Association between plastic cards and mobile banking transactions in Kenya

Abstract

Mobile banking has emerged as most popular mode of electronic banking in Kenya and people prefer to use it due to ease and convenience. Though mobile transactions are preferred by a large section of people, plastic cards are still widely used and account for a significant portion of banking transactions. This paper explores the evolution of mobile banking despite the existence of different e-banking services and the reasons for the quick adoption of mobile banking by Kenyan society. The paper also analyzes whether there is any association between plastic cards and mobile banking transactions in the country. The log-log regression technique has been used to establish a relationship between plastic cards and mobile transactions and, on the basis of results, the study recommends that commercial banks should try to popularize mobile banking among existing plastic card users. This move will not only give competitive advantage to banks but will also promote higher penetration on account of its easiness to use and quick acceptability among new users. Moreover, as there is a dearth of studies that associate mobile banking and plastic cards in Kenya, this work will add to the existing body of knowledge in the literature.