E-payment instruments and welfare: The case of Zimbabwe

The literature shows that electronic payments are key to improving financial inclusion and achieving global development goals such as the United Nation’s (UNs) Sustainable Development Goals. benefits premised on welfare-enhancing effects of digital payments, which reduce costs, probability loss risk for low-income consumers, well improve access formal services. This study thus investigates conditions under these gains can be obtained. It considers e-payments welfare enhancing by using qualitative data from Zimbabwe. severe liquidity constraints in Zimbabwe provide a good case evaluating how work, relative absence cash has made use mobile money inevitable. Focus group analysed understand participants’ everyday experiences with e-payment system results indicate challenges payment systems faced households include high malfunctions at point sale, lengthy refund processes limited acceptance. Participants strong preference foreign exchange mode payment. High levels concentration market, lack transparency service providers retailers main drivers failure. Therefore, this identifies need government address competition macroeconomic constraints.