Abstract:
This study investigates the key factors influencing the expansion of mobile money services, with
a specific focus on Telebirr in Ambo Town, Ethiopia. Despite growing adoption of digital
financial services across the country, the pace and depth of Telebirr's expansion vary
significantly by location and demographic profile. This research aims to examine how socio
economic characteristics, infrastructure availability, regulatory frameworks, and cultural
norms affect the growth and acceptance of Telebirr services. A mixed research approach quan
titative and qualitative was employed to analyze the factors influencing the expansion of
Telebirr services and quantitative data collected through structured questionnaires (n = 350)
and qualitative insights obtained from semi-structured interviews with local users, agents, and
stakeholders. The study was utilized both descriptive and explanatory research design.
Descriptive statistics revealed high awareness and frequent usage of Telebirr for basic
transactions such as transfers and bill payments. However, challenges including limited agent
networks, occasional service interruptions, and cultural hesitancy were noted. Inferential
analysis using multiple linear regression showed that all four independent variables socio
economic factors, infrastructure, regulatory support, and cultural norms significantly influence
the expansion of Telebirr (R² = 0.741, p < 0.001). Among these, cultural norms and regulatory
frameworks emerged as the strongest predictors. The findings suggest that beyond
technological readiness, successful expansion of mobile money services in Ethiopia requires
attention to socio-cultural dynamics, regulatory clarity, and financial literacy. The study offers
practical recommendations for policymakers, Telebirr operators, and community stakeholders
to support inclusive digital finance strategies. Ultimately, the research contributes to the
growing body of literature on mobile money in Sub-Saharan Africa and provides actionable
insights for enhancing financial inclusion through mobile platforms in urbanizing contexts.
