A Review of the Adoption of Digital Payments by Spaza Shops in Cape Town

This paper investigates the limited adoption of digital payments in the informal economy, with a focus on Spaza shops, which contribute significantly to the South African economy. Using the Technology Acceptance Model and the Theory of Planned Behaviour, twelve Spaza shops in Hanover Park, Cape Town were interviewed to understand their perceptions towards the adoption of digital payments. The study identifies the factors that impact the adoption of financial technology, including Spaza shops’ strong preference for cash-only transactions and the lack of accessible technology. The study’s importance lies in bridging a gap in the informal economy by providing actionable solutions based on its findings. Notably, the study highlights the potential benefits of adopting digital payment solutions, and the need to raise awareness and offer targeted training and coaching to spaza shop owners.