Information technology is very essential in changing the banking industry worldwide. Introduction of internet banking offers banking firms a new leading edge of opportunities and challenges. Extensive application and adoption of this knowledge and skills allows banks to create solutions and plans to attract consumers to their internet banking services, thus enabling these institutions in gaining a greater share in the business industry. In Tanzania, we are still behind on the long run track of internet banking. We are far off mainly because internet banking is a new industry hence the acceptance and the use of internet banking is limited. To date very little research has been conducted on factors which influence consumer adoption of internet banking therefore, there is a need for this study. This study investigates attitudes of Tanzanians banking customers towards the adoption of internet banking. This research is specifically targeted to people in Nyamagana District. The research framework based on the diffusion of innovation theory was used to identify factors that would influence the adoption of internet banking. This report has reviewed current literature and opinions about this innovative banking technology. It has also focused factors like: consumer demographic characteristics, consumer perceptions toward internet banking characteristics and social influences that affect consumer adoption on this mode of banking. It has also looked at how the extensive of internet banking can be measured. Explanations of the methodology used in conducting 425 interviews to obtain primary information for this study is given. Results of the 425 interviews and the analysis of these results; with graphs and figures to determine the extent that the factors studied influence customer adoption of internet banking, is also analyzed. The research objectives were tested by using descriptive statistics tools such as bar graphs and statistical tables so as to measure the xix relationship between consumers’ demographic characteristics and the adoption of internet banking. Bar graphs and statistical tables were used to describe differences between users and non-users in terms of their perceptions of internet banking. The key findings reveal that demographic factors including age, income, education level and occupation have a relationship with the adoption of internet banking. Psychological factors including perceived relative advantage, perceived compatibility, perceived complexity, perceived risk, and perceived cost were found to influence the adoption of internet banking. Social influences including opinions of friends, parents and colleagues were not found to be significant factors to influence the adoption of internet banking in the Tanzanian context. The theoretical contributions and the practical implications of the findings are discussed and suggestions for future research are presented.