Assessment of Mobile Payment Method as Alternative to Cash Payment: SMEs Perspective in Morogoro Municipal, Tanzania

The rapid expansion of mobile payment systems has transformed financial transactions globally, offering convenience, security, and financial inclusion. Sub-Saharan Africa, particularly Tanzania, has emerged as a leader in mobile financial services; however, cash remains the dominant payment method for small and medium enterprises (SMEs). This study assessed mobile payment methods as alternatives to cash payments among SMEs dealing with agricultural products in Morogoro Municipal, Tanzania. Guided by the Push-Pull-Mooring (PPM) theory of migration, the research employed a descriptive design with a qualitative approach, surveying 286 randomly selected entrepreneurs across three major markets. Data were collected through researcher-administered questionnaires and analysed using descriptive statistics and ordinal logistic regression. Findings revealed that while mobile money account ownership is nearly universal (99%), mobile payments are primarily used for bill payments, airtime purchases, and money transfers, with limited adoption for purchasing goods. Key factors influencing switching intention included transaction costs, perceived security, social efficacy, awareness, ease of use, law enforcement, and relative advantage. Despite high mobile money penetration, SMEs continue to prefer cash for daily transactions, reflecting barriers such as low merchant acceptance and trust issues. The study concludes that reducing transaction costs, enhancing security, and strengthening regulatory enforcement could accelerate SME adoption of mobile payments, thereby promote financial inclusion and reducing risks associated with cash handling.