THE EFFECTS OF PLASTIC MONEY TRANSACTIONS ON FINANCIAL PERFORMANCE OF SAVINGS AND CREDIT CO-OPERATIVE SOCIETIES IN NAIROBI COUNTY, KENYA

Abstract

This study sought to establish the effect of plastic money transactions on the financial performance of savings and credit cooperative organizations in Nairobi County, Kenya. The study variables of the study were mobile money and Visa card. The study reviewed the existing literature on effects of plastic money and financial performance and came up with the research gap. The study adopted a descriptive cross-sectional survey. The study population for this study was 486 employees of 35 Saccos in Nairobi County. Stratified random sampling was used to select 146 respondents. The research used questionnaire as the main data collection instrument. The study carried out a pilot study to pretest and validates the questionnaire. Descriptive statistics mostly frequency distribution tables were used to capture the characteristics of the dependent and independent variables in the study. Inferential statistics that included multiple linear regression and bivariate correlation was used to analyze the relationship between the dependent variable and the independent variables. The study conducted a correlation analysis to establish the strength of the relationship between the independent and the dependent variable. The study found out that mobile money and visa cards had positive relationship with performance of Sacco's. The study concluded that mobile money and visa cards were positively related to performance of Sacco's. The study recommended that the management of Sacco's should encourage their customers to use mobile money because it is very convenient and the customers are able to access the services for 24 hours. Organization would also increase revenue. The management should communicate the importance of visa cards to customers, so that to increase the number of users of visa cards. This would help improve performance of Sacco's.