What are the perceived barriers to the adoption of digital payments in Tanzania?
Policymakers and other players in the financial ecosystem struggle to address most of the challenges barricading the widespread adoption of digital payments in many developing countries, such as Tanzania. Customers can contribute significantly to the increased adoption rate if their perception of th...
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2025-12-01
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| Series: | Cogent Business & Management |
| Subjects: | |
| Online Access: | https://www.tandfonline.com/doi/10.1080/23311975.2025.2544982 |
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| Summary: | Policymakers and other players in the financial ecosystem struggle to address most of the challenges barricading the widespread adoption of digital payments in many developing countries, such as Tanzania. Customers can contribute significantly to the increased adoption rate if their perception of these challenges is integrated into devising and implementing feasible digital payment mechanisms. However, little is known about how they perceive the barriers to adoption. This study seeks to analyse the barriers to the adoption of digital payments in Tanzania, as perceived by customers. We collected data from 261 members of the consumer consultative councils that act as statutory bodies representing the interests of consumers in various sectors of Tanzania. A hierarchical multiple regression was employed to analyse these responses, where the major categories of adoption barriers such as perceived security, safety, and privacy challenges, perceived barriers associated with connectivity and literacy, and perceived barriers associated with the cost of digital payments; were revealed. This study also reveals that little policy development initiatives, little collaboration among digital payment stakeholders, and little effort made to improve the regulatory framework, make the possibility for cash to continue accounting for a significant proportion of daily transactions in Tanzania. This study argues that the government, in collaboration with other key players and practitioners from various industries, needs to promote digital payment solutions that reflect the perceptions of key adoption influencers, that is, the customers. |
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| ISSN: | 2331-1975 |