Factors Influencing Use Of Credit Cards In Kenyan Commercial Banks In Nairobi County, Kenya

ABSTRACT

Theuse of credit cards in Kenya has been on the rise in the recent years. This study was carried

out to analyze the use of credit card as a means of settling for goods and services. The study

sought to examine factors affecting the usage of the card specifically cost and income level,

education level of the customers, and culture of the customer. The study targets Kenya

Commercial banks in Nairobi County. The target population was 300 cardholders of Kenya

commercialbanks in Nairobi County. The study was motivated by the increased use of credit

cards in commercial banks in Kenya. The increased number of outlets accepting credit cards in

Kenyahas positively been received by majority of Kenyans. There has also been a campaign to

.shift from hard currency to plastic money for both central bank of Kenya and Kenya credit and

debit card association. This strong campaign has resulted to increased competition between

banks on wooing credit card users. Customers have a grace period of 50 days before settlement

and they are not required to pay 100% of the bills when they fall due. The study intended to

conductan in-depth analysis of using credit card as a means of settlement for goods and services,

the challenges experienced when using a credit card as a means of settlement and how these were

being addressed. Most cardholders are happy with the mode used to payoff their bills with the

bankwhen they were due for payment e.g. by use of cheques. This study is expected to equip

would- be cardholders with basic information about the mode of payment by the use of credit

cards. The study acted a s a guide in legislation as use of credit cards will reduce the cost of

printing currency in circulation since most of the funds will circulate with the banks inform of

paper. The study will also assist future scholars to understand the credit cards as a means of

settlementfor goods and services. The research findings will bridge the gap in knowledge in the

areaof study and inspire a series of researchers to build on the recommendations given after the

research. The general objective of the study is to determine factors influencing the use of credit

cardsas a mean of payment of goods and services. The specific objectives aimed at determining

how cost, income level, education level and culture affect use of credit cards as a mean of

payment of goods and services. The researcher adopted descriptive design. This would help the

researcher establish factors determining the use of credit cards as a mean of payment of goods

and services. Sampling was used to select the respondents to participate in the study. The

researcher will use both primary and secondary source to collect the data. Questionnaires was

usedto collect the primary data. The statistical package for social sciences (SPSS) was used as

an aid to analyze data. Both qualitative and quantitative analysis was used whereby numbers

abouta situation will be analyzed by choosing specific aspects of that situation. The output was

representedusing frequency table and charts based on the research objectives.

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APA

MAY, R (2021). Factors Influencing Use Of Credit Cards In Kenyan Commercial Banks In Nairobi County, Kenya. Afribary. Retrieved from https://afribary.com/works/factors-influencing-use-of-credit-cards-in-kenyan-commercial-banks-in-nairobi-county-kenya

MLA 8th

MAY, ROSEBELLA "Factors Influencing Use Of Credit Cards In Kenyan Commercial Banks In Nairobi County, Kenya" Afribary. Afribary, 01 Jun. 2021, https://afribary.com/works/factors-influencing-use-of-credit-cards-in-kenyan-commercial-banks-in-nairobi-county-kenya. Accessed 30 May. 2024.

MLA7

MAY, ROSEBELLA . "Factors Influencing Use Of Credit Cards In Kenyan Commercial Banks In Nairobi County, Kenya". Afribary, Afribary, 01 Jun. 2021. Web. 30 May. 2024. < https://afribary.com/works/factors-influencing-use-of-credit-cards-in-kenyan-commercial-banks-in-nairobi-county-kenya >.

Chicago

MAY, ROSEBELLA . "Factors Influencing Use Of Credit Cards In Kenyan Commercial Banks In Nairobi County, Kenya" Afribary (2021). Accessed May 30, 2024. https://afribary.com/works/factors-influencing-use-of-credit-cards-in-kenyan-commercial-banks-in-nairobi-county-kenya