Mobile Phone as an Electronic Wallet: A Case Study of Kenya

Abstract

The Kenyan economy has many electronic and non-electronic cards that are used for various transactions ill various sectors of the economy. Kenya has credit cards, debit cards, SIM cards, smart cards, loyalty cards, calling cards and national/staff identification cards (Discussed in Chapter 4). This paper assessed whether Kenya is ready to adopt the use of a mobile phone as an electronic wallet i.e. a single card scheme integrated into mobile phone using Radio Frequency Identification technology (RFID) and third generation (3G) data network to retrieve and transmit stored details. The paper measured whether employed Kenyans perceive technology to be useful and easy to use; and whether there are any current cultural practices, policy and technology that can support or hinder the adoption of this flew technology. The paper combines the Technology Acceptance Model (TAM) by David et al. (1989); one of the more widely accepted theoretical frameworks that has been used to measure technology adoption; with Culture-Policy-Technology (CPT) theoretical frameworks developed by Akhilesh Baja} and Lori NK Leonard from the University of Tulsa, to assess how ready Kenya is to adopt the use of a mobile phone as an electronic wallet. Overall, Kenya has a lot to do if this technology is to be adopted. The research established that • Majority of Employed Kenyans walk around with more than one electronic or non electronic card ill their wallets - the research established that most employed Kenyans are uncomfortable carrying many cards as [his makes their wallets disorganized, raises levels of insecurity and on losing the wallet, obtaining a replacement of the cards is never an easy process. • Kenyans don't perceive technology to be useful and easy to use - This paper recommended that introduction of technology oriented subjects in school i.e. computer studies and grass root effort to educate people on specific benefits of mobile commerce and technology could change the Kenyans perception towards technology. VI Mobile Phone as an Electronic Wallet: A Case Study of Kenya • Kenyans lack trust towards the Economic and Financial institutions (EFI) - Kenya government and Kenyans in general have a key role to play to streamline themselves and EFI by effectively using the anti corruption bodies and policies to eradicate corruption in Kenya. By offering courses on the importance of trust and the negative effects of corruption could boost trust and fight corruption. Kenya also has to pass and strictly enforce consumer protection laws; pass strong legislations against corruption and visibly enforce sentencing for guilty parties. • The RFID technology and Third Generation data network are available in Kenya but costly - In most developed economies i.e. Japan, they have service providers who install the systems and derive revenue from transactions on use of the system. • The current policies and legal frameworks don't support the adoption of this new technology ~ at the moment Kenya has the Kenya Communication Act 1998, which doesn 't support the adoption of this new technology. The proposed Kenya ICT bill 2006 covers these gaps. Once tabled in parliament and adopted, it will lay a good policy and legal foundation for Kenya to adopt this new technology.