International Conference on Economics, Finance & Business, London

TRUST AND SECURITY IN MOBILE MONEY TRANSACTIONS: EXAMINING THE ROLE OF PERCEIVED RISK AND USER CONFIDENCE IN GHANA.

SEWORNU KOBLA AFADZINU

Abstract:

The proliferation of mobile money (MoMo) services has transformed Ghana’s financial ecosystem by providing an accessible and convenient platform for digital financial transactions. Despite its rapid adoption, genuine concerns about trust, security, and perceived risk persist, influencing user confidence and engagement. This study investigates the interplay between perceived risk, trust, and the adoption of mobile money services in Ghana. The problem stems from the gap in existing research, which has predominantly focused on the economic and financial benefits of mobile money while neglecting the behavioral and psychological dimensions of trust and security. This research, therefore fills this gap by analyzing how perceived risk and trust influence mobile money adoption and sustained usage. The objectives of this study include identifying key factors that shape user trust, assessing the impact of security concerns on transaction behavior, and proposing policy recommendations to enhance the security framework of mobile money services in Ghana. The study is anchored in the Technology Acceptance Model (TAM) and Perceived Risk Theory, providing a theoretical framework to understand the psychological mechanisms that govern mobile money adoption. The study employs a quantitative research design, utilizing a survey-based approach to collect empirical data from mobile money users across diverse demographic and socio-economic backgrounds in Ghana. The study finds that while mobile money usage is widespread, security concerns significantly influence user behavior. Specifically, users who perceive mobile money as more secure than traditional banking institutions exhibit higher transaction frequency, whereas those with concerns about fraud, unauthorized deductions, and system failures engage less frequently in mobile money transactions. The findings also reveal that perceived risks financial, privacy, performance, social, and security risks moderate user trust and engagement. Additionally, the results highlight a paradox wherein users continue to rely on mobile money services despite trust deficits, driven by the platform’s convenience and accessibility. This suggests that while perceived usefulness (a key construct in TAM) drives adoption, security concerns (as posited by Perceived Risk Theory) temper sustained engagement. The study contributes to the discourse on digital finance and financial inclusion by emphasizing the need for robust security measures to enhance user confidence in mobile money services. Policy recommendations emerging from the findings include strengthening consumer protection measures, implementing financial literacy programs to educate users on safe mobile money practices, improving regulatory oversight to mitigate fraud risks, and investing in advanced cybersecurity measures such as biometric authentication.

Keywords: Digital Financial Services; Financial Inclusion; Mobile Money; Perceived Risk; Transaction Security; User Confidence