Digital Payment Platform Adoption and Economic Performance of Ghanaian SMEs: A Mixed-Methods Analysis

Abstract

Ghana’s ambition to build a cash-lite economy, articulated in the National Financial Inclusion and Development Strategy (NFIDS 2018-2023) and reinforced by broader digitalization initiatives, has heightened interest in digital payment platforms as tools for strengthening small and medium-sized enterprises (SMEs). Despite rapid fintech growth, adoption among SMEs remains uneven, raising important questions about the factors shaping uptake and the extent to which digital payment use is associated with firm performance. This study investigates the determinants, barriers, and performance implications of digital payment adoption among Ghanaian SMEs using a mixed-methods design grounded in interpretivism and pragmatism. Quantitative data from 501 SME owners and managers were analyzed through exploratory and confirmatory factor analyses and regression analysis, while qualitative insights from nine semi-structured interviews were used to contextualize the statistical patterns. The findings indicate that digital payment adoption is positively associated with SME performance, with fintech usage explaining 32.4% of the variance in the performance construct. Higher levels of adoption were linked to improved sales growth, customer satisfaction, operational efficiency, and market reach within the study sample. Survey patterns and qualitative accounts further suggest that performance expectancy, effort expectancy, social influence, and facilitating conditions are particularly salient in shaping SME perceptions of digital payment platforms, while financial limitations, infrastructural deficits, cybersecurity concerns, low digital literacy, and entrenched cash preferences remain important perceived barriers. Because detailed multivariate outputs for the individual UTAUT2 constructs are not reported, these adoption-related interpretations are presented as descriptive rather than definitive estimates of relative effect size. The study recommends targeted financial incentives, expanded digital infrastructure, tailored capacity-building, and clearer regulatory frameworks to foster more inclusive adoption among SMEs. By situating these findings within Ghana’s policy agenda, the paper shows that digital payments have meaningful potential to support SME competitiveness, financial inclusion, and resilience, although their benefits depend on the broader structural and institutional conditions that shape adoption and sustained use.