| dc.description.abstract | A lot of research has been done on the effect of mobile money on efficiency of and outreach of
micro-finance loans in developing countries. Yet to date, there has been no quantitative test to show the factors
driving the acceptance of mobile- money service, and whether the level of acceptance has any significant effect
on the performance of small and micro-businesses in Kenya. This study investigated factors determining the
acceptance of M-PESA service and the effect of M-pesa Service on small and micro-businesses in Kenya. It
further investigated the challenges facing M-PESA users in Kenya. The study adopted a survey and case study
design on a sample of 1230 small and micro-business operators in Limuru town in Kenya. ANOVA tests was
used to show whether there are differences in average acceptance of the M-PESA service among consumers
who had different views regarding: perceived ease of use, social influence, facilitating conditions and trust i.e
security of the service. Regression analysis was used to show the actual effect of the acceptance of M-Pesa on
small and micro-business performance. Results indicated that, there is a significant difference in acceptance of
M-pesa by traders who had: reported different perceived ease of use, social influence, facilitating conditions by
the provider and security of the system when transferring money. After controlling for the factors that influences
performance, regression results indicated that, acceptance of M-pesa had positive and significant effect on the
performance. Security of money transactions, sending money to the wrong persons and lack of electronic
money float were identified as challenges facing M-PESA service users and agents in Kenya. The knowledge
generated in this study is important to the business community in Kenya and Mobile money service providers in
Kenya. A conclusion can be reached that M-Pesa is an intervention in business world that has contributed to
improvement in performance of small and micro-business in Kenya. The recommendation is that micro-
businesses should embrace mobile banking, for it is an intervention that will go a long way in improving lives
for Kenyans. | en_US |
