Adoption Rates and Performance Benefits of Mobile Payment Systems Among Small Businesses in Nairobi, Kenya: An Ethnographic Study

Mobile payment systems have become increasingly prevalent in urban areas of Kenya, particularly among small businesses seeking more efficient and secure transaction methods. The research employs participant observation and semi-structured interviews with a purposive sample of small business owners, focusing on understanding their experiences and challenges related to mobile payment technology adoption. Mobile payment system adoption rates among small businesses in Nairobi were found to be higher than expected, with over 60% of respondents using these systems for daily transactions. This significant uptake was driven by the perceived convenience and cost savings associated with reduced cash handling risks. Small business owners in Nairobi perceive mobile payments as a viable alternative to traditional payment methods, citing factors such as lower transaction fees, improved financial management, and enhanced customer satisfaction as key benefits. Policy makers should consider supporting the development of more robust mobile payment infrastructure to further facilitate adoption among small businesses, while also offering training programmes to address potential technical barriers.