Determinants of mobile payment platforms adoption among micro-retailers in Gikomba Market, Nairobi County: moderating effect of customer attitude, handsets, and demographics

Abstract

The adoption of mobile payment platforms in the retail sector in Kenya is increasingly gaining popularity amidst the ever-growing informal business industry in the country. Mobile money technology has the potential to increase profitability and growth of micro-retailers as it reduces complexities faced in the manual system. However, there is limited information on the awareness, prevalence and perceived convenience or solutions of this system among micro-retailers. This study sought to investigate determinants of mobile payment platforms adoption among micro-retailers in Gikomba market, Nairobi County, with the moderating effect of customer attitude, handsets, and demographics. Specific objectives included: to determine the extent of knowledge of mobile money platforms in the micro-retailers market in Gikomba Market, Nairobi County; identify the limiting factors to the adoption of mobile money platforms among micro retailers, and to investigate potential solutions to address any limitations of adoption of mobile money platforms among micro-retailers in Gikomba Market, Nairobi County. The study employed positivism philosophy and descriptive research design where the study area was Gikomba Market in Kamukunji subcounty, Nairobi County. The study population included 2,700 micro-retailers in Gikomba Market where simple random sampling technique was employed to select a sample size of 348 micro-retailers for the research using Yamane formula. The study utilized primary data collected using a structured questionnaire consisting both open and closed-ended questions. Analysis for quantitative data was done descriptively and inferentially using SPSS while qualitative data was analyzed using thematic content analysis techniques. The findings indicate that ease of use has a positive impact on adoption since user-friendly platforms simplify transactions. High transaction costs are deterrent, especially for micro-retailers with small profit margins, whereas strong security measures boost trust and confidence in the platforms. Moderating factors, such as customer attitudes, demographic characteristics, and availability of advanced handsets significantly, shape the adoption patterns. The study recommends simplified platform interfaces, lower transaction charges, improved security, and tackling demographic barriers through focused outreach and education. These strategies can help in increasing general adoption of mobile payment platforms, hence improving financial inclusion and economic efficiency in the micro-retail market sector.

Key words: Mobile Money, Micro-Retailers, Technologies, Profitability, Micro-Enterprise