Digital Payments: Impact Factors and Mass Adoption in Sub-Saharan Africa

Technology Innovation Management Review July 2019 (Volume 9, Issue 7)

16 Pages Posted: 12 Jul 2019

See all articles by Leigh Soutter

Leigh Soutter

International School of Management

Kenzie Ferguson

International School of Management (ISM) Paris

Michael Neubert

ISM International School of Management

Date Written: July 2019

Abstract

This study explores impact factors that affect the adoption of digital payment systems in sub-Saharan Africa. In this article, we investigate the impact factors that subject-matter experts consider most important to the success of FinTech payment models. The data and their responses are evaluated through the lens of Christensen’s market-creation theory, which contends that the adoption of market-creating innovations by a mass swathe of heretofore non-consumers “pulls” framework conditions into place, including missing infrastructure and enabling regulation. Then, we compare the findings with the literature and three case studies of mobile money adoption in Kenya, South Africa, and Nigeria. This study addresses a gap in the literature regarding the payment and money transfer segment of FinTech innovations in Africa using a multiple case study methodology. We drew together information from multiple sources, including semi-structured interviews, archival data in the form of industry and regulatory reports, and observational field notes. Our findings suggest that enabling environments (Kenya) do jumpstart adoption and difficult frameworks (Nigeria) do evolve. This study will help FinTech innovators, academics, and policymakers to understand how technology and framework conditions impact payment business models in Africa.

Keywords: FinTech, mobile money, payments, blockchain, sub-Saharan Africa, non-consumption, adoption, finance, consumer behaviour, marketing

JEL Classification: F24, F36, F43, F65, M31, M13

Suggested Citation

Soutter, Leigh and Ferguson, Kenzie and Neubert, Michael, Digital Payments: Impact Factors and Mass Adoption in Sub-Saharan Africa (July 2019). Technology Innovation Management Review July 2019 (Volume 9, Issue 7), Available at SSRN: https://ssrn.com/abstract=3418628

Leigh Soutter

International School of Management ( email )

17, boulevard Raspail
Paris, 75007
France

HOME PAGE: http://www.ism.edu

Kenzie Ferguson

International School of Management (ISM) Paris ( email )

148, rue de Grenelle
Paris, 75007
France

Michael Neubert (Contact Author)

ISM International School of Management ( email )

17, boulevard Raspail
Paris, 75007
France

HOME PAGE: http://ism.edu

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