Factors influencing the adoption of mobile banking among lower-income groups in Gauteng

Abstract

The focus of the study was to determine factors that influence the adoption of mobile banking among lower income groups in Gauteng. The theoretical framework was based on TAM, UTAUT, Theory of Perceived Risk and Trust Transfer Theory. (SPSS v27) was used to check the quality of the data from 200 respondents in Cities, Towns and Townships in and around Gauteng where data was collected using a self- administered survey to address the research objectives. This quantitative study aimed to investigate the role of Perceived Trust (PT), Perceived Ease of Use (PEOU), Perceived Cost (PC), Perceived Risk (PR), and Facilitation Conditions (FC) in the application of behavioural intention (BI) towards mobile banking services. The initial hypotheses for the following constructs were supported: PC was accepted to have a negative effect on BI; PEOU was accepted toe have a significant positive effect on BI; PR2 was found to have a significant effect on BI; and FC had a significant positive effect on BI. However, the initial hypothesis for PR1 was rejected because it had no significant effect on BI. Age and PEOU variables had no significant relationship, and the hypothesis of income and PC having a significant relationship was also rejected. In the past there are studies that looked at mobile banking adoption in South Africa. However, none of them have focused of mobile banking adoption among lower income groups in Gauteng. This study focuses on factors influencing adoption of mobile banking among lower income groups in Gauteng where they are found to be an important contributor to financial institutions