The use of informal digital channels for remittances by financially excluded Zimbabwean migrants in South Africa

Abstract

This study critically explored how financially excluded Zimbabwean migrants in South Africa adopted informal digital channels for remittances. It was conducted through ten anonymised face-to-face interviews and thematic analysis; the research explored the decision-making of undocumented and partially documented migrants. Findings reveal that trust is the primary factor driving the adoption of high-risk informal systems like the Malayitsha remittance system, serving as a guarantee in the absence of legal documentation. A lack of trust stemming from inadequate financial digital literacy and accessibility fuels reluctance towards formal digital platforms. The study concludes that this reliance on informal channels, due to financial exclusion creates great vulnerabilities within South Africa's socio-economic landscape and highlights a critical gap for targeted digital intervention