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Overcoming Marginalization: Mobile Payment Domestication by Underserved South African Microentrepreneurs

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Implications of Information and Digital Technologies for Development (ICT4D 2024)

Part of the book series: IFIP Advances in Information and Communication Technology ((IFIPAICT,volume 708))

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Abstract

Mobile payment technology has become widespread among businesses globally, offering an alternative to traditional payment systems. However, existing literature does not adequately explore the underlying factors influencing how underserved microentrepreneurs appropriate, objectify and incorporate mobile payments into their business processes and lives. This study, guided by Technology Domestication and Actor-Network Theory, qualitatively examines the motivations, contextual factors, and design features that enable mobile payment domestication among twenty (N = 20) underserved South African microentrepreneurs. Thematic analysis of the in-depth interviews revealed persisting financial exclusion, growth optimism, and risk reduction as primary motives for long-term mobile payment use, while the spider network community practices, payment service provider and consumer culture dynamics, infrastructural and regulatory landscape are influential contextual conditions. Inclusive and flexible design, affordability, and trust emerged as key mobile payment design considerations impacting overall mobile payment domestication. Policymakers and payment platforms can contribute positively by participating directly in local microenterprise-centered development initiatives. Further research is needed to explore the evolving needs and expectations of microentrepreneurs and understand the developmental impacts of these technologies.

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Authors and Affiliations

  1. Department of Information Systems, University of Cape Town, Cape Town, South Africa

    Phakamani Mavela & Pitso Tsibolane

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  1. Phakamani Mavela
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  2. Pitso Tsibolane
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Correspondence to Phakamani Mavela .

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Editors and Affiliations

  1. University of Cape Town, Rondebosch, South Africa

    Wallace Chigona

  2. University of Cape Town, Rondebosch, South Africa

    Salah Kabanda

  3. University of Cape Town, Rondebosch, South Africa

    Lisa F. Seymour

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Mavela, P., Tsibolane, P. (2024). Overcoming Marginalization: Mobile Payment Domestication by Underserved South African Microentrepreneurs. In: Chigona, W., Kabanda, S., Seymour, L.F. (eds) Implications of Information and Digital Technologies for Development. ICT4D 2024. IFIP Advances in Information and Communication Technology, vol 708. Springer, Cham. https://doi.org/10.1007/978-3-031-66982-8_8

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  • DOI: https://doi.org/10.1007/978-3-031-66982-8_8

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  • Online ISBN: 978-3-031-66982-8

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