“Analyzing the Factors Influencing the Expansion of Mobile Money Services: A Case Study of Telebirr in the Ambo Town”

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.