Abstract:
Mobile Money Transfer (MMT) is the transferring of money from one person to another through
the use of mobile phones. MMT was initiated in 2003 in Kenya but gained popularity around 2007
and spread to other East African countries including Tanzania, where it has been adopted by
financial institutions and other service-oriented organisations. The main objective of this study was
to assess the use of MMT by looking at how it affects the quality of financial services, especially
by looking at four selected quality indicators which are accessibility, security, cost and timeliness.
A survey design was used and data was collected using questionnaires and face to face interviews.
A total of 93 members and 3 SACCOs' staff were interviewed to obtain the data. The data collected
was analysed qualitatively using reflexive and interpretive techniques and quantitatively using
SPSS. The findings indicate that in the opinion of members of TANESCO SACCOs, the use of
MMT has greatly improved the quality of financial services by improving accessibility and
security, and reducing costs and time to access financial services while bluring geographical
barriers by making financial services available anywhere at any time. It is recommended that other
financial institutions in Tanzania, especially those operating in rural areas should also consider
adopting MMT as a medium of transferring money and encourage the members to use this system
as it is cheaper, safer, less costly and quicker than other methods available today.
