Cashless Payment Systems and Operational Efficiency of Public Transport in Nairobi.

Abstract

The study explores the cashless payment systems and operational efficiency of public transport in Nairobi. More specifically the study sought to achieve three main objectives. First, was to establish the cashless payments systems commonly used by public transport operators in Nairobi, secondly was to determine the enablers of implementation of cashless payments system Kenyan Matatu industry and thirdly was to determine the benefits of cashless payment systems to passengers and public service vehicles operators in Kenya. To achieve these objectives, the study collected primary data from the 100 sampled Saccos using the administered questionnaires. Stratified simple random sampling was used to select the sample size from the sampling frame of the registered public service vehicles operating within Nairobi City. Collected data was analysed using SPSS software. The study findings were that the cashless payment systems that have existed in Nairobi in the past are beba pay, jinice, abiria card and Mpesa platforms. However, none of these platforms is currently being used by the public services vehicles in Nairobi. Regarding the enablers of implementation of cashless payment system in the public transport industry, the study identifies the key enablers to be stakeholder involvement, card interoperability across different payment platforms customer sensitization and enhancing security against any possible technological threats in the system. Lastly on the benefits of the cashless payment systems the study findings conclude that the use of the cashless payment enhances efficiency by reducing the time taken in collecting fare from passengers and looking for change, minimize the risk of cash theft by the service crew and enables the passengers in planning for their transport expenditures.