Only 37% of businesses in Ghana currently utilize digital payment methods, with the agricultural sector exhibiting the lowest adoption rates.
This information is derived from a recent report on the Adoption of Digital Financial Services by Business Firms in Ghana, which was collaboratively published by Retail Finance Distribution (ReFinD) and the Institute for Statistical Social and Economic Research (ISSER), with assistance from the Ghana Statistical Service.
The report highlights that the adoption and use of digital payments are highly inconsistent, primarily concentrated in Greater Accra and regional capitals. It also indicates that female managers significantly enhance both revenue and the adoption and usage of merchant accounts.
Key obstacles to the adoption and utilization of digital payments include gaps in knowledge, concerns about fraud, and perceived risks regarding uncertain returns.
There are notable disparities in the adoption and usage of digital payments across different firm sizes, sectors, levels of formality, and geographical locations. To bridge these gaps, the report suggests that policymakers should consider implementing targeted interventions.
These interventions could involve improving firms’ understanding of the benefits associated with adoption and usage, bolstering fraud prevention measures, and establishing incentive structures tailored to specific business digital payment systems. Strengthening cybersecurity is essential for fostering trust.
In his remarks on the report, Prof. Peter Quartey, Director of ISSER, stated, “There are several factors contributing to the low adoption rate. One is the uncertainty within the business environment, along with cost considerations, taxation, and other constraints. However, overall, leveraging digital financial inclusion is one of the most effective ways to integrate the unbanked into financial services.”
During the keynote address delivered on behalf of the First Deputy Governor of the Bank of Ghana, Kwame Oppong, Director of Fintech and Innovation, underscored that the findings will be instrumental in shaping policies designed to enhance financial inclusion.
Challenges in financial inclusion continue to exist, despite the advancements achieved. This is evidenced by the increasing gender gap and issues related to digital inclusion, making the report generated from this initiative particularly relevant.
“I am confident that the insights gained from this research will guide policy decisions and enhance the effectiveness of our strategies for financial inclusion,” he stated.
