Determinants of m-pesa paybill adoption among safaricom m-pesa customers in migori town, Kenya

Abstract

The study sought to investigate the determinants of M-Pesa pay bill adoption in Migori Town. The research objectives were to investigate the effect of literacy level on M-Pesa pay bill adoption, the effect of customer awareness on M-Pesa pay bill and the effect of perceived security on M-Pesa pays bill adoption. It was expected that the adoption of M-Pesa pay bill would reduce the institutions overhead cost, queue and reduce time wastage used while travelling to the institutions, though the observation reveals that majority still prefer paying bills directly over the counter. The specific objectives include; establishing the relationship between the literacy level, awareness level and perceived security and M-Pesa pay bill adoption in Migori Town. Explanatory design was appropriate as it allowed the researcher to collect data from respondents and make inferences from the data. Data was analyzed using Multi-Regression tests generated from SPSS version 23. From the study findings, literacy level had a negative effect on M-Pesa pay bill adoption with coeffienct of - 0.268 and p-value of 0.00, while customer awareness had positive effect on M-Pesa pay bill adoption with beta coeffiecient of 0.278 p-value of 0.00. However perceived security had no significantly effect on M-Pesa pay bill adoption with p-value more than 0.05. It is important for safaricom to improve on the M-Pesa pay bill user interface. Customers should understand the risk areas and the precautions set by the institutions to protect the users.