The impact of e-money on business performance in Kenya: A case study of Narok Town

Abstract

As technology advances it is turning the world into a paperless world where everything can be accessed digitally. This is not exceptional for the business world; E-commerce has been there and for a long time proved that the exchange of goods and services need not be done in a physical market but can instead be done in form of information in the internet. Today technology is almost eliminating cash money and money can now be carried in a chip or in an electronic device e.g. a computer or a mobile phone. Electronic money is simply a digital equivalent of cash that is stored in an electronic device. To the customer it enables them to pay instantly and acquire goods at a very cheap cost .Efficiency, cheap transactions and accessibility are the main drivers to the increased use of e-money. This has led to an enlargement of new business opportunities and an expansion of economic activities on the internet. This paper provides a background material of information about the evolution of e-money and how it came to use in business, its advantages and the associated risks. It was guided by objectives; to find out whether businesses in Narok town have embraced e-money, to find out the performance benefits of using e-money and the risks associated with it if any, to establish the impact e-money on business performance. This study used simple random sampling to select a target population of 40 firms. It used questionnaires to collect primary data and an observation list to collect secondary. This data was analyzed and presented using tables, graphs and pie charts. The researcher found out that indeed electronic money have both positive impacts e.g. increased profits, sales, lending, it is cost efficient and opens new opportunities, and negative impact e.g. theft and fraudulent transactions resulting to loss. This research paper also provides recommendations for these risks associated with electronic money that is, the business owners should install systems and evaluate them regularly to avoid such losses