Assessing the adoption potential of online currency exchange systems: A case study of currency dealers in Mogadishu, Somalia

Abstract

This study investigates the readiness of currency dealers in Somalia to adopt online currency exchange systems, addressing the research question: What factors influence the acceptance and adoption of online currency exchange platforms in an unregulated market? Using a quantitative approach, data were collected from 173 currency dealers in Mogadishu and analyzed through Structural Equation Modelling – Partial Least Squares (SEM-PLS). The findings reveal that perceived usefulness, ease of use, and compatibility significantly impact user acceptance and adoption of online currency exchange platforms, while perceived risks and privacy concerns have no significant effect. Social factors also play a crucial role in influencing acceptance and adoption decisions. The study suggests that implementing a well-designed, user-friendly, and business-aligned online exchange system can enhance efficiency and reduce transaction costs, minimizing time-intensive processes and associated expenses. By examining technology acceptance and adoption in an unregulated financial market, this research provides new insights into digital transformation in currency trading and contributes to the broader literature on financial technology adoption in developing economies.