ISSN: 2222-6990
Open access
Along with popularity of electronic commerce and online purchasing, cashless payment systems have been developed and expected to the main payment means of e-commerce globally. Kenya is still at the inception stage with 27% of the consumer payments being cashless. Despite the benefits associated with electronic money payments, Supermarkets in Nairobi County have generally been slow in adopting the use of cashless payments. Thus, this research intended to investigate the effects of cashless payments on financial performance of supermarkets in Nairobi County. Of specific focus was how financial accessibility, financial innovation, cash handling practices and transaction costs influence financial performance of supermarket in Nairobi County. This study examines the recent trends of effects of cashless payments on the financial performance of supermarkets in Nairobi County for the period January 2015 to December 2017. Taking a descriptive research design, the study accomplishes the objectives by focusing on the finance managers of the supermarkets in Nairobi County. The target population comprised of 147 supermarket branches in Nairobi County. Systematic random sampling was used to calculate a sample size of 66 respondents. Linear regression analysis was used to test the relationship between the independent and the dependent variables. The results of the analysis were presented in form of tables, graphs and charts. From the findings the study concluded that financial accessibility, financial innovations, cash handling practises and transactions costs significantly influences financial performance. From the conclusions the study recommended that there is need for supermarkets in Nairobi County to improve financial accessibility to the various payments platforms and accept the different payment innovations in the market. The study further recommended that supermarkets should reduce transaction costs of payment channels to increase adoption. This will have a positive impact on the financial performance of supermarkets in Nairobi County.
Agwu, E. (2012). A Qualitative Study of the Problems and Prospects of Online Banking in Developing Economies–Case of Nigeria. Available at SSRN 3112130.
Akhisar, ?., Tunay, K. B., & Tunay, N. (2015). The effects of innovations on bank performance: The case of electronic banking services. Procedia-Social and Behavioral Sciences, 195, 369-375.
Aranyossy, M. (2018). Citizen adoption of e-government services – Evidence from Hungary. Digital Transformation – Meeting the challenges. doi:10.18690/978-961-286-170-4.3
Balaji, K. C., & Balaji, K. (2017). A study on demonetization and its impact on cashless transactions. International Journal of Advanced Scientific Research & Development, 4(3), 58-64.
Bátiz-Lazo, B. (2018). Epilogue: The Cashless Economy and the ATM. Oxford Scholarship Online. doi:10.1093/oso/9780198782810.003.0010
Bertone?che, M., & Knight, R. (2003). Financial performance. Oxford: Butterworth-Heinemann.
Bilgihan, A. (2016). Gen Y customer loyalty in online shopping: An integrated model of trust, user experience and branding. Computers in Human Behavior, 61, 103-113.
Central Bank of Kenya. (2017). Publications. Nairobi: Government Press.
https://www.centralbank.go.ke/publications
Chalomba, N., & Gujral, M. (2016, July). Consumer Perceptions and Adoption of Mobile Payments in Johannesburg, South Africa: A Case of University Students. In 2016 Global Marketing Conference at Hong Kong (pp. 1310-1327).
Cocosila, M., & Trabelsi, H. (2016). An integrated value-risk investigation of contactless mobile payments adoption. Electronic Commerce Research and Applications, 20, 159-170.
Singh, R. & Roy, S. (2015). Asian Journal of Research in Business Economics and Management, Vol. 5, No. 1, pp. 12-18
Gerpott, T. (2018). Experienced speeds of fixed Internet connections as drivers of customer bonds with their provider–An empirical study of consumers in Germany. Management Science Letters, 8(12), 1239-1258.
Han, S., Keys, B., & Li, G. (2015). Information, Contract Design, and Unsecured Credit Supply: Evidence from Credit Card Mailings. Finance and Economics Discussion Series,2015(103), 1-54. doi:10.17016/feds.2015.103
Hasan, I., De Renzis, T., &Schmiedel, H. (2015). Retail Payments and Economic Growth. SSRN Electronic Journal. doi:10.2139/ssrn.2100651
Hastomo, A. D., & Aras, M. (2018). Influence of Cashless Society Socialization toward Trust Transaction Culture in Jakarta, Indonesia. Humaniora, 9(1), 1-13.
Hennart, J. F. (1993). Explaining the swollen middle: Why most transactions are a mix of “market” and “hierarchy”. Organization science, 4(4), 529-547.
Ighobor, K. (2017). Africa’s quest for a cashless economy gains momentum. Africa Renewal, 31(1), 16-17.
Jain, P. (2017). Cashless system of colleges in India. International journal of social sciences and humanities, 1(3), 1-7.
Jason, L., & Glenwick, D. (Eds.). (2016). Handbook of methodological approaches to community-based research: Qualitative, quantitative, and mixed methods. Oxford university press.
Juariah, R. (2015, May). Innovation Green Banking in Banking Service (Electronic Banking) to Improve Quality. In International Conference on Economics and Banking (iceb-15). Atlantis Press.
Kosse, A., Chen, H., Felt, M. H., Jiongo, V. D., Nield, K., & Welte, A. (2017). The costs of point-of-sale payments in canada (No. 2017-4). Bank of Canada Staff Discussion Paper.
Kumar, L. (2016). Can Mobile Money Replace Cash in India?. In The Book of Payments (pp. 297-310). Palgrave Macmillan, London.
Laudon, K. C., & Laudon, J. P. (2015). Management Information Systems: Managing the Digital Firm Plus MyMISLab with Pearson eText--Access Card Package. Prentice Hall Press.
MacKenzie, D. A. (1996). Knowing machines: Essays on technical change (inside technology). MIT Press.
Mahboub, R. M. (2018). The Impact of Information and Communication Technology Investments on the Performance of Lebanese Banks. European Research Studies Journal, 21(4), 435-458.
Mahran, A. F., & Enaba
In-Text Citation:(Jumba & Wephukhulu, 2019)
To Cite this Article: Jumba, J., & Wephukhulu, J. M. (2019). Effect of Cashless Payments on the Financial Performance of Supermarkets in Nairobi County. International Journal of Academic Research Business and Social Sciences, 9(3), 1372–1397.
Copyright: © 2019 The Author(s)
Published by Human Resource Management Academic Research Society (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode