU)
External
Variables
Perceived Ease of Use (PEU)
External
Variables

124777510795Actual system Usage
Actual system Usage

20097756350Perceived Usefulness (PU)
Behavioural Intention of Use
Perceived Usefulness (PU)
Behavioural Intention of Use

Source: Davis et al (1989)
2.2.1.1 Perceived Ease of Use
Davis (1989) defined perceived ease of use a degree to which a person believes that using a particular system will be free of effort (Davis, 1989). It has a positive influence on the adoption of mobile money service in the sense that when people believe that the use of a new technology is stress-free, it informed their decision as to accepting it use. The perceived ease of use will lead to developing an attitude of usage and the intention of adoption which leads to the actual usage. In MMS, the perceived ease of use relates to the system registration, steps in making payments, and technicalities in usage. Perceived ease of use is influenced by the other variable in the model, the perceived usefulness.
2.2.1.2 Perceived Usefulness
Perceived usefulness has an effect on the demand for mobile money services. It is essential for financial service to be convenient and this influence the people perception on the benefits of the mobile money services. As explained by Davis (1989) the level at which an individual assume the usefulness of an application will help achieve certain level of patronage. This can be measured through the number of people using the service and the benefits they gain from relying on it. Convenient, secured and safe MMS is desirable for users. MMS provides users with accessible and portable financial services which makes financial transactions look simple.
2.2.2 Unified Theory of Use and Acceptance of Technology
Unified Theory of use and acceptance of technology (UTAUT), is a TAM based model formulated by Venkatesh and Davis (2000) in users’ acceptance of information technology. The theory explains that customers’ acceptance of new technology is influenced largely by four constructs which are performance expectancy, effort expectancy, social influence and facilitating condition.
Lee, (2010) explained three of the constructs in his work, that, performance expectation is the extent to which adopters of a system believe the system will help improve their work performance. Like the ease of use in the original TAM by Davis, (1989), the acceptance of a new technology should make work easier and improve upon performance in a substantial manner. Effort expectancy is more related to performance as it measures the degree of ease associated with the use of the system, and social influence measures the degree individual perceives that others expect him or her to adopt the new system to ease his or her job performance.
2.3 Empirical studies on TAM and Mobile Money Service
This section looks at previous work done on factors influencing the adoption of MMS. Zikmund et al (2010) explained that empirical literature review is a focused exploration of available work that has been done on the subject of study. It is a broad survey of previous studies related to the research questions.
TAM is a well-tested and certified and it is generally recognised model with the ability to be modified to include other variables or constructs (Venkatesh and Davis 2000; Omwansa et al 2012; Masinge, 2010). The model is generally accepted because of its briefness and succinctness (Alroaia et al, 2011).

Yu (2012) used extended TAM and UTAUT in his research on factors influencing the adoption of mobile money service. He added to the model perceived credibility, and perceived transaction cost to determine the factors influencing the behavioural intension of using the mobile money service as well the conditions that facilitate the use of the service. The study concluded that age and gender are controlling variables. The study concluded that intention to use mobile money was significantly influenced by social influence, perceived financial cost, performance expectancy, and perceived credibility.
Dass and Pal (2011) used the TAM in explaining factors influencing the acceptance of mobile money service as alternative to banking in India. The study used seven constructs which were Demand for banking and financial services, Hardships faced in existing channels of banking, Perceived usefulness of MFS, Trust, Technology readiness, Ease of Use and Perceived financial cost. The study identified lack of trust, financial cost, and technology to be the barriers to mobile financial adoption in rural unbanked population in India.

Chitungo and Munongo (2013) extended the original TAM to include other variables in studying the use of mobile money service as the alternative to the unbanked in Zimbabwe. The study established that relative advantage, innovativeness and social norms have positive influence of peoples’ decision to accept the mobile money service as means of banking. Perceived risk and the cost of using the mobile money service was seen as having a negative influence on the adoption of mobile money service. This means that users are deterred from using the mobile money service due to higher transaction cost and the fear of losing their money.

Wessels and Drennan (2010) also discussed about cost effect as the factor that determine the
acceptance and hence adoption of mobile banking in Australia using the TAM. Their study concluded that the cost of using the mobile money service has a significant negative influence on the adoption of the service. The cost of transaction seem to be higher by users who prefer using the formal banking system than clinging on the mobile money service.

Sayid, Echchabi, and Aziz (2012) studied on mobile financial service adoption in Somalia using the TAM. The model used the original variables of perceived ease of use and perceived usefulness including security, perceived risk and social influence. The study found perceived usefulness and social influence to be the only significant factors influencing the adoption of mobile financial services. Perceived ease of use, security and perceived risk were not significant in the adoption of mobile financial services. The finding on the perceived ease of use is inconsistent with many studies conducted on the basis of TAM which have shown a significant influence on adoption (Dass & Pal, 2011).

Omwansa, Waema, and Lules, (2012) in their studied in Kenya the adoption of M-Shwari (Mobile banking service) using the extended TAM. They claimed that the original TAM variables are not enough for studying the acceptance of mobile banking service as the two constructs used in the original TAM were mainly for the field of information systems. They revealed that the model was purposely for organisational context and not appropriate for everyday phenomenon like the mobile banking service. Because of the identified limitation in the original TAM based model, they included other factors in determining the adoption of the mobile banking service in the model. The extended model has in it perceived self-efficacy, credibility, normative measures and perceived cost of transaction. The study found all the constructs in the model to be significant in influencing the adoption of mobile banking service in Kenya.

Mpiani (2016) and Baako (2016) used the original TAM Model to study the impact of mobile money on savings and payment in Ghana. The constructs of their studies were payment, savings, and ability to make transfers on the mobile money service. Their studies concluded that mobile money has a positive impact on the payment and savings intentions of users.
Tobbin and Kuwornu, (2011) studied the factors influence the adoption of mobile money service in Ghana. The variables used in the study were relative advantage, perceived ease of use, perceived usefulness, trialability, risk of using the service and the trust users have for the service. All the factors used in the study had a significant influence on mobile money adoption except risk of usage which was not significant.

2.3.1 Conceptual Framework
From the reviewed literatures and for the purpose of this study, the conceptual framework consist of the factors influencing the adoption of mobile money service base on the TAM and UTAUT methodologies with little modification which includes payments, transaction cost and peer influence together with the traditional variable perceived ease of use as independent variables and adoption of mobile money service as dependent variable.

2857575565Perceived
Usefulness (PU)
Accessibility
(ACC)
Transaction Cost
(TC)
Perceived
Ease of Use (EU)
Social Influence
(SI)
Adoption of the Mobile Money Service
Convenient Savings
(CS)
Perceived
Usefulness (PU)
Accessibility
(ACC)
Transaction Cost
(TC)
Perceived
Ease of Use (EU)
Social Influence
(SI)
Adoption of the Mobile Money Service
Convenient Savings
(CS)

Figure 2.2: Conceptual framework base on TAM
Source: Davis et al., (1986) modified to suit the research objectives
The framework shows that users’ adoption of mobile money service is jointly influenced by perceived usefulness (PU) and the perceived eased of use (EU). Perceived usefulness (dependent variable) is influenced by four (4) constructs (independent variables) of the study which are the convenient savings (CS), accessibility (ACC), social influence (SI) and transaction cost (TC).
Venkatesh and Davis (2000) recommended the addition of other variables in the TAM based model to assess their impact on a principal theories being determined. The proposed model integrate the original TAM and UTAUT variables, which are the perceived usefulness (PU) and the perceived ease of use (EU) with external variables CS, ACC, SI and TC. The study therefore theorised that the four constructs have influence on the perceived usefulness which from the original TAM based model by Davis (1989), together with the perceived ease of use, are the factors influencing the adoption and usage of technology, hence for the purpose of this study, perceived usefulness has a direct positive influence on the adoption of mobile money service.
Convenient savings
John Keynes (1963) explains savings to be the excess of income over consumption. Keynes explained further that savings is that part of income that is left unspent for some period of time. Regular savings has the potential of improving the future lives of people through capital formation for business set up, expansion and securing the future. Limited availability of financial institutions in the rural areas makes informal savings to be difficult.
One of the usefulness of the mobile money service is the ability to use the mobile phone device to save money for the desire period and cashing out the saved money when needed. This reduces the fear of losing money while holding it in cash since there is no financial institution available to keep custodian of the money. This also creates a firewall against thievery at the same time earning little interest on the savings on the mobile money wallet. Having the opportunity to save easily without going through some difficulties increases the potential for people adopting the mobile money service. If the people have good means of savings such as that of the mobile money, which is reliable and accessible, safe and inexpensive, then they will be able to manage their finances better to cater for unforeseen circumstances that may rise in the future. (Karlan and Morduch, 2009). As stated by Mpiani (2016), most mobile money users now prefer depositing their money on the mobile money wallet than depositing it into the traditional bank accounts. Baako, (2016) studied the impact of savings and payments on mobile money adoption in the Kasena Nakana West District in the Upper East region. The study concluded that there is a significant positive relationship between savings and mobile money adoption and that mobile money usage increases the habit of savings among the rural poor population. Morawczynski, (2009), stated that mobile money has made it possible for women to save without the knowledge of their husband. This means that the act of saving on mobile money is also confidential as the individual who saves on the platform is the only person privy to the amount in his or her mobile money accounts. This study therefore hypothesised that convenient savings has a positive influence on the adoption of mobile money service.
Accessibility
People adopting a particular product depends on the accessibility of the product, convenience in using it and the reliability it is to the user. Data from bank of Ghana (2018) indicates a 23.44% increase in the number of people on the mobile money platform from December 2017 to March 2018. This improvement in the adoption of the mobile money service is partly due to the improvement in service quality provided by the telecommunication companies, prevalent increase in mobile phone usage, protective regulation framework, competition and improvement in mobile money education. Ability to deposit and withdraw money at ease and the availability of mobile money agents at each corner of communities make it convenient for one to use the service without putting in much effort.
The study then hypothesised that accessibility has a positive influence on the adoption of mobile money service.

Social influence
Social influence is the apparent change in behaviour, thoughts, and actions and desires that one person cause in another either deliberately or inadvertently as a results of the benefits the influencer perceived to have achieved being in that position or using a particular system. Social influence, the degree to which an individual perceives that important others believe that he or she should use the new system Venkatesh (2003).
Venkatesh and Davis, (2000) claimed that people accepts new technology because other people who are familiar uses that technology and may have recommended it. In their model (UTAUT) they explained that social influence affects the adoption because people need to connect to one another by using similar technologies. Yu, (2012) using the Unified Theory of Acceptance and use of Technology (UTAUT) concluded that social influence has a positive significant influence on the adoption of mobile financial service in Taiwan. Sayid, Echchabi, and Aziz (2012) in Somalia concluded that social influence was the main factor influencing the adoption of mobile financial service among the four variables used in the study. Dass et al, (2011) did a combined analysis of factor affecting mobile financial service adoption established that social influence is a key factor influencing the adoption of mobile financial service. Social influence is identified to be one of the most important factors influencing peoples’ decision in accepting mobile money service. (Mbele-Sibotshiwe, 2013). The study therefore hypothesised that social influence has a positive effect on the adoption of mobile money service.

Transaction cost
The transaction cost of using mobile money service has direct influence on the adoption of the service. Higher transaction cost normally deter people from using a service and lower transaction cost serves as incentives to user. Chitungo and Munongo, (2013) explained transaction cost to be the level at which a person believe that using mobile money service will cost money. People adopting mobile money service does so base on it cost effectiveness comparing to other alternatives especially the rural dwellers who are mostly poor. The transaction cost of using the mobile money technology are relatively less expensive compare to the formal banking service Omwansa (2009). Lule (2008) put it that the cost benefit pattern has a significant influence on both the perceived usefulness and the perceived ease of use of mobile money service. Also Micheni, Lule, and Muke, (2013) posit that if users believe that the cost of using the service is low, they will accept it easier and use it. Masinge, (2010) postulated that low income earners normally have little to spend and are price sensitive and any increase in cost of using the mobile money service will be disincentive to them. The study therefore hypothesised that transaction cost has negative influence on the adoption of mobile money service.
2.4 Research Gap
Evidence from the literature review shows that the Perceived usefulness and the perceived ease of use are not sufficient; they may not properly describe it influence on people adoption of the mobile money service in every context especially in rural areas. This makes it necessary to add other factors that can give further explanations to the adoption of the MMS by prospective users.
The various literature reviewed showed various gaps this research seeks to fill. This study will use descriptive and regression analysis which is quite unusual in the literatures reviewed. Most of the researches on the MMS were carried out in Kenya and Tanzania, with very few conducted in Ghana on research areas such as electronic banking, MMS on payment system and the importance of the MMS. There is no existing research on factors influencing the adoption of MMS among the rural unbanked in Ghana. To the best of the researcher’s idea, there is no previous study that has jointly included accessibility (ACC), convenient savings (CS), social influence (SI) and transaction cost (TC) in a single TAM and UTAUT based models even though these variables are as well important in determining the factors influencing the adoption of MMS. The contribution of this literature is therefore to fill the identified gap in the area of MMS.

CHAPTER THREE
METHODOLOGY
3.1 Introduction
The outline of the methods used in answering the research questions are explained under this chapter. The chapter covers the research design, population, sample size, data collection techniques and data analysis procedures.
3.2 Research design
The research employed survey using clusters in selected locations in the Techiman North District for data collection. It is prudent to use the survey method in this type of research as it gives quantitative description of measures and actions such as opinions, attitudes and experiences of the population being studied (Veihland and Leong, 2007). Creswell, (2009) explained that quantitative research is a standard for testing objective concepts by studying the relationships that exist in variables. This research therefore employs the quantitative research methodology in collecting and analysing data. The quantitative methods was used to offer statistical measurement and analysis of the constructs used in the study.

3.3 Study Area
The study was conducted in 8 communities in the Techiman North district in the Brong Ahafo Region. The communities are Asueyi, Mesedan, Buoyem, Krobo, Akrofrom, Aworowa, Ayesu and Kokroko. The study chose the area because access to formal banking system is limited coupled with the fact that traders in the district travels to the Techiman market during the market days with cash on them which make them prone to armed robbery attacks. Because of the absence of formal banking services in the selected area, the researcher believe that the area can represent the unbanked population.
3.4 Study Population
The study was solely base on users of mobile money service in the selected communities in the Techiman North District. Zikmund and Babin (2010) stated that population is any group of people who share similar characteristics and living in a particular geographical location.

3.5 Unit of Analysis
The unit of analysis of the study were the users of mobile money service provided by the telecommunication companies in Ghana. The telecommunication companies that provide the mobile money service in Ghana are the MTN, Vodafone GH, and Airteltigo.

3.6 Data collection
3.6.1 Type and Sources of data
The study was based on primary data which were taken from the field. Kothari (2014) explained that primary data are those taken directly from the field for the first time which are in original form. The questionnaires were admitted at the premises of some identified mobile money vendors in the selected communities in the district where the research is being conducted.

3.6.2 Data collection methods
Survey questionnaire was used in collecting data from the respondents in different locations of the district for the study. It is easy to draw inferences from survey questionnaires. Creswell (2009) explained that survey questionnaire techniques offers a measurable or numeric explanations of trends, events and opinions of population by reviewing a section of that population.
Self-administered questionnaire were administered on respondents to give their opinions on the subject under study. The researcher was present to provide clarifications when there was a need for it. Some of the questionnaires were administered face to face to those who could not read. This brought more clarity to respondents to help comprehend their understanding on what they were up to.
The questionnaire was divided into three parts. Part A collected data on the respondents’ demographics which included age, gender, education and occupation. Part B was on what the people or respondents used the mobile money service for while the final part, Part C was on five points likert scale used to measure the variables of study. Winter and Dodou (2010) stated that likert scale is more for survey study. This research is a survey and likert scale is appropriate adoption. The study had four variables to measure to determine their influence on the adoption of the mobile money service. This variables are transaction cost (TC), social influence (SI), easy accessibility (EA) and satisfaction (S). Respondents opinions were sought using a five point likert scale ranging from; 1= Strongly Disagree, 2= Disagree, 3= Neither disagree or agree, 4 = Agree and 5= Strongly agree.
3.7 Sampling techniques and sampling size
The study adopted the non-probability sampling technique in chosen the respondents from the population. Using the probability sampling technique in selecting respondents is centring on personal judgement or convenience and the chance of a particular respondents being selected is unknown (Zikmund et al, 2010). Convenience and purposive sampling were adopted so that users of mobile money service can be selected. Convenience sampling means respondents that are readily available to provide the data needed for the study (Bernard, 2006). Convenience sampling method is suitable technique used to gather large number of data quickly and economically given the available time and resources. Bernard (2006) further explained that purposive sampling help the researcher to decide the purpose the respondents are to serve and questionnaires are design to suit such purposes.
The study employed 240 respondents drawn from the study area who answered the questionnaires presented to them. At least a sample of 20 respondents were selected from each of the selected communities in the district. The sample size was arrived at base on resources availability, time factor and the desire precision of the study. Hill et al (2003) give clearance to this that a sample size of 100 and above is sufficient to represent population under study. The sample size of 240 is therefore appropriate for this study. The table below indicates the number of respondents selected from each of the 8 communities in the district.

Table 3.1 Selected respondents
Community Number
of respondents
Asueyi28
Mesedan30
Buoyem32
Krobo36
Akrofrom32
Aworowa42
Ayesu20
Kokroko20
Total 240
Source: field survey, 2018
3.8 Reliability and validity of the measurement instruments
The questionnaire was pre-tested to ensure its validity and reliability. 16 respondents, 2 from each of the selected communities were administered with the questionnaire to determine if it is consistent in achieving the research objectives. Changes were made to areas where the researcher considered to be unclear. This was done to ensure the genuinely of the questionnaire and its appropriateness to the study. This makes the instrument used valid for the research. Reliability measures the uniformity of the instrument adopted for the study (Zikmund et al, 2010). The study adopted the Cronbach Alpha to measure the reliability of the instrument used in taking data from the respondents. Lee Cronbach developed the Cronbach Alpha in 1951 to test the internal consistency of investigation or measure. The internal consistency explains the level at which items in a given instrument measure the same concept (Baako, 2016). According to Sekaran, (2000) as cited in Tossy, (2014), Cronbach Alpha reliability below 0.60 is assumed to be poor, if the value is in 0.7 they is satisfactory, and the reliability value above 0.8 is considered good. The closeness of Cronbach?s alpha to 1.0 the better is the reliability. Many studies recommend Cronbach Alpha of 0.70 or greater (Mitchell and Jolley, 2010). The reliability of the constructs of this study is 0.70 and above and therefore could be concluded that the items used in the have good reliability.
3.9 Data Analysis
The study employed descriptive statistics in analysing the demographic data and the usage of mobile money service. Data gathered through the questionnaire administration was coded into the Statistical Package for Social Science (SPSS) for analysis. The data was organised according to appropriate features under examination. Means and standard deviation are used in explaining some outcomes. The results presentations were in tables and charts.

3.9.1 Multiple regression
The hypotheses of the study were tested using multiple regression analysis to evaluate the level at which the independent variables predict the dependent variables, that is, the factors that influence the adoption of mobile money service. The regression model describing the adoption of mobile money service is given as;
MMU = ?0+ ?1CS+ ?2ACC+ ?3SI+ ?4TC+ ?
Where;
MMU= Mobile money usage; the dependant variables on factors influencing the adoption of mobile money service. This factors directly affect the perceived usefulness (PU) and for the purpose of this study, MMU is equated to PU of the mobile moneys service.
CS= Convenient savings
ACC= Accessibility
SI= Social influence
TC= Transaction cost
?1, ?2, ?3 and ?4 are the predictable factors of the model while ? represent the error term. The regression analysis equation explains the extent of relationship between two variables (Creswell, 2009). The regression analysis help in evaluating the influence of the construct used on the mobile money adoption through the perceived usefulness.
To measure the adoption of the MMS, the study hypothesised that there is a statistical relationship between independent variables, that is, convenient savings (CS), accessibility (ACC), social influence (SI) and transaction cost (TC) and the perceived usefulness (PU), the dependent variable.
Perceived usefulness and perceived ease of use have direct positive relationship with the adoption of mobile money service. Positive statistical relationship between the independent variables (constructs) and the dependent variable (perceived usefulness) is inferred to mean reason towards the adoption of the MMS whiles negative statistical relationship between the independent variables (constructs) and the dependent variable (perceived usefulness) is inferred to mean impediment on the adoption of mobile money service.

Higher statistical value (positive or negative) indicates the extent to which the independent variable(s) predict the dependent variable.

3.9.2 Correlation analysis
To avoid the problem of multicollinearity, correlation analysis was done to determine whether the variables are correlated. High correlation between variables shows the existence of multicollinearity. Multicollinearity in a regression analysis shows the interrelation that exist between the independent variables in the model. If two or more of the variables are highly correlated, it could mean that those variables are computing the same thing (Bordens and Abbot, 2011).