Challenges Facing Digital Payment System In Kenya

In today’s competitive world, the great organizations do not have the ability to compete with their global competitors in a flat world. Electronic payments are financial transactions made without the use of paper documents such as debit card, credit card, smart card, e-wallet, e-cash, electronic cheques etc. E-payment systems have received different acceptance level throughout the world; some methods of electronics payments are highly adopted while others are relatively low. This study aimed to identify the issues and challenges of electronic payment systems and offer some solutions to improve the e-payment system quality. The study employed a survey and a desktop research design where stratified sampling, purposive sampling and random sampling was used. The study concludes that the challenges facing performance of the E-payment system in Kenya include; Lack of adequate and reliable infrastructure, inadequate skills due to low levels of computer literacy. Breakdowns and unprecedented delays, bureaucracies with respect to specimen signatures and authentication, Lack of legal and institutional frameworks in governments on E-payment s, Integration issues, Lack of knowledge and awareness on E-payments, Lack of trust in electronic payments. The study recommended that the challenges facing performance of E-payment system in Kenya as is the case of should be addressed by Guarantee a reasonable minimum level of security on the network. Security and privacy dimensions perceived by consumers as well as sellers. Introduce and maintain real-time processing and a combination of features, including integrated systems and gateways, address liquidity issues and minimize delays, while preserving online transaction integrity. Implementation of strong access control measures, regularly monitor and test networks and maintain an information security policy. Continuous training of all employees/users at all levels and enhancement of ICT manuals. The study suggested that there was need for further research on issues of diversity of Information Technology (IT) and training on E-payment usage at all levels in government ministries.