Abstract
The purpose of the study was to investigate the impact of e-payment system and financial performance of telecommunication companies and the study carried out in MTN Rwanda, MOMO service. E-payment system as independent variable and financial performance as dependent variable. This study has the following specific objectives: To examine the money transfer services on financial performance of MTN Rwanda; to evaluate the financial key performance indicators of MTN Rwanda; to investigate the e-payment services on the financial performance of MTN Rwanda; to assess the role of mobile banking on financial performance of MTN Rwanda between 2016 and 2019; and to establish the relationship between e-payment system and financial performance. The study shows findings shows that 31 (53.4%) of Respondents strongly agreed that sending and receiving money between two subscribers of MOMO service highly affect profitability Ratio of MTN Rwanda. It Indicates that 26 (44.8%) of Respondents strongly agreed that buying airtime with MOMO service affect an increase in Sales volume of MTN Rwanda. It indicates that 27 (46.6%) of Respondents strongly agreed that paying TV with MOMO service positively affect long term investment of MTN Rwanda. It indicates that 32 (55.2%) of Respondents strongly agreed that depositing and withdrawing money on bank account with MOMO service highly affect profitability Ratio. The findings prove that there is a positive correlation between money transfer services and long term investment (p=.774 and sig=.000); between payment and profitability (p=.972 and sig=.000); between mobile banking services and improved sales volume (p=.866and sig=.000); between money transfer services and payment services (p=.785 and sig=.000); between payment service and mobile banking services (p=.781 and sig=.000); long term investment and profitability (p=.986 and sig=.000). Hence, the results indicate that e-payment systems have a positive and significant relationship with financial performance of MTN Rwanda MOMO services. Keywords: E-payment, Money transfer, Mobile banking, Mobile money, financial performance DOI: 10.7176/JESD/11-16-18 Publication date: August 31 st 2020
Highlights
The history of E-payment can be traced back to 1918 the time when currency was first moved in the United States (US) by Federal Reserve Bank with the aid of telegraph
8 (13.8) of Respondents agreed that e-payment system affect an increase of sales volume of MTN Rwanda, 9 (15.5) of Respondents agreed that e-payment system highly affect profitability ratio of MTN Rwanda, 7 (12.1) of Respondents agreed that e-payment system positively affect Long term investment of MTN Rwanda
7(12.1) of Respondents Disagreed that e-payment system affect an increase of sales volume of MTN Rwanda, 8 (13.8) of Respondents Disagreed that e-payment system highly affect profitability ratio of MTN Rwanda, 8 (13.8) of Respondents Disagreed that e-payment system positively affect Long term investment of MTN Rwanda
Summary
The history of E-payment can be traced back to 1918 the time when currency was first moved in the United States (US) by Federal Reserve Bank with the aid of telegraph. The electronic money turned out to be quite popular. This enabled U.S commercial banks and its central treasury came out with an alternative to cheque payment.(Ul et al, 2017). Banks have always sought media through which they would serve their clients more cost-effectively as well as increase the utility of their clientele. Their main concern has been to serve clients more conveniently, and in the process increase profits and competitiveness. The growth in mobile phone ownership raises the potential for mobile money to reach unbanked people, providing them with a more affordable payments system. Mobile money plays a role in e-payment system in Rwanda because is trusted because of its confidentiality, MOMO is easy to use, is fast transfer of money to the receiver, MOMO is convenience, affordability, acceptability and short/simple procedure to register for the service and no account maintenance fee for keeping money in the mobile phone
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