E-Payment System and Financial Performance of Telecom Companies in Rwanda: Case Study of MTN Rwanda MOMO Service

Abstract

The purpose of the study was to investigate the impact of e-payment system and financial performance of telecommunication companies and the study carried out in MTN Rwanda, MOMO service. E-payment system as independent variable and financial performance as dependent variable. This study has the following specific objectives: To examine the money transfer services on financial performance of MTN Rwanda; to evaluate the financial key performance indicators of MTN Rwanda; to investigate the e-payment services on the financial performance of MTN Rwanda; to assess the role of mobile banking on financial performance of MTN Rwanda between 2016 and 2019; and to establish the relationship between e-payment system and financial performance. The study shows findings shows that 31 (53.4%) of Respondents strongly agreed that sending and receiving money between two subscribers of MOMO service highly affect profitability Ratio of MTN Rwanda. It Indicates that 26 (44.8%) of Respondents strongly agreed that buying airtime with MOMO service affect an increase in Sales volume of MTN Rwanda. It indicates that 27 (46.6%) of Respondents strongly agreed that paying TV with MOMO service positively affect long term investment of MTN Rwanda. It indicates that 32 (55.2%) of Respondents strongly agreed that depositing and withdrawing money on bank account with MOMO service highly affect profitability Ratio. The findings prove that there is a positive correlation between money transfer services and long term investment (p=.774 and sig=.000); between payment and profitability (p=.972 and sig=.000); between mobile banking services and improved sales volume (p=.866and sig=.000); between money transfer services and payment services (p=.785 and sig=.000); between payment service and mobile banking services (p=.781 and sig=.000); long term investment and profitability (p=.986 and sig=.000). Hence, the results indicate that e-payment systems have a positive and significant relationship with financial performance of MTN Rwanda MOMO services.