Contribution of Mobile Money Payment Services on Profitability among Small and Medium Scale Enterprises in Eldoret Municipality, Kenya

Joan Chirchir, Robert Silikhe Simiyu


The purpose of the study was to establish the contribution of mobile money payment services on profitability of SMEs in Eldoret Municipality. This was necessitated by the fact that mobile money payment service is driven by the need to have an easy and quick way of paying bills and avoiding long queues. The theoretical foundation of the study was based on the Technology Acceptance Model and employed descriptive survey research design to target users and 58 SME managers. Questionnaires were used to collect primary data. To establish reliability of research instruments, the Cronbach’s coefficient alpha was used whose figure stood at 0.712. Data was analyzed using descriptive and inferential statistics and presented using tables. The results show that: Accesibility (β=.393, t=5.968, p<0.000), convenience (β=.193, t=2.593, p<0.004), security, (β=.324, t=4.383, p<0.000), and flexibility, (β=.352, t=5.129, p<0.000), had a significant influence on SME profitability. The study therefore recommends: SME management should embark on a proactive and robust marketing plan in conjunction with mobile money payment service providers to create awareness of the benefits of the program. The m-banking service providers should embark on customer education on the usefulness of integrating other m-banking options like saving, credit/debit alerts, bill payments and financial services like share trading. They, in conjunction with CCK, should urgently endeavor to make mobile money payment service more secure to alleviate customers’ fears and make mobile money payment service more effective. The m-banking service providers should further introduce user friendly interfaces and simple guidelines that would enable users to learn more creative uses of mobile money payment service through their phones.

Key words: Mobile Money, Lipa na m-pesa

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