The Impact of Government Electronic Transaction Levy on the Continuous Adoption of Mobile Money Transactions in Ghana

Abstract

This paper examined the Government's new policy of electronic transaction levy on the continuous adoption of mobile money transactions among Ghanaian citizens. Since the e-levy was introduced in May 2022 no empirical study has investigated how this policy can influence the adoption of mobile money services (transactions), especially when the vast majority of Ghanaians were against the implementation of the e-levy policy. Using the unified theory of acceptance and use of technology (UTAUT) as the theoretical framework, the study analyzed the data generated based on the structural equation modeling (SEM) technique utilizing the SPSS and AMOS statistical software. The results have demonstrated that the government electronic transaction levy (GETL) was negatively associated with the continuous adoption of mobile money transactions (MMT), performance expectancy, effort expectancy, and facilitating conditions. Additionally, the study showed that performance expectancy and facilitating conditions are significant predictors of the continuous adoption of mobile money transactions. However, effort expectancy was not significant in driving the continuous adoption of mobile money transactions. The theoretical and managerial implications of these findings on the development and diffusion of mobile money transactions in Ghana are thoroughly dissected.