Factors Influencing the Adoption of Digital Wallet: Evidence from Ghana

Ofosu Amofah; Otopah Akuffo Alex; Collins Kankam Kwarteng; Ahlijah Bright; Simon Kwodjo Mesa Avorgah

doi:doi:10.11648/j.ebm.20230905.13

| Peer-Reviewed

Factors Influencing the Adoption of Digital Wallet: Evidence from Ghana

Ofosu Amofah, Otopah Akuffo Alex, Collins Kankam Kwarteng, Ahlijah Bright, Simon Kwodjo Mesa Avorgah

Published in European Business & Management (Volume 9, Issue 5)

Received: 14 July 2023 Accepted: 14 August 2023 Published: 27 September 2023

Views: Downloads:

Download PDF

Share This Article

Twitter
Linked In
Facebook

Abstract

The increasing demand for virtual banking transactions in the world amidst the global COVID-19 pandemic has necessitated the need for banks to understand factors that influence the adoption of digital wallets. This study therefore focused on the assessment of the factors that influence the adoption of digital wallet in Ghana. The study employed a survey design and data were gathered from 200 individual customers of the top performing banks in terms of digital wallets. Convenient sampling method was used for the selection of the respondents who were willing and ready to participate. Partial least squares structural equation modeling (PLS–SEM) was employed for the analysis of the data. The study revealed that innovation characteristics, individual customer characteristics, organizational characteristics and external factors had significant effect on adoption. All the independent variables except individual customer characteristics had a positive effect on adoption. It is therefore recommended that management pays much commitment on understanding their innovation characteristics, organizational characteristics and external factors than the understanding of individual customer characteristics. The researchers obtained data from individual customers of the top performing banks in the area of digital wallet. The cross-sectional survey made it impossible to ascertain the possible changes in respondent’s perceptions on factors that influence their adoption.

Published in	European Business & Management (Volume 9, Issue 5)
DOI	10.11648/j.ebm.20230905.13
Page(s)	101-111
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Adoption, Digital Innovation, Digital Wallet, Pls-Sem

References

[1]	Alaeddin O., Rana A., Zainudin Z., Kamarudin F. (2018), From physical to digital: investigating consumer behaviour of switching to mobile wallet, Polish Journal of Management Studies, 17 (2), pp. 18-30.
[2]	Balabanoff, G. A. (2014), Mobile Banking Applications: Consumer Behaviour, Acceptance and Adoption Strategies in Johannesburg, South Africa (RSA) Mediterranean Journal of Social Sciences, 5 (27), pp. 247-258.
[3]	Bank of Ghana (2020), Payment Systems Oversight: Annual Report. https://www.bog.gov.gh/wp-content/uploads/2022/02/Payment-Systems-Annual-Report: Retrieved, 20^th June, 2022.
[4]	Bauer, H. H; Reichardt, T.; Barnes, S. J. and Neumann, M. M. (2005), Driving Consumer Acceptance of Mobile marketing: A theoretical Framework and Empirical Study’’. Journal of Electronic commerce research, 6 (3), pp. 181-192.
[5]	Bayol, M., Foye, A. D., Tellier, C. and Tenenhaus, M. (2000), “Use of PLS path modelling to estimate the European Consumer Satisfaction Index (ECSI) model”, Statistica Applicata, Vol. 12 No. 1, pp. 361-375.
[6]	Chin, W. W. (1998), Commentary: Issues and opinion on structural equation modeling. MIS quarterly, pp. vii-xvi.
[7]	Chor, K. H. B., Wisdom, J. P., Olin, S. C. S., Hoagwood, K. E. and Horwitz, S. M. (2015), Measures for predictors of innovation adoption. Administration and Policy in Mental Health and Mental Health Services Research, 42 (5), pp. 545-573.
[8]	Claudy, M. C., Garcia, R. and O’Driscoll, A. (2015), Consumer resistance to innovation—a behavioral reasoning perspective. Journal of the Academy of Marketing Science, 43 (4), pp. 528-544.
[9]	Constantiou, I. D. and Mahnke, V. (2010), Consumer behaviour and mobile TV services: do men differ from women in their adoption intentions?. Journal of Electronic Commerce Research, 11 (2).
[10]	Davis, F. (1986), Technology Acceptance Model for Empirical Testing New End-User Information system: Theory and Results, Boston, USA.
[11]	Dotzel, T., Shankar, V. and Berry, L. L. (2013), Service innovativeness and firm value. Journal of Marketing Research, 50 (2), pp. 259-276.
[12]	Fadhilah, I. and Aruan, D. T. H., 2023. Understanding consumer adoption and actual usage of digital payment instruments: comparison between Generation Y and Generation Z. International Journal of Electronic Marketing and Retailing, 14 (1), pp. 39-60.
[13]	Faiers, A. and Neame, C. (2006), Consumer attitudes towards domestic solar power systems. Energy policy, 34 (14), pp. 1797-1806.
[14]	Fornell, C. and Larcker, D. F. (1981), “Evaluating structural equation models with unobservable variables and measurements error”, Journal of Marketing Research, Vol. 18 No. 1, pp. 39-50.
[15]	Hair, J. F., Hult, T. M., Ringle, C. and Sarstedt, M. (2014), A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM), Sage Publications, Thousand Oaks, CA, available at: https://doi. org/10.1016/j.lrp.2013.01.002
[16]	Heidenreich, S. and Kraemer, T. (2016), Innovations—doomed to fail? Investigating strategies to overcome passive innovation resistance. Journal of Product Innovation Management, 33 (3), pp. 277-297.
[17]	Heidenreich, S. and Spieth, P. (2013), Why innovations fail—The case of passive and active innovation resistance. International Journal of Innovation Management, 17 (05), p. 1350021.
[18]	Henseler, J., Ringle, C. M. and Sinkovics, R. (2009), “The use of partial least squares path modeling in international marketing”, Advances in International Marketing, Vol. 20, pp. 277-319.
[19]	Hew, K. F., Lan, M., Tang, Y., Jia, C. and Lo, C. K. (2019), Where is the “theory” within the field of educational technology research?. British Journal of Educational Technology, 50 (3), pp. 956-971.
[20]	Hu, L. and Bentler, P. M. (1999), “Cutoff criteria for fit indexes in covariance structure analysis: conventional criteria versus new alternatives”, Structural Equation Modeling: A Multidisciplinary Journal, Vol. 6 No. 1, pp. 1-55.
[21]	Huang, M. H. and Rust, R. T. (2013), IT-related service: A multidisciplinary perspective. Journal of Service Research, 16 (3), pp. 251-258.
[22]	International Monetary Fund. (2019), World Economic Outlook: Global Manufacturing Downturn, Rising Trade Barriers. Washington, DC, October.
[23]	Jahanmir, S. F. and Cavadas, J. (2018), Factors affecting late adoption of digital innovations. Journal of business research, 88, pp. 337-343.
[24]	Joachim, V., Spieth, P. and Heidenreich, S. (2018), Active innovation resistance: An empirical study on functional and psychological barriers to innovation adoption in different contexts. Industrial Marketing Management, 71, pp. 95-107.
[25]	Kaplan, R. S. and Norton, D. P. (1996), Using the balanced scorecard as a strategic management system.
[26]	Kerem K., Luštšik, O Sõrg, M and Vensel V. (2002), 'E-Banking In Estonia: Development, Driving Factors and Effects'. Paper presented on the 10th Annual Conference on Marketing and Business Strategies for Central & Eastern Europe. Vienna.
[27]	Khan, S., Khan, S. U., Khan, I. U., Khan, S. Z. and Khan, R. U., 2023. Understanding consumer adoption of mobile payment in Pakistan. Journal of Science and Technology Policy Management.
[28]	Konya-Baumbach, E., Schuhmacher, M. C., Kuester, S. and Kuharev, V. (2019), Making a first impression as a start-up: Strategies to overcome low initial trust perceptions in digital innovation adoption. International Journal of Research in Marketing, 36 (3), pp. 385-399.
[29]	Kotler, P. and Armstrong, G. (2010), Principles of Marketing, (13th Ed.), Pearson Prentice Hall, USA.
[30]	Kotler P. (2003), Marketing management, 11^th edition, Prentice Hall International, New Jersey. USA.
[31]	Laukkanen, P., Sinkkonen, S. and Laukkanen, T. (2008), Consumer resistance to internet banking: postponers, opponents and rejecters. International journal of bank marketing.
[32]	Laukkanen, T. and Kiviniemi, V. (2010), The role of information in mobile banking resistance. International Journal of bank marketing.
[33]	Laukkanen, T. (2016), Consumer adoption versus rejection decisions in seemingly similar service innovations: The case of the Internet and mobile banking. Journal of Business Research, 69 (7), pp. 2432-2439.
[34]	Lim, T. Y., Lim, B. C. Y., Leong, C. M., Phang, I. G. and Foong, W. H., 2023. Consumer adoption of on-demand digital platforms: An integrated model. Global Business and Organizational Excellence.
[35]	Lu, J., Yao, J. E. and Yu, C. S. (2005), Personal innovativeness, social influences and adoption of wireless Internet services via mobile technology. The Journal of Strategic Information Systems, 14 (3), pp. 245-268.
[36]	Mani, Z. and Chouk, I. (2018), Consumer resistance to innovation in services: challenges and barriers in the internet of things era. Journal of Product Innovation Management, 35 (5), pp. 780-807.
[37]	Mani, Z. and Chouk, I. (2019), Impact of privacy concerns on resistance to smart services: does the ‘Big Brother effect’matter?. Journal of Marketing Management, 35 (15-16), pp. 1460-1479.
[38]	Nylén, D. and Holmström, J. (2015), Digital innovation strategy: A framework for diagnosing and improving digital product and service innovation. Business Horizons, 58 (1), pp. 57-67.
[39]	Proctor, E. and Brownson, R. C. (2012), Implementation research. Dissemination and implementation research in health: Translating science to practice, 1261.
[40]	Proctor, E., Silmere, H., Raghavan, R., Hovmand, P., Aarons, G., Bunger, A., Griffey, R. and Hensley, M. (2011), Outcomes for implementation research: conceptual distinctions, measurement challenges, and research agenda. Administration and policy in mental health and mental health services research, 38 (2), pp. 65-76.
[41]	Rogers, E. M. (1995), Diffusion of Innovations: modifications of a model for telecommunications. In Die diffusion von innovationen in der telekommunikation (pp. 25-38). Springer, Berlin, Heidelberg.
[42]	Salemink, K., Strijker, D. and Bosworth, G. (2017), Rural development in the digital age: A systematic literature review on unequal ICT availability, adoption, and use in rural areas. Journal of Rural Studies, 54, pp. 360-371.
[43]	Seth, H., Talwar, S., Bhatia, A., Saxena, A. and Dhir, A. (2020), Consumer resistance and inertia of retail investors: development of the resistance adoption inertia con- tinuance (RAIC) framework. J. Retail. Consum. Serv. https://doi.org/10.1016/j. jretconser.2020.102071.
[44]	Sharma, M., Shah, J., Joshi, S., Youssef, A. B. and Misra, A., 2023. Digital Innovation and Sustainability Driven Consumer Behavior: A Review and Research Agenda.
[45]	Straub, D., Boudreau, M. C. and Gefen, D. (2004), “Validation guidelines for IS positivistic research”, Communications of the Association for Information Systems, Vol. 13 No. 1, pp. 380-427.
[46]	Talke, K. and Heidenreich, S. (2014), How to overcome pro-change bias: incorporating passive and active innovation resistance in innovation decision models. Journal of Product Innovation Management, 31 (5), pp. 894-907.
[47]	Talwar, S., Talwar, M., Kaur, P. and Dhir, A. (2020), Consumers’ resistance to digital innovations: A systematic review and framework development. Australasian Marketing Journal (AMJ), 28 (4), pp. 286-299.
[48]	Tansuhaj, P., Gentry, J. W., John, J., Manzer, L. L. and Cho, B. J. (1991), A cross-national examination of innovation resistance. International Marketing Review.
[49]	Taylor, S. and Todd, P. (1995), Decomposition and crossover effects in the theory of planned behavior: A study of consumer adoption intentions. International journal of research in marketing, 12 (2), pp. 137-155.
[50]	Tobbin, P. E. (2010), Modeling adoption of mobile money transfer: A consumer behaviour analysis. Variables and measurements error”, Journal of Marketing Research, Vol. 18 No. 1, pp. 39-50.
[51]	Townsend, L., Sathiaseelan, A., Fairhurst, G., Wallace, C. (2013), Enhanced broadband access as a solution to the social and economic problems of the rural digital divide. Local Econ. 28 (6), 580–595.
[52]	Veselovsky, M. Y., Pogodina, T. V., Ilyukhina, R. V., Sigunova, T. A. and Kuzovleva, N. F. (2018), Financial and economic mechanisms of promoting innovative activity in the context of the digital economy formation. Entrepreneurship and Sustainability Issues, 5 (3), pp. 672-681.
[53]	Vinayamoorthi, G. and Thirupathi, M. (2020), Consumer’s Adoption of Digital Wallets With Special Reference to Bangalore City. Shanlax International Journal of Management, 8 (2), pp. 108-113.
[54]	Wisdom JP, Chor KHB, Hoagwood KE, Horwitz SM. (2013), Innovation adoption: A review of theories and constructs. Administration and Policy in Mental Health and Mental Health Services Research. doi: 10.1007/s10488-013-0486-4. Advance online publication.
[55]	Zitkiene, R., Markeviciute, G. and Mickeviciene, M. (2017), October. The Determinants of Consumer Behaviour Influencing the Smart Technology Recognition and Acceptance. In International Conference at Brno University of Technology, Faculty of Business and Management.
[56]	Zolfaghari, A., Thomas-Francois, K. and Somogyi, S., 2023. Consumer adoption of digital grocery shopping: what is the impact of consumer’s prior-to-use knowledge?. British Food Journal, 125 (4), pp. 1355-1373.

Cite This Article

Plain Text BibTeX RIS

APA Style

Ofosu Amofah, Otopah Akuffo Alex, Collins Kankam Kwarteng, Ahlijah Bright, Simon Kwodjo Mesa Avorgah. (2023). Factors Influencing the Adoption of Digital Wallet: Evidence from Ghana. European Business & Management, 9(5), 101-111. https://doi.org/10.11648/j.ebm.20230905.13

Copy | Download

ACS Style

Ofosu Amofah; Otopah Akuffo Alex; Collins Kankam Kwarteng; Ahlijah Bright; Simon Kwodjo Mesa Avorgah. Factors Influencing the Adoption of Digital Wallet: Evidence from Ghana. Eur. Bus. Manag. 2023, 9(5), 101-111. doi: 10.11648/j.ebm.20230905.13

Copy | Download

AMA Style

Ofosu Amofah, Otopah Akuffo Alex, Collins Kankam Kwarteng, Ahlijah Bright, Simon Kwodjo Mesa Avorgah. Factors Influencing the Adoption of Digital Wallet: Evidence from Ghana. Eur Bus Manag. 2023;9(5):101-111. doi: 10.11648/j.ebm.20230905.13

Copy | Download

@article{10.11648/j.ebm.20230905.13,
  author = {Ofosu Amofah and Otopah Akuffo Alex and Collins Kankam Kwarteng and Ahlijah Bright and Simon Kwodjo Mesa Avorgah},
  title = {Factors Influencing the Adoption of Digital Wallet: Evidence from Ghana},
  journal = {European Business & Management},
  volume = {9},
  number = {5},
  pages = {101-111},
  doi = {10.11648/j.ebm.20230905.13},
  url = {https://doi.org/10.11648/j.ebm.20230905.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ebm.20230905.13},
  abstract = {The increasing demand for virtual banking transactions in the world amidst the global COVID-19 pandemic has necessitated the need for banks to understand factors that influence the adoption of digital wallets. This study therefore focused on the assessment of the factors that influence the adoption of digital wallet in Ghana. The study employed a survey design and data were gathered from 200 individual customers of the top performing banks in terms of digital wallets. Convenient sampling method was used for the selection of the respondents who were willing and ready to participate. Partial least squares structural equation modeling (PLS–SEM) was employed for the analysis of the data. The study revealed that innovation characteristics, individual customer characteristics, organizational characteristics and external factors had significant effect on adoption. All the independent variables except individual customer characteristics had a positive effect on adoption. It is therefore recommended that management pays much commitment on understanding their innovation characteristics, organizational characteristics and external factors than the understanding of individual customer characteristics. The researchers obtained data from individual customers of the top performing banks in the area of digital wallet. The cross-sectional survey made it impossible to ascertain the possible changes in respondent’s perceptions on factors that influence their adoption.},
 year = {2023}
}

Copy | Download

TY  - JOUR
T1  - Factors Influencing the Adoption of Digital Wallet: Evidence from Ghana
AU  - Ofosu Amofah
AU  - Otopah Akuffo Alex
AU  - Collins Kankam Kwarteng
AU  - Ahlijah Bright
AU  - Simon Kwodjo Mesa Avorgah
Y1  - 2023/09/27
PY  - 2023
N1  - https://doi.org/10.11648/j.ebm.20230905.13
DO  - 10.11648/j.ebm.20230905.13
T2  - European Business & Management
JF  - European Business & Management
JO  - European Business & Management
SP  - 101
EP  - 111
PB  - Science Publishing Group
SN  - 2575-5811
UR  - https://doi.org/10.11648/j.ebm.20230905.13
AB  - The increasing demand for virtual banking transactions in the world amidst the global COVID-19 pandemic has necessitated the need for banks to understand factors that influence the adoption of digital wallets. This study therefore focused on the assessment of the factors that influence the adoption of digital wallet in Ghana. The study employed a survey design and data were gathered from 200 individual customers of the top performing banks in terms of digital wallets. Convenient sampling method was used for the selection of the respondents who were willing and ready to participate. Partial least squares structural equation modeling (PLS–SEM) was employed for the analysis of the data. The study revealed that innovation characteristics, individual customer characteristics, organizational characteristics and external factors had significant effect on adoption. All the independent variables except individual customer characteristics had a positive effect on adoption. It is therefore recommended that management pays much commitment on understanding their innovation characteristics, organizational characteristics and external factors than the understanding of individual customer characteristics. The researchers obtained data from individual customers of the top performing banks in the area of digital wallet. The cross-sectional survey made it impossible to ascertain the possible changes in respondent’s perceptions on factors that influence their adoption.
VL  - 9
IS  - 5
ER  -

Copy | Download

Author Information

Ofosu Amofah

Marketing Department, Ho Technical University, Ho, Ghana
Otopah Akuffo Alex

Marketing Department, Ho Technical University, Ho, Ghana
Collins Kankam Kwarteng

Marketing Department, Kumasi Technical University, Kumasi, Ghana
Ahlijah Bright

Marketing Department, Ho Technical University, Ho, Ghana
Simon Kwodjo Mesa Avorgah

Marketing Department, Ho Technical University, Ho, Ghana

Download PDF

Sections

Plain Text BibTeX RIS

APA Style

Ofosu Amofah, Otopah Akuffo Alex, Collins Kankam Kwarteng, Ahlijah Bright, Simon Kwodjo Mesa Avorgah. (2023). Factors Influencing the Adoption of Digital Wallet: Evidence from Ghana. European Business & Management, 9(5), 101-111. https://doi.org/10.11648/j.ebm.20230905.13

Copy | Download

ACS Style

Ofosu Amofah; Otopah Akuffo Alex; Collins Kankam Kwarteng; Ahlijah Bright; Simon Kwodjo Mesa Avorgah. Factors Influencing the Adoption of Digital Wallet: Evidence from Ghana. Eur. Bus. Manag. 2023, 9(5), 101-111. doi: 10.11648/j.ebm.20230905.13

Copy | Download

AMA Style

Ofosu Amofah, Otopah Akuffo Alex, Collins Kankam Kwarteng, Ahlijah Bright, Simon Kwodjo Mesa Avorgah. Factors Influencing the Adoption of Digital Wallet: Evidence from Ghana. Eur Bus Manag. 2023;9(5):101-111. doi: 10.11648/j.ebm.20230905.13

Copy | Download

@article{10.11648/j.ebm.20230905.13,
  author = {Ofosu Amofah and Otopah Akuffo Alex and Collins Kankam Kwarteng and Ahlijah Bright and Simon Kwodjo Mesa Avorgah},
  title = {Factors Influencing the Adoption of Digital Wallet: Evidence from Ghana},
  journal = {European Business & Management},
  volume = {9},
  number = {5},
  pages = {101-111},
  doi = {10.11648/j.ebm.20230905.13},
  url = {https://doi.org/10.11648/j.ebm.20230905.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ebm.20230905.13},
  abstract = {The increasing demand for virtual banking transactions in the world amidst the global COVID-19 pandemic has necessitated the need for banks to understand factors that influence the adoption of digital wallets. This study therefore focused on the assessment of the factors that influence the adoption of digital wallet in Ghana. The study employed a survey design and data were gathered from 200 individual customers of the top performing banks in terms of digital wallets. Convenient sampling method was used for the selection of the respondents who were willing and ready to participate. Partial least squares structural equation modeling (PLS–SEM) was employed for the analysis of the data. The study revealed that innovation characteristics, individual customer characteristics, organizational characteristics and external factors had significant effect on adoption. All the independent variables except individual customer characteristics had a positive effect on adoption. It is therefore recommended that management pays much commitment on understanding their innovation characteristics, organizational characteristics and external factors than the understanding of individual customer characteristics. The researchers obtained data from individual customers of the top performing banks in the area of digital wallet. The cross-sectional survey made it impossible to ascertain the possible changes in respondent’s perceptions on factors that influence their adoption.},
 year = {2023}
}

Copy | Download

TY  - JOUR
T1  - Factors Influencing the Adoption of Digital Wallet: Evidence from Ghana
AU  - Ofosu Amofah
AU  - Otopah Akuffo Alex
AU  - Collins Kankam Kwarteng
AU  - Ahlijah Bright
AU  - Simon Kwodjo Mesa Avorgah
Y1  - 2023/09/27
PY  - 2023
N1  - https://doi.org/10.11648/j.ebm.20230905.13
DO  - 10.11648/j.ebm.20230905.13
T2  - European Business & Management
JF  - European Business & Management
JO  - European Business & Management
SP  - 101
EP  - 111
PB  - Science Publishing Group
SN  - 2575-5811
UR  - https://doi.org/10.11648/j.ebm.20230905.13
AB  - The increasing demand for virtual banking transactions in the world amidst the global COVID-19 pandemic has necessitated the need for banks to understand factors that influence the adoption of digital wallets. This study therefore focused on the assessment of the factors that influence the adoption of digital wallet in Ghana. The study employed a survey design and data were gathered from 200 individual customers of the top performing banks in terms of digital wallets. Convenient sampling method was used for the selection of the respondents who were willing and ready to participate. Partial least squares structural equation modeling (PLS–SEM) was employed for the analysis of the data. The study revealed that innovation characteristics, individual customer characteristics, organizational characteristics and external factors had significant effect on adoption. All the independent variables except individual customer characteristics had a positive effect on adoption. It is therefore recommended that management pays much commitment on understanding their innovation characteristics, organizational characteristics and external factors than the understanding of individual customer characteristics. The researchers obtained data from individual customers of the top performing banks in the area of digital wallet. The cross-sectional survey made it impossible to ascertain the possible changes in respondent’s perceptions on factors that influence their adoption.
VL  - 9
IS  - 5
ER  -

Copy | Download