Effects of Cybersecurity Strategies on Quality of Service: A Case of Payment Service Providers in Kenya

Abstract

The general objective of the study was to examine the effect of cybersecurity strategies on quality of service of Payment Service Providers (PSPs) authorized by the Central Bank of Kenya (CBK) to provide a platform that facilitated the processing of payments on behalf of merchants. The specific objectives were to examine the effect of cybersecurity controls, cybersecurity readiness, and cybersecurity hygiene on the quality of service of PSPs authorized by the CBK to provide a platform that facilitated the processing of payments on behalf of merchants. The study used a correlational research design with a sample size of 10 authorized PSPs in Kenya. The unit of observation was cybersecurity managers, cybersecurity engineers & analysts, IT managers, IT engineers & analysts, service operations managers and service operations engineers & analysts. Data was collected through semi-structured questionnaires, analysed qualitatively using content analysis, and quantitatively using descriptive and inferential statistics, including a multiple linear regression model to assess the relationship between independent and dependent variables. The study reveals that there is a strong positive correlation between cybersecurity controls and quality of service in PSPs authorized by the CBK, with a correlation coefficient of r=.568 and p=.000. The regression analysis shows that enhancing cybersecurity controls has a significant positive impact on service quality, with a coefficient of β=.253 and p=0.005. Thus, a unitary increase in cybersecurity controls would increase the quality of service of PSPs authorized by the CBK to provide a platform that facilitates the processing of payments on behalf of merchants by 0.253 units when other factors are held constant. Similarly, there is a strong positive correlation between cybersecurity readiness and quality of service, indicated by a correlation coefficient of r=.697 and p=.000. The regression coefficient of β=.512 and p=0.000 suggests that investing in cybersecurity readiness can significantly improve service quality. Therefore, a unitary increase in cybersecurity readiness would increase the quality of service of PSPs authorized by the CBK to provide a platform that facilitates the processing of payments on behalf of merchants by 0.512 units when other factors are held constant. Additionally, there is a significant positive association between cybersecurity hygiene and quality of service, with a correlation coefficient of r=.544 and p=.000. The regression analysis reveals a coefficient of β=.288 and p=0.000, emphasizing the importance of maintaining robust cybersecurity hygiene practices to ensure high-quality service. Hence, a unitary increase in cybersecurity hygiene would increase the quality of service of PSPs authorized by the CBK to provide a platform that facilitates the processing of payments on behalf of merchants by 0.288 units when other factors are held constant. Based on the results, it can be concluded that cybersecurity controls, readiness, and hygiene play crucial roles in ensuring the quality of service for PSPs authorized by the CBK. The strong positive correlations and significant regression results underline the importance of investing in these cybersecurity aspects to enhance service quality. As the digital payment landscape continues to evolve, it is imperative for PSPs to prioritize and maintain robust cybersecurity practices to ensure a secure and reliable platform that meets customer expectations and fosters trust in the financial ecosystem. To achieve this, Payment Service Providers should prioritize robust cybersecurity controls and comprehensive cybersecurity readiness plans and maintain good cybersecurity hygiene practices. Furthermore, developing and updating incident response plans and fostering employee awareness of cybersecurity best practices will help PSPs respond effectively to security breaches. Lastly, implementing regular software updates, strong security policies, and continuous employee training will ensure a high level of cybersecurity hygiene, ultimately leading to better customer trust and competitiveness in the payment processing industry.