Implication of Mobile Money Transaction Fees on Business Growth: A Case of Viwandani Ward Dodoma.

Abstract

High transaction costs make it difficult for small income earners to participate in the business transaction, yet previous attempts to lower these costs have not always been successful. The increasing use of digital payments offers fresh insights into addressing market access issues. This study assesses the influence of cash withdrawals on business growth among M-pesa agencies in Dodoma. This study opts for a survey questionnaire for 71 service providers of the Mpesa agency and the FGD method for 10 customers of M-pesa agencies. This study used a cross-sectional research design. The findings reveal that cash withdrawals have a positive significant influence on business growth among M-Pesa agencies with a p-value of 0.000, indicating that cash withdrawals have a substantial impact on the expansion of MPESA agencies' businesses. Additionally, it was discovered that the majority of respondents cited network issues as a barrier to cash withdrawals. The study concludes that, as the majority of the agencies argued, there isn't much cash being placed by customers into their accounts. As a result, the customer's cash withdrawal transaction is not as good as previous transactions. Customers don't deposit cash as frequently as they should, which slows down business expansion. The study recommends to the government that, it should reduce the direct fees to increase the volume and frequency of cash deposits. This could be done by enabling customers to easy and friendly transaction costs to the mobile money transaction services because its service nearby low-income citizens.