Abstract:
The era of rapid growth of internet has witnessed exponential growth of electronic payment
systems (EPS), and business transactions are constantly shifting from cash-based to electronic based. However, a prerequisite to adoption of EPS is acceptability and cooperation between
stakeholders including Information Technology (IT) providers, institutions and financial
institutions. The study aimed at determining the factors influencing effective adoption and
implementation of the EPS and assessing the challenges facing the adoption of the electronic
treatment payment at KCMC. The study sought to determine the most preferred mode of
payment, intention to use EPS, factors affecting adoption of EPS and to assess barriers to
adoption of EPS. A cross-sectional study design was used and150 clients were randomly
selected at the outpatient clinics of the KCMC hospital. The data were collected using a
structured questionnaire adopted and adapted from the questionnaire used in the Technology
Acceptance Model (TAM). The majority of the clients (59%) preferred EPS, and about 75%
indicated intention to use EPS. Previous experience with the use of EPS and being banked
were significant factors influencing both preference of EPS and intention to use EPS.
However, middle age and high monthly income were also significant factors that influenced
preference of using EPS. The hypotheses of the TAM were supported by findings of the study,
that is, perceived usefulness (PU) was influenced by perceived ease of use (PEOU); attitude
toward EPS was influenced by both perceived ease of use and perceived usefulness; intention
to use EPS was also influenced by both PU and attitude. Predictors of intention to use were
PEOU and attitude toward EPS. Common barriers that hindered adoption of EPS were
downtime of Internet, poor Internet connectivity and power fluctuations. It is recommended
that in order to hasten adoption of EPS, it is important to address the identified barriers and
also to encourage clients to use banks to keep their money.
