A recent report on digital payments says Ghanaian enterprises are alarmingly low on the adoption of digital technologies, standing at a mere 37 per cent.
The study by the Retail Finance Distribution and Institute of Statistical, Social and Economic Research (ISSER) reveals that less than 37 per cent of businesses in Ghana utilize or accept digital payments, with the agricultural sector exhibiting the lowest rate of adoption.
The findings were presented at an event held in the conference room of the Institute of Statistical, Social and Economic Research (ISSER) of the University of Ghana.
The report underscores a stark disparity in digital adoption across sectors, with the service industry leading while agriculture lags considerably.
The research indicates that digital uptake is primarily concentrated among formal, larger firms that generate higher revenues.
It establishes a positive correlation between the adoption and use of digital payments and business growth, particularly when facilitated through merchant accounts.
However, it also notes a prevailing trend where personal mobile money accounts are more commonly used for business transactions than dedicated merchant accounts, even among larger and formal enterprises.
The report identifies several key factors, contributing to the sluggish adoption of digital payments among Ghanaian businesses.
These include a lack of understanding regarding the functionality of digital payment systems, anxieties surrounding potential fraud, and a lack of clarity on the potential returns and benefits associated with their implementation.
The report urged policymakers to implement targeted interventions to promote digital payments amongst Ghanaian enterprises.
“These includes enhancing firms’ understanding of adoption and usage benefits, strengthening fraud prevention, and creating incentive structures for business-specific digital payments systems. Enhanced cybersecurity is crucial for building trust, “ the report said.
It also called for policies that could also promote credit access and digital financial tool integration in women-focused business support programmes are need to level the playing field.
The report also called for collaboration between financial institutions, telecom operators, and government agencies.
These collaborations, the report noted, could help design region and district-specific solutions that encourage digital payments adoption and usage.
GNA
