Factors influencing the adoption of digital payments and their potential to bridge the digital divide in Soweto, a township in South Africa

Abstract

This study explored the perceptions, barriers, and enablers shaping digital payment adoption among residents of Soweto, specifically focusing on how infrastructural, economic, cultural, and trust-related factors influence user behaviour. Guided by the Technology Acceptance Model (TAM) and Van Dijk’s relational theory of the digital divide, the research examined how perceived usefulness, ease of use, trust, digital skills, and socio-cultural dynamics interact to shape adoption decisions. A qualitative research design was employed, drawing on semi-structured interviews with a purposive sample of Soweto residents aged 25 to 40. Data were analysed using thematic analysis to identify recurring patterns and contextual insights. The findings revealed that adoption remained uneven while digital payment systems were widely recognised for their convenience, speed, and perceived security. Key barriers included high transaction fees, limited infrastructure and acceptance in informal sectors such as minibus taxis and spaza shops, and cultural preferences for cash, particularly among older family members. Concerns around trust, such as fear of fraud and dissatisfaction with non-human customer service, further constrained uptake. However, repeated use of digital platforms over time enhanced confidence and digital literacy, contributing to gradual shifts in financial behaviour among some users. The study concluded that promoting digital payment adoption in township contexts requires affordable, trusted, and culturally relevant solutions beyond infrastructure to address social, behavioural, and motivational barriers. These findings contribute to the broader discourse on digital financial inclusion and offer practical recommendations for policymakers, financial institutions, and fintech providers seeking to build inclusive digital ecosystems in underserved communities