The adoption of cell phones in South Africa has been phenomenal, yet the use of cell phones for financial transactions has been minimal. This paper identifies and examines the process leading to the adoption/non- adoption decision in order to gain a better understanding of why this innovation has not as yet diffused widely. The study was conducted using a grounded theory approach. The factors that were found to have an influence on the adoption decision were resistance to change, exposure, relative advantage, perceived ease-of-use, perceived risk and cost. These were incorporated into a framework depicting the relationships and interactions between these categories.