Assessing the factors influencing the use of Mpesa: a case of paratransit service providers in Nairobi
While the use of Mpesa is well established across different service industries 111 Kenya, the preferred mode if payment in the paratransit sector is cash. Smart and integrated ticketing through payments systems such as Mpesa would improve efficiency in the sector. The purpose of this research was to assess the factors influencing the use of Mpesa in the paratransit service industry. The objectives were to assess the technological factors affecting the use of Mpesa by the paratransit service providers; evaluate the effectiveness of the interventions put in place by Safaricom to encourage use of Mpesa; and to determine the impact the paratransit operational environment had on the use of Mpesa. The research focused on paratransit service providers and in particular sought the view of the conductors and office administrators who collect fare from passengers. The study administered questionnaires to respondents and through the use of descriptive statistics, the quantitative data was analysed and presented using mean; standard error and correlation matrix. The key findings were that the Mpesa system is deemed to be useful and easy to use, and that system-up-time levels and support processes for errors and reversals are acceptable. The inference was that an improvement in these technological aspects, would have little to no bearing on the use of Mpesa. On the other hand, interventions by Safaricom had a statistically significance impact on use of Mpesa. These interventions included; 1) Advertising 2) Zero-Rating the cost of Mpesa transactions 3) Introduction of gadgets such as Mpesa Tap to help quicken the speed of collection of fare 4) Lowering commission charges for use of Mpesa 5) Consumer and trade promotions 6) Introduction of the functionality: Mpesa Till which allowed direct payments to the business and 7) Introduction of loan functionality. Finally, environmental factors; including internal and external conditions had a minimal impact on the use of Mpesa by paratransit service providers. The study recommends that mobile money operators such as banks and telecommunication companies seeking to provide or enhance the use of their mobile money payment services in the paratransit sector should deploy a payment system similar to Mpesa and spend more time on interventions that will influence the use of the mobile payment system.