Mutai Nelly Chelangat|Symon Kiprop|Joseph Kipkirui Mutai
Effects of Payment Cards on Financial Performance of Commercial Banks in Kenya
Egerton University
since 2009 kenyas financial system experienced remarkable financial innovation possible implications financial performance commercial banks kenya increase financial literacy kenya increased use payment cards also infrastructural expansion commercial banks led increase number points sales however later adverse effect financial crisis since 2008 banks forced close branches points sales cost cutting measure became victims mergers acquisitions led decrease number payment card transactions though atms contributed lot improving efficiency banking customers high fixed maintenance cost study sort establish relationship payment cards financial performance commercial banks kenya crosssectional descriptive survey research design used population study 42 commercial banks licensed central bank kenya 2011 2020 study used secondary data obtained 42 banks annual financial reports ten years time period 2011 2020 study guided coase theorem constraint induced financial innovation theory circumvention innovation theory innovation diffusion theory data analysed using descriptive statistics panel model results indicate debit card atm positive significant relationship roa 5 significance level credit cards atm pos machines also positively related roa statistically significant prepaid cards atm negatively related roa nonsignificant study recommends commercial banks continue investing innovation delivery channels able control costs much better compared investment physical branches findings contributed new knowledge literature theory