Factors that Determine Monthly Revenue Returns from Mobile Payments in Kenya

This study examined factors that determine revenue collected from mobile payments in Kenya in terms of their e?ects on monthly revenue returns. Monthly data from March, 2007 to June, 2013 was analyzed. ARIMA diagnostic test which involved standardized residual and Ljung-Box test were performed to identify the correlation between each independent variable namely, Exchange rate of Kshs/USD, Number of customers, number of agents and the number of transaction against the value of transaction as the response variable. The model was used to quantify the correlation between each independent variable after validation process by use of Ljung-Box test, P-values, AIC and BIC and graphical performances which include ACF and PACF plots of residuals and significant variable identified using p value at 95% confidence interval were number of transaction was observed as the factor that significantly determines monthly revenue returns from mobile services operated in the country.