Effect Of Mobile Phone Financial Services Usage On Business Performance In Rural Areas: A Case of M-pesa Uses in Kisii County.

Abstract

The proliferation of mobile devices and technologies has brought about the introduction of a number of value added services, new technologies involving mobile transactions, while creating important commerce opportunities ranging from mobile banking to mobile payments. This study sought to establish the effect of mobile phone financial services usage on business performance in rural areas of Kisii County. The researcher used 30% of the target population resulting to 327 respondents.  Data was analyzed using percentage mean, minimum, maximum standard deviation, cross tabulations and multi-linear regression. The study found out firms that use mobile phone financial services register higher profits compared to firms that don’t use the mobile phone financial services. Therefore the researcher recommends that Mobile Network Operators to come up with more financial services that will be useful in the rural areas where the banking services are not common and come up with ways to ensure money sent to a wrong number can be retrieved even after the wrong receiver has withdrawn it.

Key words: financial services, mobile phone, M-pesa