Exploring informal street traders’ perceptions of digital banking in the City of Johannesburg Municipality

Abstract

This study explored informal street traders’ perceptions of digital banking in the City of Johannesburg (CoJ) Municipality, with a focus on the diffusion of innovation (DOI) theory and associated perceptual theories, including self-perception, dissonance, beliefs and influence, and harmonisation theories. The research examines how informal traders perceive digital banking, their knowledge and attitudes toward its adoption, and the factors that shape their understanding of digital banking services. Specifically, the study investigates the DOI constructs such as awareness, persuasion, decision, implementation, and continuation, and their influence on the adoption of digital banking among informal traders. Additionally, the research explores how DOI characteristics— relative advantage, compatibility, complexity, trialability, and observability also influence informal street traders' perceptions and adoption of digital banking services. The study also considers how self-perception, dissonance, beliefs, and influence theories provide insight into the emotional and cognitive factors that drive or hinder adoption. Using a quantitative methodology, surveys were distributed to informal street traders within the CoJ key areas (Johannesburg CBD, SOWETO (Jabulani Mall), Randburg Taxi Rank, Midrand Taxi Rank, Lenasia, Sandton Taxi Rank, and Alexandra) with close-ended questions to collect measurable data. The findings revealed that all hypotheses were accepted, except for the third hypothesis, indicating a generally positive correlation between the DOI adoption process and traders' beliefs, self-perceptions, and harmonisation of digital banking. However, the adoption process was found to have a negative impact on dissonance factors. This research contributes to understanding the role of DOI and perceptual theories in digital banking adoption and suggests avenues for future studies in the context of informal traders in urban environments inundated with informal street traders.