Advances in Economics and Business Vol. 13(1), pp. 13 - 23
DOI: 10.13189/aeb.2025.130102
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The Uptake of Mobile Money in Uganda: Application of a Modified UTAUT2 Model to Explore Antecedent Factors

Tomasi Mutya ^1,*, Robert Agwot Komakech ^2
1 Faculty of Social Sciences & Management Studies, Kumi University, Uganda
² Institute Research & Innovation Centre, Uganda Management Institute, Uganda

ABSTRACT

Advancement of Mobile Money (MoMo) promotes inclusive finance for economic development in developing countries. Although mobile devices have wide coverage in developing countries like Uganda, the MoMo adoption rate is not aligned. Improving the MoMo adoption frequency may reduce inequality, poverty, and hunger, and enable innovations in low-income countries. Thus, the study examines the antecedent factors of MoMo adoption in Uganda, using a modified UTAUT2 model. Quantitative data was collected from 302 MoMo users (MTN and Airtel), and a systematic sampling technique was applied. The structural equation model was used for analysis. Findings indicate that perceived convenience, perceived credibility, price, effort expectancy, facilitating conditions, and performance expectancy impact MoMo adoption, while hedonic motivation was insignificant. These findings provide valuable insights for financial institutions, telecom firms, and central banks on the factors that drive MoMo adoption and can help enhance customer satisfaction and referral base while promoting sustainable financial inclusion through 1) provision of customised mobile applications that require less effort, 2) regular system maintenance by telecom companies to ensure uninterrupted mobile money performance, 3) promoting group saving schemes with mobile money to encourage more people to adopt and use it, 4) pricing strategies being equitable and transparent, 5) government agencies like the Uganda Communication Commission (UCC) advertising credible telecom companies, 6) telecom companies and financial institutions supporting mobile money agents with uninterrupted liquidity to serve rural communities. The study contributes to digital finance literature and provides practical insights for the future.

KEYWORDS
Mobile Money, Mobile Money Adoption, UTAUT2 Model, Uganda

Cite This Paper in IEEE or APA Citation Styles
(a). IEEE Format:
[1] Tomasi Mutya , Robert Agwot Komakech , "The Uptake of Mobile Money in Uganda: Application of a Modified UTAUT2 Model to Explore Antecedent Factors," Advances in Economics and Business, Vol. 13, No. 1, pp. 13 - 23, 2025. DOI: 10.13189/aeb.2025.130102.

(b). APA Format:
Tomasi Mutya , Robert Agwot Komakech (2025). The Uptake of Mobile Money in Uganda: Application of a Modified UTAUT2 Model to Explore Antecedent Factors. Advances in Economics and Business, 13(1), 13 - 23. DOI: 10.13189/aeb.2025.130102.