DETERMINANT FACTORS AFFECTING THE ADOPTION OF TELEBIRR MOBILE MONEY SERVICE: IN THE CASE OF GONDAR CITY

Abstract

This study aimed to identify the Determinant Factors Affecting the Adoption of Telebirr Mobile Money Service in the Case of Gondar City and to use the findings to propose strategic recommendations for Ethio Telecom to enhance service uptake. A quantitative research method was applied, drawing on primary data collected from Telebirr users in Gondar City. A total of 400 questionnaires were distributed, of which 353 valid responses were obtained and used for analysis. To examine the relationship between adoption and its predictors—awareness, perceived usefulness, ease of use, prior knowledge, and perceived risk—both descriptive and explanatory research design were employed. The data were analyzed using SPSS Version 26, and the assumptions of multiple regression analysis (including autocorrelation, homoscedasticity, normality, linearity, and multicollinearity) were fully tested and satisfied. The Pearson correlation analysis revealed that perceived usefulness had the strongest positive correlation with adoption (r = .482, p < .01), followed by ease of use (r = .263, p < .01), awareness (r = .255, p < .01), and prior knowledge (r = .217, p < .01). Perceived risk showed no significant correlation (r = .043, p > .05). Regression analysis further confirmed that awareness (β = .611), perceived usefulness (β = .514), and ease of use (β = .278) had significant and positive impacts on adoption, while perceived risk (β = –.433) had a significant negative effect. Prior knowledge was found to have no statistically significant influence (p > .05). The regression model was statistically significant (F = 319.47, p < .01) with an adjusted R² of .813, indicating that 81.3% of the variation in Telebirr adoption was explained by the model's independent variables. Based on these findings, it is recommended that Ethio Telecom focus on increasing user awareness, enhancing the perceived usefulness and ease of use of the service, and minimizing perceived risks—particularly by improving network reliability and service security. Doing so can significantly boost Telebirr's adoption rate and better serve users in Gondar City and beyond.