Perceived Benefits of Digital Payments in Tanzania

Abstract

In Tanzania, efforts to influence the adoption of digital payments are enormous. However, there is still low adoption rate in Tanzania. This study argues that the low adoption rate is mainly driven by the fact that, to a great extent, these efforts do not accommodate the perception of customers on the potential benefits of digital payments. This study sought to analyse the consumer perception on potential benefits of digital payments in Tanzania. We employed a hierarchical multiple regression in analysing data collected from 261 respondents from the consumer consultative councils in Tanzania. We find that the major categories of perceived benefits of adopting digital payments in Tanzania are perceived positive customer experience, perceived enhanced security and privacy, and perceived low costs associated with adopting digital payments. We also find that the addition of consumer perception on sufficient policies, forged collaborations, and an effective regulatory framework, improves the prediction of readiness to rely heavily on digital payments than cash, over and above other revealed benefits. The policymakers and relevant practitioners need to cooperate in designing and implementing workable approaches that reflect the interests of the stakeholders for promoting the widespread adoption of digital payments in Tanzania.