An Implementation Model For M-payment Adoption: A Case Of Lipa Na Mpesa By The Mitumba Traders In Gikomba Market.

Abstract

Mobile money in Kenya is already well established contributing to the growth of the economy. Despite these remarkable achievements in mobile telephon, Lipa na Mpesa has not been widely adopted. This study therefore sought to investigate factors affecting usage of Lipa na Mpesa payment system among middle level business, a case study of Mitumba traders in Gikomba market with an aim of proposing a framework for successful adoption of Lipa na Mpesa by SME in Kenya. Specifically, the study explored various theoretical models (Technology Acceptance Model as well as Innovation Diffusion Model) in an effort to identify a framework and validating the proposed framework for successful adoption of electronic mobile money, Lipa na Mpesa, in Kenya. The study considered the following study variables; individual factors, business factors and technological factors. The Cross Sectional data collected in the study area was analysed using Statistical Package for Social Sciences (SPSS) and descriptive statistics like relative frequencies, mean scores and standard deviation. The variables were analysed using Linear Regression Model and the results shows a variation of 73.1% on the Lipa na Mpesa implementation due to changes in the independent variables. A strong positive relationship of 87.4% between the study variables was revealed. At 95 percent confidence interval, individual factors, business factors and technological factors were both found to be positive and statistically significantly relating to the adoption and use of Lipa na Mpesa services. However, individual factors were found to be more significant (p=0.002), followed by technological factors (p=0.017) and business factors which were fairly significant (p=0.049).