Perceived Financial Value and the Adoption of the Cashless Payment System in the Matatu Transport Sector in Nairobi County, Kenya

Abstract

Cashless payment systems have emerged as a transformative force in the global financial landscape, offering convenience and efficiency in transactions. Despite their widespread development, the adoption of these systems has been uneven, with only a select number of companies in specific countries making notable progress. This research investigated the correlation between perceived financial value and the adoption of cashless payment systems in Nairobi's Matatu sector. The central question was how perceived financial value influences this adoption. This research was grounded on institutional theory, the study used an explanatory research design with a target population of 1,176 Matatu SACCO managers and staff, from which a sample of 289 was selected using stratified and simple random sampling. Data was collected via a questionnaire, with validity assessed through Pearson Moment Correlation and reliability through the test-retest method. Quantitative analysis was conducted using SPSS. The findings revealed a significant impact of perceived financial value on cashless payment adoption (β=0.534, t=10.744, p<0.05) and a 67.9% positive correlation. The study concluded that a suitable legal and institutional framework is needed, requiring collaboration between the private and public sectors to support technological adoption among Matatu operators in Nairobi. In light of the study's findings, the researchers recommended that the lack of a suitable legal and institutional framework for e-payments necessitates a joint effort from both the private and public sectors to establish the necessary legal and institutional structures, thereby fostering an environment conducive to technology integration among Matatu operators in Nairobi and beyond.