Factors Affecting Use of Mobile Money Services on Loans Repayment for Saving and Credits Cooperative Societies (SACCOS) in Rombo District, Tanzania


  • Pelagi Gotifridi
  • Joseph Magali


Mobile money services, Loan repayment, Savings and Credits Cooperative Societies (SACCOS), Tanzania


This study assessed the factors affecting the use of mobile money on loan repayment in Savings and Credits Cooperative Societies (SACCOS) in the Rombo District in Tanzania. Specifically, the study assessed the influence of perceived usefulness (PU), perceived ease of use (PEOU) and perceived risks (PR) of mobile money service on loan repayment in SACCOS. The study used descriptive and correlation analysis and a population of 17 SACCOS. Two SACCOS with a population of 2,724 borrowers were used to select the sample size of 120 borrowers using a systematic random sampling technique. The findings indicated that only 36% of borrowers repaid loans using mobile phones. Through correlation analysis, the results indicated that PU and PEOU did not significantly influence the mobile loan repayment while PR negatively and significantly influenced the mobile loans' repayment. The study recommends the formulation of policies that will guide mobile money loan repayment in Tanzania. The study further recommends that SACCOS clients should be trained on the importance of repaying loans through mobile money. This will enable tracking of the repaid loans and increase the loans repayment performance which seems to be a challenge for most of the SACCOS in Tanzania.

Author Biographies

Pelagi Gotifridi

MBA student, The Open University of Tanzania

Joseph Magali

The Open University of Tanzania