Post COVID-19 MSME Digital Payment Acceptability and Utilisation: Was the Pandemic a Forced Pilot?

Abstract

Despite the upward surge in access to mobile subscriptions, internet services and digital payment products and services on the market, a significant proportion of MSMEs were yet to adopt the use of digital payments systems pre COVID-19 pandemic. In this study, we argue that the pandemic experience shifted more consumers towards acceptability and utilisation of digital financial services. Our paper explores the factors that influence MSME acceptability of mobile money and mobile baking services post the pandemic. The study benefits from a sample of 368 MSMEs from Lusaka district of Zambia. Employing a probit model analysis, we establish that MSMEs are more acceptable of mobile money relative to mobile banking services. We further establish that MSME business owner attributes, business specific attributes and technological readiness is critical in digital payment acceptability and utilisation. From the findings, we offer recommendations for regulators and financial providers in improving service provision, product variety and achieving scale in digital payment adoption and utilisation.

Key words: Digital payment acceptability, Post COVID-19, financial utilization, MSMEs, mobile banking, mobile money

JEL Classification: G2; G210

DOI: 10.7176/JESD/16-4-06

Publication date: June 30th 2025