Dissertation (Masters of Business Administration)The study on effectiveness of mobile money services on performance of SMEs in Tanzania was conducted in Dar es Salaam city. The study focused on examining the financial and operational factors influencing the usability of the mobile money services by the SMEs owners and determining the relationship between the financial and operational factors influencing the usability of the mobile money services and performance of SMEs respectively. Three municipals ward namely Kinondoni, Ilala and Temeke were involved in the study. A sample of 147 respondents was involved in the study. Data collection methods included Questionnaire and Documentary review. The Survey research design was employed. Both Primary and Secondary data were analyzed using Statistical Packages for Social Sciences (SPSS) Software version 23.0 and the results were presented in the form of tables using frequencies and percentages. Findings were certain that all the independent variables were found positive but only five factors (ease of use, security, ease of accessibility, convenience of technology and time saving) were statistically significant (p>0.05, α=1%) and one factor (cost saving) was statistically insignificant (p<0.05, α=1%) on performance of Small and Medium Enterprises (SMEs) in Tanzania. The study recommends that the service providers as well as government through its agency (Tanzania Communication Regulatory Authority-TCRA) must consider lowering or standardizing the costs that are associated with mobile money services as many enterprises are highly suffering from the costs incurred as they are very high.