Abstract:
This study aimed at Assessing factors affecting adoption of Tele birr Digital payment
in Ambo Town. The study intended to examine the determinant factors affecting the
adoption of Tele Birr Digital Payment Platform with a particular focus on tele birr
customers in Case of Ethio Telecom Central West Region in Ambo Town. Adoption can
be measured using the following variables: Awareness, perceived ease of use,
perceived usefulness, perceived risk, and Prior Knowledge. The research is
explanatory by nature and it followed a quantitative approach, thus a deductive
research approach was used. Data were collected through a five points Likert type
summated rating scales based questionnaire. Relatively a large sample of three
hundred eighty-fours was surveyed. Correlation and regression analysis has been
deployed to determine the strength of association between the dependent and
independent variables. Once the use of these regression and correlation analysis is
warranted; that is after the analysis test is qualified then the coefficient of regression
analysis was used to substantiate or disprove the formulated hypothesis. The study
revealed that all variables have a significant effect on the adoption of Tele Birr digital
platform in the study area. Finally, the research found that perceived risk is the more
significant factor that affects adoption of Tele birr followed by Awareness, perceived
ease of use, perceived usefulness, and Prior Knowledge. The study, therefore,
recommends that Ethio telecom replace the usage of USSD code with simple means for
customers to access the Tele birr Digital payment menu. Technologies such as SIM
Tool Kit (STK) and Near Field Communication (NFC) would be suitable if they want
the proximity Tele birr digital payment to pick up. Ethio telecom should also increase
number of Tele birr merchants to reach more people and also in collaboration with
government to educate people on the importance of the service
