What would it take for more Ghanaians to adopt mobile payment systems?

The introduction of information and communication technologies has enabled consumers to pay for products and services both online and offline, using their mobile phones.

Transactions made over wired and wireless data networks provide consumers with convenient access to a vast number of products and services.

The introduction of these technologies in Ghana has created a platform for consumers to operate their mobile phones to pay for goods and services. Ghanaians have turned to e-commerce because of the convenience it provides customers in paying for and receiving goods and services.

Unlike developed countries, Ghana does not have a well-developed infrastructure for using e-cards (debit or credit) for business transactions. As a result, consumers and businesses rely heavily on cash. This exposes consumers to risks, including health risks and theft as a result of having to carry physical cash. There is therefore a need to consider other, more secure methods of making and receiving payments. One option is mobile payments.

Mobile payments have been around in developed economies for some time now and are associated with improved business transactions. Consumers can shop online 24/7 from the comfort of their homes or businesses. This has led to an enhance in business transactions.

Recent Accenture study shows that established payments will decline in favor of digital payments in the coming years. The study also predicts significant growth in the operate of retail apps (8%), Apple Pay™/Samsung Pay™ (7%) and PayPal (6%).

According to the report, the reason for the piercing enhance in sales via mobile payments is the rapid growth in the operate of mobile payment technology.

Despite the abundance of literature on mobile payments in developed economies, there has been little empirical research on the operate of mobile payments in developing markets, including Ghana. Again, understanding the intentions of mobile phone users to adopt a mobile payment system in developing economies such as Ghana appears to be meager or non-existent.

In Ghana, mobile money has become one of the most widely used mobile payment methods. Mobile money services have been around for over a decade. However, their operate has grown astronomically over the past few years as more and more consumers operate these services to pay for goods and services. It is estimated that about 38.9% of the population (aged 15 and over) in Ghana had a mobile money account in January 2021.

Our test we tried to close the gap in the literature on mobile payments in developing economies such as Ghana. We developed a model to find the determinants of the intention to adopt a mobile payment system among consumers in Ghana, using three of the most popular theories used to explain online shopping behavior. These are Theory of Reasoned Action ; Technology Acceptance Model; and Theory of planned behavior .

We wanted to find out what factors influence consumers’ choice of mobile payments as a payment option for goods and services in Ghana.

What we found

We found that consumers’ intention to adopt mobile payments was indirectly influenced by other people’s perceptions and operate of the system. That is, when consumers saw celebrities and other social influencers adopting or using the system, they were likely to do the same.

This result is consistent with the claim of some researchers that the intention of consumers to adopt a particular technology depends on two factors. First, the faith and trust that the consumer has in those he admires (reference group). Second, the desire to imitate the actions of the reference group in relation to the product.

We also found a mighty correlation between the perceived usefulness of a product or service and consumers’ attitude and behavioral intention towards adopting mobile payments in Ghana. This implies that consumers’ intention to adopt a mobile payment method is conditioned by consumers’ perception of its usefulness in achieving a desired outcome or result. The desired outcome may be the user’s ability to successfully transact on the platform. Another test came to the same conclusion.

Our study also found that perceived ease of operate had a significant positive effect on attitudes and perceived usefulness. Consumers would therefore adopt a mobile payment method if they perceived the system as effortless to navigate. This result That’s right from a study that found that perceived ease of operate has a mighty positive impact on technology adoption.

Attitudes and perceived security also affect consumers’ behavioral intentions towards adopting a mobile payment system. A 1% enhance in a consumer’s attitude increased their intention to adopt mobile payments by 22.7%. The same percentage of perceived security of a product or service increased the consumer’s intention to adopt mobile payments by 15.8%. Consumers’ lack of confidence in the security and safety of their transactions would have a negative impact on their likely adoption of a mobile payment system.

How to improve mobile payment services

Policymakers and service providers can learn from our findings. Perceived ease of operate is considered to be one of the most vital factors in the adoption of novel technology. Therefore, the platform should be designed in such a way that consumers find it effortless and convenient to operate. When consumers find the novel technology effortless to operate and realize the benefits, they will have no problem switching from established payment mode to mobile payment option.

Perceived security is an vital factor in the acceptance of novel technologies. Implementing appropriate security measures to gain consumer trust in the system and enhance the chances of adopting and using the mobile payment system as a payment method should therefore be a priority.

Finally, the government, businesses and organizations should encourage the acceptance and operate of the mobile payment system to complement existing payment methods and enhance consumer payment behavior. It is also mandatory for service providers and marketers to recognize the influence of cultural values ​​on the intention to adopt the mobile payment system.