An Empirical Investigation on the Relationship between Technological Infrastructure and Government Regulations on Effective Operations of M-Payment Systems in Kenya

Abstract

Mobile phones have become potential and efficient way to communicate globally. Since its inception in Kenya, the Safaricom M-Payment service has gained a lot of popularity and has spread throughout the country. This wide spread has been made possible manly by M-Pesa agents who have distributed the service countrywide. Despite their enormous role in ensuring that the M-Pesa service becomes a success, the agents are faced by various constraints that act as impediment to their smooth and effective operations. This study sought to investigate the effect of government regulatory requirements and technological infrastructure based factors on effective operations of M-Payment agents in Kenya. Through Multiple-linear regression analysis, the study established that the operations of Safaricom M-Payment agents were significantly affected by the state of