Article-2 Challenges and Recommendation for the Adaptation of Mobile Financial Service: A Study on Small Businesses of Service Industry

Abstract

In today's global economy, Mobile Financial Services (MFS) have emerged as a game-changer, especially in developing countries like Bangladesh. MFS is the perfect solution for small businesses seeking secure, reliable, and affordable financial services. However, despite its undeniable advantages, the adoption of MFS by small businesses in Bangladesh's service industry remains limited. This research paper aims to explore the challenges of MFS adoption by small businesses in Bangladesh and propose strategies to overcome the barriers hindering its growth. The paper employed case study methodology, and 16 businesses were interviewed to acquire the necessary data. We found, low frequency of use, lack of skilled employees to manage mobile transactions, fear of large ticket transactions, attempting to reduce taxes through evading MFS payments and slow internet connectivity are prevalent challenges. The MFS providers (MFSP) may address these problems by encouraging MFS use for large transactions, providing incentives for stakeholders, improving education for MFSP, addressing tax concerns and making the dial up method of using MFS more intuitive. Finally, the paper hopes to contribute to the growth and expansion of Bangladesh's MFS industry by addressing the challenges faced by the businesses, as the country moves toward a cashless economy.