The effect of technology, security and competition on the use of cashless payment systems by merchants in Nairobi county

Abstract

This study sought to establish the effect of technology, security and competition to the use of cashless payment systems by merchants in Nairobi County. The study utilized descriptive research design. The population of this study was merchants in Nairobi County. A semi-structured questionnaire was administered to the persons heading different businesses. Cross tabulation, correlation analysis and multiple regression analysis were used to determine the relative significance of the factors. Analysis of the factors indicated that technology, security issues, and competition had a strong effect on adoption of the cashless payment system. Correlation analysis indicated that the three independent variables (competition, technology and security concerns) had strong correlations with cashless payment system. The study recommends that entrepreneurs all over Kenya understand that the provision of cashless payment system is a unique business opportunity that will build strategies that capture market share.