Factors influencing adoption of electronic payments by Commercial Banks in Kenya
View/ Open
Date
2017Author
Mbwayo, Elizabeth M
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
Electronic payments is one of the technologies that has been significantly affected in the
field of businesses. Electronic payments have greatly revolutionized the manner in which
businesses conduct their operations and transactions by making payments of goods and
services a convenient and flexible process. However, despite the potential benefits posed
by electronic payments especially to financial institutions, several commercial banks in
Kenya have been lagging behind in adopting this technology. It is against this backdrop
that this research purposed to investigate factors influenceing the adoption of electronic
payments by Kenyan commercial banks. In fulfilling this objective, this research was
guided by three objectives; assessing the extent to which commercial banks in Kenya
have adopted electronic payment systems, identifying the key factors influencing the
uptake of the electronic payments by the commercial banks, and identifying the main
challenges and benefits associated with the adoption of electronic payment systems by
the commercial banks. In assessing these objectives, a descriptive research desing was
adopted in which a census of 43 banks in Kenya were studied. Questionnaires were used
to collect data from the head of payments for each of the banks. The collected data was
then coded and inputted on SPSS for descriptive and inferential statistical analyses. The
findings revealed that Kenyan commercial banks have adopted a range of electronic
payment methods such as ATMs, electronic fund transfers, bulk cash deposit machines,
and mobile banking applications. Of these technologies, electronic fund transfer payment
methods were found to be the most widely adopted. Additionally, the study found that
information security, infrastructure, technology, regulatory framework, and top
management support positively influence the uptake of electronic payment technologies
by Kenyan commercial banks. Moreover, the study found that adoption of these
technologies face the following challenges; inadequate legal and regulatory frameworks,
outdated technologies, poor infrastructure, connectivity issues, poor technologies,
inefficient customer care services, time consuming technologies, and poor infrastructure
associated with accessibility, connectivity, and usage. Therefore, in order to improve the
uptake of electronic payment systems in Kenya, these challenges need to be addressed.
As such it is recommended that the government should formulate and enforce regulations
that provide conducive legal and regulatory frameworks for the commercial banks.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
The following license files are associated with this item: