Influence of Electronic Payment Systems on Revenue Collection Performance in Trans Nzoia County Government Kenya

Abstract

Trans Nzoia County, like other county governments in Kenya, has consistently failed to collect targeted revenue for the past three financial years, hence the need to evaluate factors affecting revenue collection efficiency. This study aimed to analyze electronic payment systems' influence on revenue collection performance in Trans-Nzoia County, Kenya. The specific objectives were:

• To determine the influence of electronic fund transfer payment systems, To investigate the influence of mobile payment systems,
• To establish the influence of electronic billing machines, and
• To identify the influence of online banking on revenue collection performance in Trans-Nzoia County

Revenue Diversification and Resource Based View Theory guided the study. This study adopted a descriptive survey research design. The study utilized the census technique to come up with a sample size of 57 respondents. A questionnaire was the main tool for data collection. Research experts ensured that the content, especially the questionnaire was relevant and appropriate for the study. The study used Cronbach's alpha coefficient to determine the questionnaire's reliability coefficient. The study findings were that:

• Electronic fund transfer payment systems had a positive and significant effect on revenue collection performance (β=0.170, P = .05),
• Mobile payment systems had a positive and significant effect on revenue collection performance (β=0.263, P = .05),
• Electronic billing machines had a positive and significant effect on revenue collection performance (β=0.231, P = .05), and
• Online banking had a positive and significant effect on revenue collection performance (β=0.213, P = .05)

This study concluded that electronic fund transfer payment systems, mobile payment systems, electronic billing machines, and online banking had a positive significant effect on revenue collection performance. Therefore, the study recommended that management should make more attempts to carry out electronic fund transfer payment systems, mobile payment systems, electronic billing machines, and online banking to enhance revenue collection performance.