Factors influencing the use of mobile banking in Kenya: a case of M-Pesa by Safaricom

Abstract

This study aimed at ascertaining factors influencing the use of mobile banking in Kenya. Specifically the study sought; to assess the effect of five facets of perceived risk (performance risk, security/privacy risk, time risk, social risk and financial risk) with regards to the use of mobile banking in Kenya; to reveal the effect of consumer trust on the use of mobile banking in Kenya; to assess the effect of banking perceived cost on the use and adoption of mobile banking in Kenya and to assess the effect of perceived usefulness and perceived ease of use with regards to use of mobile banking in Kenya.

The study adopted a descriptive survey design. The study population comprised all M-PESA users in Nairobi. A sample of 80 M-PESA users was randomly selected for the study. Purposive sampling was used to select Nairobi County as the study site. The study relied on data collected through a questionnaire structured to meet the objectives of the study. The process of data analysis involved data clean up and explanation. Responses in the questionnaires were tabulated, coded and processed by use of a computer Statistical Package for Social Science (SPSS) version 17.0 programme to analyze the data.

From the study findings it can be concluded that cost, consumer trust, ease of usage, perceived risk and perceived usefulness are factors influencing the use of mobile banking in Kenya with the case of M-PESA. The study further gives recommendations towards factors influencing the use of mobile banking in Kenya.