AN INVESTIGATION OF THE ADOPTION OF MOBILE MONEY TRANSFER SERVICE IN SOMALILAND BY SA’AD ABDIRISAK AHMED A dissertation submitted in fulfilment of the requirement for the degree of Master of Information Technology Kulliyyah of Information & Communication Technology International Islamic University Malaysia SEPTEMBER 2015 ABSTRACT The production of handheld devices and the high-speed mobile network have created another revolution in the world of commerce. Especially mobile commerce which is thought to be the next phase in technologically dependent society. Mobile Money Transfer Service is a type of mobile commerce which is mainly developed by Network Providers and Banks. This new service which is a new payment solution has emerged as part of mobile commerce. Thus, this study aims at examining the factors influencing customers’ adoption of Mobile Money Transfer Services in Somaliland. Technology Acceptance Model (TAM) with two extra constructs were used to form the theoretical framework of the study. Therefore, the model comprises of four independent variables; Perceived Ease of Use, Perceived usefulness, Perceived Trust and Perceived Risk, and one dependent variable; Behavioral Intention to use and adopt the Mobile Money Transfer Service in Somaliland. The population of the research comprised of Somaliland citizens who reside in the country and use the service. The study used simple random sampling technique to select the participants. Out of 384 questionnaire that were distributed, 201 valid responses were received. Apparently, the research involved Telesom Telecommunication company customers who use Mobile Money Transfer services in Somaliland which is known as Zaad Service. In analysing the data collected, various statistical methods and techniques were used. Such tools are; the use of descriptive analysis in analysing respondents profile, multiple regression analysis for measuring relationships between variables, T-test for testing the influence of gender on relationships and ANOVA for testing the influence of different age groups on relationships. The results show that Perceived Ease of Use, Perceived Usefulness and Perceived Trust has positive significant influence on Behavioral Intention of customer’s use and adoption the service while Perceived Risk did not have any significant influence. The extended model explained 75 percent of consumer’s intention to use and adopt Mobile Money Transfer Service. In addition, the result show that there are no significant difference by gender on the influention to use the zaad service, but there are significant difference across different age groups. ii خﻻصة البحث ABSTRACT IN ARABIC إن انتاج اهلواتف احملمولة وشبببببببوااف اهلواتف اذتىوال روة العببببببب أة ال الرة يف امل وال أا التجاال. خاصببببببة ا التجاال اذتليت ة الد أ تيت ان تاون اﻷبببببباﻷببببببا لمعراع اليتا ة تم أ تم أ ى التالولوعرببا. خبب ببة ﻷوأبب ا واع ابهلبباتف نوم ا التجبباال اذتليت ببة الد ر تىوأ قببا ا يفوبب شببببببب صاف اوتملببببببباوف واذملبببببببااص. ق ح ال ة اﻻ أ ل اصبببببببو مل ل او واع ابهلاتف ور تملبببببببببلمن ا عجا ا التجاال اذتليت ة. وقا ا ل ص ق ح ال ااﻷبببببببببة إيت ااﻷبببببببببة ال وا الد ت اأتما خ ة ﻷوأ ا واع ابهلاتف صببو اون . واﻷببت ال ااﻷببة بورج يفووع التالولوعرا ا لني ا واب إضا رة لتشار اﻹطاا اللظ ي ل ااﻷة. ل لك ان اﻹطاا اللظ ي أتألف ا ااب ة تغرياف عبببببببببتيت ةس ﻷببببببببب ولة اﻷبببببببببت او الناى ل الليتة واذ اط و تغري م عبببببببببتيت س اللرة وﻷبببببببب وصرة اﻷببببببببت او واأتما خ ة ﻷوأ ا واع ابهلاتف ا صببببببببو الر ن . ﻷبببببببباان الو ق اذواطلون ال أا أيترمون اخ الو واﻷبببببت ال ااﻷبببببة اﻷببببب وئ ال رلة ال شبببببواىرة الوعبببببرىة لت أ اذشبببااصني. وصان ال و 201 صبببامة ا اصببب 384. أ ى ا أو و شببباا ا الو أم ء أعببببببت ون خ اف شبببببب صة تر رعببببببوو ل تملبببببباوف العبببببب ارة وال ﻷبببببب ارة خاصببببببة أم ء أعبببببببببببببت ون خ ة ﻷوأ ا واع ابهلاتف ال ي أ ص ابﻷببببببببببببب خ ة ا . ب الورا ف ر اﻷبببببببت او اﻷبببببببالر وتيتلراف بت ف لت ر الورا ف. ا ا واف الح اﻷبببببببت الت ر ف الوصبببنرة والد إﻷبببت و ﻷ ر الشببب ملبببراف ا ال ااﻷبببة اأ بببا ﻷ ر اودح اا اذت وال ة إﻷبببببببببببببت بب بب ليترببا ال يفببة بني اذتغرياف ور أمبب إختوببااف ل ميتبباانببة بني اﻻلعبببببببببببببني. واخريا اﻷبببببببت م ا نو ا لت ر تغري ال م . وتوني اللتاىف ان الناى ل وﻷببببببب ولة وﻷبببببببت او والليتة هلا ري صوري أ ى نرة وﻷبب وصرة اﻷببت او واأتما ال ة ملني أاا ري صوري ذتغري اذ اط . واوضبب اﻹطاا اللظ ي ل ااﻷببببببببببة ان 75 اذئة ا نرة اذعببببببببببت و ر ﻷ أ ح ا اذتغرياف. صما تظ اللتاىف اي اخت ص صوري ملعببببببببب نوم اﻻل،. واخريا ألايف ال اﻷبببببببببة امنا اذ توة أ ى ص ا اذببببببببببمببببببببببااﻷبببببببببببببببببببببببني وا صببببببببببا ببببببببببرببببببببببني وصبببببببببب لببببببببببك ايفبببببببببب املبببببببببباف ﻹعبببببببببب اء ببببببببببجأبببببببببب ببببببببببا الو وث. iii APPROVAL PAGE I certify that I have supervised and read this study and that in my opinion, it conforms to acceptable standards of scholarly presentation and is fully adequate, in scope and quality, as a dissertation for the degree of Master of Information Technology. ………………………………….. Ishaq Oyebisi Oyefolahan Supervisor I certify that I have read this study and that in my opinion it conforms to acceptable standards of scholarly presentation and is fully adequate, in scope and quality, as a dissertation for the degree of Master of Information Technology. ………………………………….. Mohamed Razi Jalaldeen Examiner This dissertation was submitted to the Department of Information Systems and is accepted as a fulfilment of a requirement for the degree of Master of Information Technology. ………………………………….. Asadullah Shah Head, Department of Information Systems This dissertation was submitted to Kulliyyah of Information and Communication Technology and is accepted as a fulfilment of a requirement for the degree of Master of Information Technology. ………………………………….. Abdul Wahab Abdul Rahman Dean, Kulliyyah of Information and Communication Technology iv DECLARATION I hereby declare that this dissertation is the result of my own investigation, except where otherwise stated. I also declare that it has not been previously or concurrently submitted as a whole for any other degrees at IIUM or other institutions. Sa’ad Abdirisak Ahmed Signature……………….……. Date ….......................................... v COPYRIGHT PAGE INTERNATIONAL ISLAMIC UNIVERSITY MALAYSIA DECLARATION OF COPYRIGHT AND AFFIRMATION OF FAIR USE OF UNPUBLISHED RESEARCH Copyright © 2015 by Sa’ad Abdirisak Ahmed. All rights reserved. AN INVESTIGATION OF ADOPTION OF MOBILE MONEY TRANSFER SERVICE IN SOMALILAND No part of this unpublished research may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise without prior written permission of the copyright holder except as provided below. 1. Any material contained in or derived from this unpublished research may be used by others in their writing with due acknowledgement. 2. IIUM or its library will have the right to make and transmit copies (print or electronic) for institutional and academic purposes. 3. The IIUM library will have the right to make, store in a retrieval system and supply copies of this unpublished research if requested by other universities and research libraries. Affirmed by Sa’ad Abdirisak Ahmed ……..……..…………… ………………….. Signature Date vi DEDICATION This document is dedicated to my parents, my Uncle Mohamed Ahmed Abdilahi and Aunt Khadra Ismail. vii ACKNOWLEDGEMENTS First and foremost, I am thankful to Allah SWT, the Most Gracious and the Most Merciful for giving me the chance to pursue Master Degree. Without His blessings I would not have the strength and patience to complete this study successfully.I would like to express my sincere gratitude to my supervisor Dr. Ishaq Oyebisi Oyefolahan for his guidance, patience, ideas, efforts and valuable teachings and advices throughout the entire process of writing this research paper. I would not be able to complete this study successfully without his assistance, guidance, and supervision.I would also like to register my special thanks to all KICT lecturers for their teachings and support in successfully completing my Master program and at the forefront of them our respectful dean Prof. Dr. Abdul Wahab Abdul Rahman. I would also like to extend my heartfelt thanks to my friends Abdurahman Mussa, Mohamed Saeed, Shuaibu Hassan and Abdulfatah for their support, friendship and suggestions in completing this study. Finally, I would like to write my deepest gratitude to my parents, my uncle, aunt, my siblings for their love, care and deep concern for me in their life. Thank you all viii TABLE OF CONTENTS Abstract .................................................................................................................... ii Abstract in Arabic .................................................................................................... iii Approval Page .......................................................................................................... iv Declaration ............................................................................................................... v Copyright Page ......................................................................................................... vi Dedication ................................................................................................................ vii Acknowledgements .................................................................................................. viii List of Tables ..........................................................................................................