Title: The e-levy and financial inclusion: user acceptance of digital transaction in Tanzania's mobile payment landscape

Authors: Justus Mwemezi; Herman Mandari

Addresses: Banking and Finance Services Department, The Institute of Finance Management, 11101 Dar es Salaam, Tanzania ' Computer Science Department, The Institute of Finance Management, 11101 Dar es Salaam, Tanzania

Abstract: The introduction of an electronic transaction levy has introduced complexities affecting banks, mobile service providers, and consumers. This study examines the moderating impact of the e-levy on electronic transactions in Tanzania. Using a survey of 472 respondents, the study employs the extended UTAUT model to assess factors influencing the actual usage of electronic transactions. Furthermore, the study examines the moderating impact of the electronic transaction levy. Results indicate that while performance expectancy, effort expectancy, social influence, price value, and habit significantly influence behavioural intentions, the electronic transaction levy negatively moderates the relationship between Habit and actual usage. The findings highlight the tension between revenue generation through taxation and the goal of financial inclusion, suggesting that the electronic transaction levy may undermine efforts to integrate underserved populations into the financial system. The study provided recommendations to reconsider the electronic transaction levy (ETL) to enhance financial inclusion.

Keywords: e-levy; financial inclusion; Tanzania; E-transaction; mobile money.

DOI: 10.1504/IJEG.2025.148157

International Journal of Electronic Governance, 2025 Vol.17 No.2, pp.222 - 243

Received: 04 Aug 2024
Accepted: 03 Mar 2025
Published online: 27 Aug 2025 *

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