Effect of Mobile Payments on the Growth of Plastic Card Payments of Financial Sector in Kenya
This study examined the effect of mobile payment on the growth of plastic card payments of financial sector in Kenya, that is, whether introduction of mobile payment solutions will increase or decrease the usage of plastic card payments of financial sector. The study selected a census research design. The secondary data of financial sector for the period between 2013 and 2016 was used. The data was drawn from the websites of Central Bank of Kenya (CBK) and Communication Authority of Kenya (CA). Descriptive statistics like mean scores, percentages and frequencies for each variable was calculated. The analysis involved multiple regression of variable under study, that is, the growth of plastic card payments represented by rate of growth in the number of plastic cards payments, number of mobile payments, number of point of sales and the amounts of demand deposits in financial institutions. Using OLS regression method, inferential tests including the Pearson Product –Moment Correlation Coefficient and regression analysis was conducted. The result established coefficient of determination of -0.865 (R= -0.865) between mobile payments and plastic card payments of financial sector in Kenya. The study recommends that financial sector should revise its policies to include involvement of telephone service providers during the introduction and development of new alternative banking channels. This will enable financial sector players remain competitive.
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