Determinants of Consumers’ Intention to Use E-payment System in Shopping Malls in Dar es Salaam, Tanzania: Modified UTAUT Model Approach

Abstract

The aim of the study was to determine factors that influence customers’ intention to use the e-payment system in Dar es Salaam’s  shopping malls. Bearing the importance of financial inclusion, there is no doubt electronic payment development will strongly contribute to improving countries competitiveness in many ways. However, despite the growth rate of ICT utilization particularly internet and mobile  phones and an exponential rate of online communication and interactions, Tanzania is yet to harness the opportunities for e  -payment. The study applied the modified UTAUT model to investigate factors that influence customers’ intention to use the e-payment  system in Dar es Salaam shopping malls. Data were collected from a sample of 460 customers selected from 5 shopping malls in Dar es  Salaam and tested against the research model using SEM. The results showed that three factors (Social Influence and Perceived Security  and Effort Expectancy) had a significant positive effect on customers’ intention to use the e-payment system in Tanzania; Perceived  Security being the strongest determinant. Conversely, Perceived Cost was found to have a significant negative effect on customer  intention on the use e-payment system in Tanzania.