UNIVERSITY OF GHANA COLLEGE OF HUMANITIES LEVERAGING MOBILE PAYMENT AFFORDANCE FOR BUSINESS BENEFIT: A CASE STUDY OF MERCHANTS IN GHANA EUNICE YEBOAH AFETI DEPARTMENT OF OPERATIONS AND MANAGEMENT INFORMATION SYSTEMS MARCH, 2023 University of Ghana http://ugspace.ug.edu.gh ii UNIVERSITY OF GHANA COLLEGE OF HUMANITIES LEVERAGING MOBILE PAYMENT AFFORDANCE FOR BUSINESS BENEFIT: A CASE STUDY OF MERCHANTS IN GHANA BY EUNICE YEBOAH AFETI (10296031) A THESIS SUBMITTED TO THE SCHOOL OF GRADUATE STUDIES IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF DOCTOR OF PHILOSOPHY IN INFORMATION SYSTEMS DEPARTMENT OF OPERATIONS AND MANAGEMENT INFORMATION SYSTEMS MARCH, 2023 University of Ghana http://ugspace.ug.edu.gh i 10th March 2023 10th March 2023 10th March 2023 10th March 2023 DECLARATION I hereby declare that this thesis is the result of my research done under supervision and has never been presented either in whole or in part for any other degree at this university or elsewhere. ……………..………….. .................................. Eunice Yeboah Afeti Date (10296031) …………………………… ………………………… Professor Richard Boateng Date (Lead Supervisor) …………………………… ………… Dr. Eric Afful-Dadzie Date (Co-Supervisor) …………………………… Dr. Acheampong Owusu Date (Co-Supervisor) ………… …………………………… ………………………… Dr. Joshua Ofori-Amanfo Date (Co-Supervisor) 10th March 2023 University of Ghana http://ugspace.ug.edu.gh ii ABSTRACT Merchant adoption of mobile payment platforms is critical in market development for mobile payments in Africa. Extant literature has validated that the COVID-19 global pandemic is reshaping the market outlook for payments in Africa and how merchants and consumers respond. The pandemic has also driven a significant change in consumer and merchant behaviours that will continue to exist, even after the post-COVID-19 era. Despite the myriad of research on mobile payment, there exist a paucity of research from the merchant’s perspective on mobile payment platforms’ adoption, their affordances, and the outcomes of merchants’ interactions with these platforms. The dearth of knowledge on the above has revealed four significant interrelated research gaps that need attention. First, arguably there is lack of understanding of merchant decision pathways and the strategic and non-strategic influencing factors in adopting mobile payment platforms aside utility/risk trade-offs. Second, slimily limited knowledge of how merchants interact with, identify and actualise affordances that accompany mobile payment systems and their attendant constraints. Third, the literature project limited understanding of the strategic and non- strategic outcomes of actualising mobile payment affordances after adoption, specifically focusing on what outcomes occur and what goals are achieved due to the affordance actualisation process. Last, there is arguably limited understanding of the context-specific factors that enable, stimulate and constrain specific technology in a specific context and the affordances generated from actors’ interaction with technology. Therefore, the purpose of this research is stated as follows: developing a theoretical and practice-oriented framework that explains mobile payment platforms' adoption decision pathways of merchants and how these platforms afford or constrain benefits to merchants. University of Ghana http://ugspace.ug.edu.gh iii This doctoral thesis formulated four research questions using the Ghanaian context as a case based on the identified gaps. First, "What are the mobile payment platforms' adoption decision pathways of merchants in Ghana and the strategic and non-strategic influencing factors besides the risk/utility trade-off"? Second, "How do mobile payment platforms afford or constrain merchants' transactions in Ghana"? Third, "What forms of outcomes (benefits) do mobile payment platforms afford merchants in Ghana "? last, "What enabling, stimulating and releasing conditions affect the benefits afforded by mobile payment platforms to merchants in Ghana"? Addressing the above research questions contributes to achieving the study's purpose of developing a theoretical and practice-oriented framework that explains mobile payment platforms' adoption decision pathways of merchants and how these platforms afford or constrain benefits to merchants. The study employed the Technology Affordance and Constraints Theory with principles from the Rational Choice Theory and literature on e-commerce to develop a conceptual framework. Based on the conceptual framework, five propositions were developed and tested. Further, the study was underpinned by the critical realist paradigm and adopted a qualitative multiple-case study approach using three merchant firms in Ghana to explore an in-depth understanding of the phenomenon. The case firms were theoretically selected based on a predetermined set of criteria. The research focused on Ghana because the country is an instance of a developing economy is continuously increasing access to payment systems by leveraging the widespread usage of mobile payment technologies as alternative channel access to financial inclusion and to promote a cash-lite economy. In responding to the first research question, the study found three main pathways by which merchants adopt mobile payment platforms in Ghana. First, rational decision, where the merchant adoption of mobile payment platforms is influenced by cost-benefit analysis based on the utility /risk trade-offs. The second is a strategic decision, where the business model University of Ghana http://ugspace.ug.edu.gh iv and partnership survival influence merchant adoption of mobile payment. The third is the experimental decision, where merchants incrementally develop capabilities in adopting and using mobile payment. The findings suggest that in Ghana, factors that influence the merchant adoption of mobile payment platforms are multidimensional instead of the unidimensional factors identified in extant literature. Hitherto, there was no mention of the experimental decision, in literature, which, therefore, is a new contribution. Out of the three- dimensional factors that could influence merchants’ decision to adopt mobile payment, the strategic path was found to be most influential because it supported merchants’ organisational strategies of developing new business models. The second research question found that merchants’ interaction with mobile payment platforms afford the merchant a primary affordance of strategic information capturing. Relative to the extant literature, the study further revealed that the primary affordance of strategic information further affords the merchant with action possibilities of possible data analytics on critical customer data, leading to superior secondary affordances such as performance-monitoring, business development, and fraud detection affordances. Despite these affordances, technological deficiency, and value chain shortcomings such as mobile payment platforms interoperability, electronic-levy policy implementation, and network connectivity constrained mobile payment platform affordance actualisation and benefits. The third research question found that merchant mobile payment platform's affordance actualisation leads to strategic and operational benefits, as reported in the e-commerce literature in information systems. The study further discovered three new forms of benefits from mobile payment platforms' affordance actualisation relative to extant literature. This includes transformational, managerial, and organisational benefits. The transformational benefits were vital in supporting valuable and positive change in merchants’ firms leading to efficient merchant service delivery. This conceptualisation has not yet received scholars’ University of Ghana http://ugspace.ug.edu.gh v attention in mobile payment literature therefore this finding is a new knowledge and contribution to mobile payment research. Finally, the fourth research question found adoption readiness and stakeholder direction as two key enabling conditions. The adoption readiness factors include a favourable adoption environment, mobile payment pervasiveness, critical mass, and digitalisation uptake from COVID-19 pandemic. The prevailing payment culture consisted of mobile payment as the new normal, multi-currency feature and third-party mobile payment support. The stakeholder directional factors were also found to include regulatory factors and competitive pressure. The regulatory factors include government legislation, operational accreditation and interoperability. Finally, competitive pressure relates to usage from other firms and the changing consumer preference. On the other hand, the merchant’s orientation, the kind of business model, perceived extra revenue generation, financial readiness, merchant brand value, and COVID-19 served as stimulating conditions. Furthermore, the merchant's decision to pursue an overall benefit was found to be the fundamental releasing condition. The originality and contribution of this doctoral study to research and practice are as follows. First, hitherto non-existent in mobile payment literature, the research uncovers a new decision-making pathway to merchants’ adoption of mobile payment platforms. Second, this study contributes to theory development in the field of IS and mobile payment studies with several conceptualisations. This includes an empirically-validated conceptual framework that explains how mobile payment platforms afford or constrain benefits to merchants; a unique conceptualisation of mobile payment benefits as transformational, managerial and organisational; and six typologies on merchant adoption pathways to mobile payment platforms, affordances and constraints, mobile payment affordance actualisation outcomes and typologies of environmental factors that can enable, stimulate or release affordance perception and actualisation from a developing country context. These were non- University of Ghana http://ugspace.ug.edu.gh vi existent in the mobile payment literature hitherto this study. Also, policymakers and practitioners can leverage this knowledge to create enabling conditions to ensure merchants’ continuance in the use of mobile payment platforms. This study's contributions have been published in one journal, two book chapters and two conference papers. DEDICATION This thesis is dedicated to the Almighty God for leveraging His Grace for this affordance. University of Ghana http://ugspace.ug.edu.gh vii ACKNOWLEDGEMENT I blessed the name of the Living God for how far He has brought me; it has been purely by His grace. I would like to also express my profound gratitude to my lead supervisor, Professor Richard Boateng, for his invaluable contribution, advice, continuous support, and patience during my PhD study. His immense knowledge and ample experience have encouraged me throughout my academic research and daily life. I am also incredibly grateful to my co-supervisors, Dr Eric Afful-Dadzie, Dr Acheampong Owusu and Dr Joshua Ofori- Amanfo, for their technical support and kind attention. My gratitude goes to Dr. Sheena Lovia Boateng of UGBS for her treasured support, which shaped me through the PhD journey. My most profound appreciation goes to Dr Joseph Budu at GIMPA School of Technology for his support and Tutelage. More importantly, I want to thank my husband, Mr. Raymond Afeti, for all the help I received from him and my sons, John David and Brian Joel, who were such an inspiration. I know this will chart a path for them in the future. Thanks to my sister and my friend Joyce Takyi Akyeamah and Esther Kesewa Ayisi- Ahwireng, respectively, for their encouragement and support. My sincerest gratitude goes to all the officials in the institutions that granted me asses to data and institutional data verification. Special appreciation goes to Mr Eric Ntiamoah, commercial manager MTN, Mr Ato Ulzen- Appiah, country director Kosmos innovation centre and Mr Fatahu Abdul, General manager Blue skies products Ghana LTD for their prompt response to my data request. Also, I acknowledge all participants for their immense support; without your help, this study would not have been accomplished. Finally, to all the faculty and administrative staff in the OMIS Department of UGBS, especially Mr. Charles Turkson, I am eternally grateful for the immeasurable contribution. GOD bless you all. University of Ghana http://ugspace.ug.edu.gh viii TABLE OF CONTENTS DECLARATION ................................................................................................................... i ABSTRACT ......................................................................................................................... ii DEDICATION ..................................................................................................................... vi ACKNOWLEDGEMENT .................................................................................................. vii TABLE OF CONTENTS .................................................................................................. viii LIST OF FIGURES .......................................................................................................... xvii LIST OF TABLES ........................................................................................................... xviii CHAPTER ONE ................................................................................................................... 1 INTRODUCTION ................................................................................................................ 1 1.1 Research Background ............................................................................................................ 1 1.2 Research Problem .................................................................................................................. 5 1.3 Research Purpose ................................................................................................................. 11 1.4 Research Objectives ............................................................................................................. 11 1.5 Research Questions .............................................................................................................. 14 1.6 Significance of the Research ................................................................................................ 14 1.7 Chapter Outline .................................................................................................................... 16 CHAPTER TWO ................................................................................................................ 18 LITERATURE REVIEW ................................................................................................... 18 2.1 Chapter Overview ................................................................................................................ 18 2.2 Mobile Payment an Overview ............................................................................................. 18 2.2.1 Mobile Payment Classifications .................................................................................................... 21 University of Ghana http://ugspace.ug.edu.gh ix 2.3 Mobile Payment Technologies ............................................................................................ 21 2.3.1 Short Message Service (SMS) ....................................................................................................... 22 2.3.2 Online (Wireless) .......................................................................................................................... 22 2.3.3 Quick Response Code (QR Codes) ............................................................................................... 23 2.3.4 Near Field Communication (NFC) ................................................................................................ 23 2.3.5 Fingerprint Recognition ................................................................................................................ 24 2.4 Mobile Payment Value Chain ............................................................................................. 25 2.4.1 Specific Role in the Value Chain .................................................................................................. 26 2.4.2 Financial Institutions ..................................................................................................................... 26 2.4.3 Payment Processing Networks ...................................................................................................... 26 2.4.4 Customers ...................................................................................................................................... 27 2.4.5 Mobile Network Operators ............................................................................................................ 28 2.4.6 Mobile Device Manufacturers ....................................................................................................... 28 2.4.7 Software Providers ........................................................................................................................ 29 2.4.8 Trusted Third Parties ..................................................................................................................... 29 2.4.9 Merchants ...................................................................................................................................... 29 2.5 Classification of Mobile Payment Research ....................................................................... 30 2.5.1 Research Themes ........................................................................................................................... 34 2.5.2 Consumer Adoption ...................................................................................................................... 34 2.5.3 Technology .................................................................................................................................... 35 2.5.4 Mobile Payment Ecosystem .......................................................................................................... 36 2.6 Review of Conceptual / Theoretical Approaches to Mobile Payment Research ............ 41 2.6.1 Frameworks in the Mobile Payment Ecosystem ........................................................................... 44 2.6.2 Dominant Frameworks and Merchant Adoption ........................................................................... 45 2.7 Review from Sub-Saharan Africa ....................................................................................... 51 2.7.1 Issues Discussed ............................................................................................................................ 51 2.7.2 Conceptual Approaches .............................................................................................................. 53 2.7.3 Methodological Approaches ....................................................................................................... 53 2. 8 Identified Research Gaps ................................................................................................... 56 University of Ghana http://ugspace.ug.edu.gh x 2.9 Chapter Summary ................................................................................................................ 58 CHAPTER THREE ............................................................................................................ 59 POTENTIAL BENEFITS OF MOBILE PAYMENTS IN DEVELOPING COUNTRIES ............................................................................................................................................ 59 3.1 Chapter Overview ................................................................................................................ 59 3.2 Benefit at the National Level ............................................................................................... 59 3.3 Potential Benefits of Mobile Payments to the Merchant Firm ......................................... 61 3.3.1 Operational Benefits ...................................................................................................................... 64 3.3.2 Strategic Benefits .......................................................................................................................... 65 3.3.3 Organisational Benefits ................................................................................................................. 67 3.4 Chapter Summary ................................................................................................................ 67 CHAPTER FOUR .............................................................................................................. 69 THEORETICAL FOUNDATIONS ................................................................................... 69 4.1 Chapter Overview ................................................................................................................ 69 4.2 An Overview of Rational Choice Theory ........................................................................... 69 4.2.1 Compositions of Rational Choice Theory ..................................................................................... 70 4.2.2 Assumptions of Rational Choice Theory ....................................................................................... 72 4.3 Application of Rational Choice Theory in Information Systems ..................................... 73 4.4 Rational Choice in Relation to Merchant Adoption of Mobile Payment ........................ 73 4.5 Criticism of Rational Choice Theory .................................................................................. 75 4.5.1 Why Rational Choice Theory ........................................................................................................ 75 4.6 An Overview of Technology Affordance Theory .............................................................. 76 4.6.1 Dimensions of Technology Affordance Theory ............................................................................ 76 4.6.2 Components, Structure and Assumptions of Technology Affordance .......................................... 77 4.7 Application of Technology Affordance Theory in Information Systems ........................ 81 University of Ghana http://ugspace.ug.edu.gh xi 4.8 Mobile Payments in Relation to Affordance Theory ........................................................ 83 4.8.1 Information Accessibility .............................................................................................................. 84 4.8.2 Usability ........................................................................................................................................ 85 4.8.3 Reflection ...................................................................................................................................... 85 4.9 Why Technology Affordance Theory ................................................................................. 85 4.10 Chapter Summary .............................................................................................................. 86 CHAPTER FIVE ................................................................................................................ 87 CONCEPTUAL FRAMEWORK AND RESEARCH PROPOSITIONS .......................... 87 5.1 Chapter Overview ................................................................................................................ 87 5.2 Advancing the Arguments ................................................................................................... 87 5.3 Link between Research Propositions and Research Questions ........................................ 97 5.4 Chapter Summary .............................................................................................................. 100 CHAPTER SIX ................................................................................................................. 101 EMERGENCE OF MOBILE PAYMENT SYSTEMS IN GHANA: PAST, PRESENT AND FUTURE ................................................................................................................. 101 6.1 Chapter Overview .............................................................................................................. 101 6.2 A Brief Overview of Ghana ............................................................................................... 101 6.2.1 Background ................................................................................................................................. 102 6.3 An Overview of Mobile Payments in Ghana ................................................................... 103 6.4 Mobile Payment Adoption in Ghana ................................................................................ 105 6.5 Mobile Payment Ecosystem Systems in Ghana ............................................................... 107 6.5.1 Mobile Payment Regulations in Ghana ....................................................................................... 108 6.5.2 Mobile Payment System Products and Services .......................................................................... 109 6.5.3 Mobile Payment Streams and Delivery Channels ....................................................................... 111 6.5.4 Mobile Payment Firms (Merchandising) ..................................................................................... 113 University of Ghana http://ugspace.ug.edu.gh xii 6.4.5 Mobile Payment Interoperability ................................................................................................. 114 6.5.6 Banking Institutions .................................................................................................................... 116 6.5.7 Agents ......................................................................................................................................... 116 6.6 Challenges of Mobile Payments in Ghana ....................................................................... 117 6.7 Stimulating and Releasing Conditions of Mobile Payment Adoption in Ghana .......... 120 6.7.1 Releasing Conditions ................................................................................................................... 121 6.7.2 Stimulating Conditions Enabling Affordance ............................................................................. 122 6.8 Chapter Summary .............................................................................................................. 123 CHAPTER SEVEN .......................................................................................................... 125 RESEARCH METHODOLOGY ..................................................................................... 125 7.1 Chapter Overview .............................................................................................................. 125 7.2 Paradigm or Philosophical Assumptions ......................................................................... 125 7.3 Critical Realism as a Research Methodology .................................................................. 129 7.4 Research Design and Methods .......................................................................................... 131 7.4.1 Case study as a Research Method ............................................................................................... 132 7.4.2 Case Study Design....................................................................................................................... 136 7.4.3 Selecting Case Organisation ........................................................................................................ 136 7.4.4 Sampling Technique .................................................................................................................... 140 7.4.5 Reliability .................................................................................................................................... 141 7.4.6 Construct Validity ....................................................................................................................... 142 7.4.7 Internal Validity .......................................................................................................................... 142 7.4.9 External Validity ......................................................................................................................... 143 7.4.10 Data Collection Methods ........................................................................................................... 143 7.4.11 Unit of Analysis......................................................................................................................... 145 7.4.12 Mode of Data Analysis .............................................................................................................. 146 7.5 Data Analysis Approaches to Answer Research Questions ............................................ 147 7.5.1 Approach for Research Question One ......................................................................................... 147 University of Ghana http://ugspace.ug.edu.gh xiii 7.5.2 Approach for Research Question Two ........................................................................................ 148 7.5.3 Approach for Research Question Three ...................................................................................... 149 7.5.4 Approach for Research Question Four ........................................................................................ 151 7.6 Ethical Consideration of Study ......................................................................................... 153 7.7 Chapter Summary .............................................................................................................. 154 CHAPTER EIGHT ........................................................................................................... 154 EVIDENCE OF LEVERAGING MOBILE PAYMENTS AFFORDANCE: THE CASE OF GHANAIAN MERCHANT FIRMS .......................................................................... 154 8.1 Chapter Overview .............................................................................................................. 155 8.2 Sky World Products Ghana .............................................................................................. 155 8.2.1 Firm Profile ................................................................................................................................. 155 8.3. Addressing Company Needs ............................................................................................. 159 8.3.1 Decision-Making Path to Adopting Mobile Payment Platforms ................................................. 162 8.3.2 Enabling, Stimulating and Releasing Conditions for Merchant Interaction ................................ 164 8.3.3 Merchant Interaction with the Mobile Payment Platforms .......................................................... 165 8.3.4 Affordance and Constrains .......................................................................................................... 166 8.3.5 Outcome of Merchant Interaction with Mobile Payment Platforms ............................................ 169 8.3.6 Sumary of Case ........................................................................................................................... 170 8.4 Pelinam Marketing Solutions ............................................................................................ 171 8.4.1 Firm Profile ................................................................................................................................. 171 8.4.2 Decision-making Path to Adopting Mobile Payment Platforms.................................................. 174 8.4.3 Merchant Interaction with the Mobile Payment Platforms .......................................................... 175 8.4.4 Enabling, Stimulating and Releasing Conditions for Merchant Interaction ................................ 176 8.4.5 Affordance and Constraints ......................................................................................................... 177 8.4.6 Outcome of merchant Interaction with Mobile Payment Platforms ............................................ 179 8.4.7 Summary of Case ........................................................................................................................ 180 8.5 Albrandz Company Limited ............................................................................................. 181 University of Ghana http://ugspace.ug.edu.gh xiv 8.5.1 Firm Profile ................................................................................................................................. 181 8.5.2 Management Team ...................................................................................................................... 182 8.6 Addressing a Company Need ............................................................................................ 182 8.6.1 Decision-making Path in Adopting Mobile Payment Platforms.................................................. 184 8.6.2 Merchant Interaction with the Mobile Payment Platforms .......................................................... 184 8.6.3 Affordance and Constraints ......................................................................................................... 185 8.6.4 Enabling, Releasing and Stimulating Condition for Mobile Payment Affordance ...................... 187 8.6.5 Outcome of Merchant Interaction with Mobile Payment Platforms ............................................ 187 8.4.7 Summary of Case ........................................................................................................................ 189 8.7 Chapter Summary .............................................................................................................. 191 CHAPTER NINE .............................................................................................................. 193 ANALYSIS, DISCUSSIONS AND FINDINGS ............................................................. 193 9.1 Chapter Overview .............................................................................................................. 193 9.2 Merchant Decision Pathways and the Influencing Factors in Adopting Mobile Payment Platforms (RQ1) ....................................................................................................................... 193 9.2.1 Rational Choice (Risk /Utility Trade-off).................................................................................... 194 9.2.2 Strategic Decision........................................................................................................................ 196 9.2.3 Experimental Decision ................................................................................................................ 197 9.3 Affordances and Constraints Mobile Payment Platforms Provide Merchants (RQ2) 200 9.3.1 Performance monitoring .............................................................................................................. 205 9.3.2 Facilitating business development ............................................................................................... 206 9.3.3 Detecting fraud ............................................................................................................................ 207 9.3.6 Constraints ................................................................................................................................... 209 9.4 Outcome of Leveraging Mobile Payment Affordances (RQ3) ....................................... 213 9.4.1 Strategic Benefits ........................................................................................................................ 216 9.4.2 Operational Benefits .................................................................................................................... 217 9.4.3 Transformational Benefits ........................................................................................................... 218 9.4.4 Managerial Benefits .................................................................................................................... 219 University of Ghana http://ugspace.ug.edu.gh xv 9.4.5 Organisational Benefits ............................................................................................................... 221 9.5 The Enabling, Stimulating and Releasing Conditions that Affect the Benefits Afforded by Mobile Payment Platforms to Merchants (RQ4) ............................................................. 224 9.5.1 Enabling Conditions .................................................................................................................... 224 9.5.2 Stimulating Conditions ................................................................................................................ 234 9.5.3 Releasing Conditions ................................................................................................................... 243 9.6 Chapter Summary .............................................................................................................. 245 CHAPTER TEN.............................................................................................................. 249 SUMMARY CONCLUSIONS, CONTRIBUTIONS AND FUTURE RESEARCH DIRECTIONS ................................................................................................................... 249 10.1 Chapter Overview ............................................................................................................ 249 10.2 Research Summary and Major Findings ....................................................................... 249 10.3 Research Contributions and Implications ..................................................................... 247 10.3.1 Contributions to Research ...................................................................................................... 247 10.3.2 Contribution to Practice ......................................................................................................... 249 10.3.3 Contribution to Policy ............................................................................................................. 251 10.4 Directions for Future Research ..................................................................................................... 252 REFERENCES ................................................................................................................. 254 APPENDICES .................................................................................................................. 294 Appendix A: Interview Guide ................................................................................................. 294 I. Background Information for Managers ............................................................................. 294 II. Choice of Mobile Payment Platforms ................................................................................ 294 III. Enabling / Stimulating / Releasing Conditions ............................................................... 295 IV. Technology Affordances and Constraints ....................................................................... 295 V. Benefit Outcomes................................................................................................................. 296 University of Ghana http://ugspace.ug.edu.gh xvi VI. Employees who Interact with Mobile Payment Platforms ............................................. 296 Appendix B: Report on Post-Study Evaluation and Industry Engagement ....................... 297 Apendix C: Sample Engagements and Exchanges with Respondents to Get Access ........ 302 Appendix D: Ethical Clearance .............................................................................................. 305 Appendix E: Out-put of Thesis ............................................................................................... 307 Appendix F: Summary of findings ......................................................................................... 309 University of Ghana http://ugspace.ug.edu.gh xvii LIST OF FIGURES Figure 2. 1. Demonstration of scanning a QR Code ........................................................... 23 Figure 2. 2. Demonstration of NFC. ................................................................................... 24 Figure 2. 3. Demonstration of fingerprint technology. ....................................................... 25 Figure 2. 4: Mobile Payment Value Chain ......................................................................... 30 Figure 2. 5: Distribution of Journal Article by year ........................................................... 33 Figure 2. 6: Distribution of Articles by Research Themes ................................................. 33 Figure 4. 1: Affordance Dimensions .................................................................................. 77 Figure 4.2: Affordance structure ......................................................................................... 77 Figure 5. 1: Mobile payment affordances and benefit framework. .................................... 99 Figure 7. 1: Components of Data Analysis ....................................................................... 147 Figure 7.2: Step by Step Approach to Data analysis for Research Questions .................. 153 Figure 8. 1: Sky World Products Process Flow Diagram ................................................. 158 Figure 8. 2: Sky World Products Organisational Chart .................................................... 158 Figure 8.3: Evidence of Merchant Interaction with Mobile Payment Case C .................. 185 Figure 9.1: Data abstraction regarding merchant choice-path of mobile payments ........ 194 Figure 9.2: Data abstraction regarding mobile payment affordances ............................... 204 Figure 9. 3: Cross-case abstraction of mobile payment platforms constrains .................. 210 Figure 9.4: Cross abstraction for mobile payment benefits .............................................. 214 Figure 9.5: Cross abstraction for mobile payment benefit (cont’d) .................................. 215 Figure 9. 6: Cross abstraction for enabling conditions ..................................................... 226 Figure 9. 7: Cross abstraction for stimulating conditions ................................................. 236 Figure 10.1: Post-study framework of how mobile payments afford or constrain benefits to merchants ...................................................................................................... 246 University of Ghana http://ugspace.ug.edu.gh xviii LIST OF TABLES Table 2. 1 Summary of Research on Mobile Payment ....................................................... 39 Table 2. 2 Research Conducted from Merchant Perspective .............................................. 50 Table 2. 3 Sample Studies from Sub-Saharan Africa Perspective ...................................... 55 Table 3. 1 Mobile Payment Benefit Dimensions ................................................................ 64 Table 5. 1 Research Propositions in this Study .................................................................. 97 Table 6. 1 Mobile Money Transactions in Ghana from 2014 to 2017 ............................. 111 Table 6.2 Mobile Banking Transactions between 2015-2017 .......................................... 111 Table 7. 1 Summary Case Profile .................................................................................... 140 Table 7.2 Detailed Data Collection Methods, Timelines and Durations .......................... 145 Table 8. 1 Evidence of Merchant Interaction with Mobile Payments Case A ................. 166 Table 8. 2 Evidence of Merchant Interaction with Mobile Payment Case B .................. 176 Table 8. 3 Summary of Cases findings ............................................................................. 191 Table 9. 1 Factors Influencing Merchant Decision Pathways to Mobile Payment Adopting .......................................................................................................................................... 195 Table 9. 2 Cross-case Analysis of Merchant Adoption Decision-path to Mobile Payment Platforms ........................................................................................................................... 198 Table 9. 3 Summary of Merchant Decision Making Path in Adopting Mobile Payment Platforms from a Developing Country Context ................................................................ 199 Table 9. 4 Mobile Payment Platforms Affordances ......................................................... 202 Table 9. 5 Cross-Case Analysis of Mobile Payment Platforms Affordances and Constraints .......................................................................................................................................... 205 Table 9. 6 Mobile Payment Platforms Constraints ........................................................... 209 Table 9.7 Summary of Mobile Payment Platforms Affordances and Constraints ........... 212 Table 9. 8 Cross-case Analysis of Mobile Payment Platforms Actualisation Outcomes (benefits) ........................................................................................................................... 215 University of Ghana http://ugspace.ug.edu.gh file:///C:/Users/Michael%20Joylove/Desktop/Fully%20proofread%20and%20eddited%20%20Eunice%20Yeboah%20Afeti%20Thesis%20version%205.4.9%20Dr%20Budu%20(1)%20(1).docx%23_Toc106135594 xix Table 9. 9 Summary of Mobile Payment Platforms Affordance Actualisation Outcomes (Benefits) from a Developing Country Context ............................................................... 223 Table 9. 10 Enabling Conditions ...................................................................................... 224 Table 9. 11 Cross-case Analysis of Enabling, Stimulate and Release Conditions for Affordance Perception and Actualisation ......................................................................... 226 Table 9. 12 Summary of Enabling Conditions of Mobile Payment Platforms Affordance Perception from A Developing Country Context ............................................................. 233 Table 9. 13 Stimulating Conditions .................................................................................. 234 Table 9. 14 Summary of Stimulating Conditions of Mobile Payment Platforms Affordance Actualisation from a Developing Country Context .......................................................... 243 Table 9. 15 Summary of Releasing Conditions of Mobile Payment Platforms Affordance Actualisation from A Developing Country Context ......................................................... 245 Table 10. 0-1 Summary Findings for Research Objectives .............................................. 241 University of Ghana http://ugspace.ug.edu.gh 1 CHAPTER ONE INTRODUCTION 1.1 Research Background Merchant adoption of mobile payment platforms is critical in market development for mobile payments in Africa (Park et al., 2019; Lee et al., 2019; Verkijika, 2020; Abebe & Lessa, 2020; Daragmeh et al., 2021; Rafdinal & Senalasari, 2021). Extant literature has validated that the COVID-19 global pandemic is reshaping the market outlook for payments in Africa and how merchants and consumers respond (Sreelakshmi & Prathap, 2020; Pandey & Pal, 2020; Lee et al., 2019 Daragmeh et al., 2021; Rafdinal & Senalasari, 2021). The pandemic has also driven a significant change in consumer and merchant behaviours that will continue to exist, even after the post-COVID-19 era. Globally businesses and people have had to adjust to new ways of life, work, consumption and payment of bills (Sreelakshmi & Prathap, 2020; Pandey & Pal, 2020; Park et al., 2019; Lee et al., 2019; Verkijika, 2020; Abebe & Lessa, 2020). Mobile payment suddenly assumed critical importance in developing countries and played a crucial role in the pandemic situation, making mobile payment the preferred choice of payment for both consumers and merchants (De-Girancourt et al., 2020; Pandey & Pal, 2020; Samantha, 2020). Several scholars (Liébana-Cabanillasa & Lara-Rubio, 2017; Liébana-Cabanillas, Ramos de Luna & Montoro-Ríos, 2017; Dahlberg et al., 2015; Pham & Ho, 2015) have described mobile payments as convenient, safe and simplified payment transactions that use a mobile device. Mobile payment as digital innovation redefines opportunities for merchants and service providers (Souiden, Ladhari & Chiadmi, 2019). Again, it is becoming an essential tool for mobile commerce, driving payment dynamics and pushing merchants to redefine their business models. University of Ghana http://ugspace.ug.edu.gh 2 In addition, mobile payments are helping merchants derive a significant value that improves efficiency and organisational benefit (Iman, 2018; Pantano & Priporas, 2016). Research across SSA countries indicates that mobile payments are making significant contributions to improving the rural poor's livelihoods and, in particular, their socio-economic well-being. There is evidence that mobile payments, especially peer-to-peer transfers, are helping in the alleviation of vulnerability, which allows consumption and risk-sharing mechanisms (Boateng, 2011; Jagun, Heeks &Whalley, 2007). Further, mobile payment has provided new ways of doing business and has shaped how monetary transactions are done (Ahmad et al., 2020). For instance, an individual can use mobile money to make payments and perform other financial transactions, including peer-to-peer mobile money transfers, mobile or person-to-business payments for goods and services (bill and retail payments), mobile banking deposits, loans, and store financial value. The relevance and enormous potential that mobile payments present have led to an upsurge in academic and practitioner literature (Guo & Bowman, 2016; Chan, Teoh, Yeow & Pan, 2019). Despite the myriad of research on mobile payments, there exist a paucity of research from the merchant’s perspective on mobile payments platforms adoption, especially understanding comprehensively the factors that influence merchant adoption of mobile payment aside from risk-utility/ trade-off (Dahlberg et al., 2015). Existing literature on mobile payment has explored and conceptualised the consumer perspective of mobile payment, technical dimensions that affect consumer intentions to adopt mobile payments and mobile payment ecosystem, and security and risk dimensions of mobile payments (Liébana-Cabanillasa & Lara-Rubio, 2017; Miao & Jayakar, 2016; Madan & Yadav, 2016; Abrahão, Moriguchi & Andrade, 2016). Despite the usefulness of these studies to mobile payment research, the extant literature on mobile payment has failed to account for the University of Ghana http://ugspace.ug.edu.gh 3 complexities involved in decision-making and other mechanisms that can influence merchant decisions to adopt a particular technology at the firm level. It may not be surprising for merchants to consider mechanisms other than risk or benefit to influence the choice path to adopt mobile payment platforms (Li, Zhang & Sarathy, 2010). Therefore, it is essential to comprehensively understand strategic and non-strategic factors that can influence the merchant's path to adopting mobile payment platforms aside from utility risk trade-offs (Téllez & Zeadally, 2017; Wu, Liu & Huang, 2017). Thus, understanding the strategic and non-strategic factors that influence the merchant's path to adopt mobile payment platforms will give a comprehensive understanding of the complexities involved in merchant decision marking and factors that influence merchant decision to adopt mobile payment platforms at the firm level. In addition, the literature on merchant adoption of mobile payment platforms has theoretically not explained how merchant interaction after mobile payment adoption affords benefit to the merchant’s businesses. The literature has not clarified whether the technology's usability or use enables productivity gains for merchant businesses. How the technology (mobile payment) contributes and affords the merchant benefits at the firm level has not been theoretically explained (Lim, Kim, Hur, & Park, 2019). Though some existing studies have attempted to explain some benefits generated by mobile payment technology, there is a shortfall in explaining the technology's contributory mechanisms; there is little explanation of how the technology (mobile payment platforms) successfully generates benefits (Du, 2018; Boateng et al., 2014; Bang et al., 2013). The value creation literature demonstrates that technologies are more likely to create benefits and higher performance in organisations (Casadesus-Masanell & Zhao, 2013; Amit & Zott, 2001). Nevertheless, organisational-level technology application can lead to organisational value creation where University of Ghana http://ugspace.ug.edu.gh 4 this relationship is mediated by environmental dynamism and technological factors (Williams, Roderick, Davies & Clement, 2017; Liu, Kauffman & Ma, 2015). This unexplained phenomenon draws attention to questions that existing studies have failed to answer. Furthermore, current studies have assumed that an organisation's actions and strategic activities create benefits and, as such, have not given much attention or premium to the material properties of technologies in their studies, ignoring the relational, emergent, and shifting capacity realised through the association of human and the material (Kim, Shin, & Kwon, 2012). From the discussions above, it is essential to understand the conditions that enable, stimulate, or constrain the benefits of merchants' mobile payment platforms' adoption in their transactions. These conditions are worth explaining to facilitate the replication of successes and minimise unintended consequences of the technology. Therefore, this study will help explain the merchant decision-making path to adopting mobile payment platforms and how mobile payment platforms afford or constrain benefits to the merchant (Chan et al., 2019; Sharma et al., 2019). More importantly, mobile payment is making many waves across industries like banking, agriculture, insurance, health, and commerce. For example, in commerce, businesses are trying to leverage mobile payment to support new business models, enhance business transactions and transform market mechanisms to facilitate a new business climate (Guo & Bouwman, 2016). In Ghana, for example, some businesses like big retailers, governmental services, institutions, restaurants, fashion shops and small retailers have strategically started to leverage mobile payment platforms to ensure their businesses' relevance, sustainability, growth and development, especially in the COVID 19 era (Pandey & Pal, 2020; Gomber, Kauffman, Parker & Weber, 2018; Oliveira, Thomas, Baptista & Campos, 2016). Merchants leveraging mobile payments make it very important to understand merchant involvement in University of Ghana http://ugspace.ug.edu.gh 5 the mobile payment ecosystem. These examples of merchant adoption in Ghana make it more relevant to understand how merchant interaction with the technology after its adoption affords the merchants opportunities to derive business benefits (Chan et al., 2019). Therefore, this research will employ the theoretical foundation of rational choice and affordance theory to explore factors that influence the merchant's path to adopting mobile payment, the benefits the technology affords the merchant, and the enabling, stimulating and releasing condition that affects the benefit derived from mobile payment technology adoption and use. 1.2 Research Problem Extant literature on mobile payments points to four main knowledge gaps in the mobile payment literature. The first knowledge gap is based on a lack of studies from the merchant perspective; most studies on mobile payments focus largely on two issues: technology (de Reuver, & Ondrus, 2017; Gannamaneni et al., 2015; de Reuver et al., 2015) and the consumer (Hsiao, 2019; Johnson, Kiser, Washington & Torres, 2018; Liébana-Cabanillas, Ramos de Luna & Montoro-Ríos, 2017; Dahlberg et al., 2015). These studies are largely based on technology acceptance models and other adoption theories and use traditional constructs such as ease of use, utility, trust, security, privacy as well as behavioural intention (Hsiao, 2019; Fan, Shao, Li, & Huang, 2018; Ramadan & Aita, 2018; Williams et al., 2017). A consensus among top scholars in mobile payment research (e.g. Guo, & Bowman, 2016; Dahlberg et al., 2015; Liébana-Cabanillas, Slade & Dwivedi, 2016; Hedman & Henningsson, 2015; Staykova & Damsgaard, 2015) suggests that mobile payments are a typical multi-sided market and a form of a business ecosystem which consists of different groups of participants including customers, merchants, payment intermediaries, financial institutions, mobile communication network operators, hardware and software providers and for that matter, the active development of mobile payments requires a focus on all University of Ghana http://ugspace.ug.edu.gh 6 potential parties in the ecosystem (Gomber et al., 2018; Du, 2018; Qasim & Abu-Shanab, 2016). They pointed out that an investigation of consumer adoption in isolation will not produce innovation in mobile payment studies due to the complexity of the mobile payment phenomenon. Therefore, these scholars, including Dahlberg et al. (2015), have called for future research on mobile payment to focus on issues regarding merchant adoption of mobile payment and take into consideration other decision pathways influencing mobile payment platforms' adoption decision of merchant, other than risk/ utility trade-off; otherwise, the lack of research on same could create a gap between practice and academia (Hsiao, 2019; Dahlberg et al., 2015). To date, however, this gap still exists in the literature. Encouragingly, there exist some mobile payment studies from merchant perspective. Such studies have investigated the inhibitors and facilitators of mobile payment systems by Australian businesses (Teo, Fraunholz & Unnithan, 2005) and the determinants of merchant adoption intentions (Mallat &Tuunainen, 2008). Others have also examined the possible impact of market drivers and organisational enablers on merchant adoption of mobile payment (Lai & Chuah, 2010). These studies suggest a skewness towards understanding the non-strategic pathways (factors) that influence merchant adoption decision of mobile payment systems. Though insightful, these studies do not provide a comprehensive understanding of the strategic and non-strategic factors that could influence mobile payment platforms' adoption decision pathways of merchant. Meanwhile, firm-level technology adoption suggests a complicated adoption process influenced by several other factors aside from utility/risk trade-offs. Consequently, scholars have called for future research into the strategic factors that influence mobile payment platforms' adoption decision pathways of merchant (Li, 2018; Iman, 2018; Bouwman, Nikou & de Reuver, 2019; Chin, Harris & Brookshire, 2018; Gao & Waechter, 2017). Therefore, while we are aware of the non- strategic factors, we need to explain the strategic factors to obtain a comprehensive University of Ghana http://ugspace.ug.edu.gh 7 understanding of factors that influence mobile payment platforms' adoption decision pathways of merchant. The second knowledge gap stems from how theorisation attempts in mobile payment research are skewed towards behavioural issues such as performance expectation, effort expectation, social influence and perceived risk to explain the reasons for mobile payment adoption (Abrahão et al., 2016; Oliveira et al., 2016; Slade, Dwivedi, Piercy & Williams, 2015). The studies involved tend to make deterministic explanations about the effects of IT on human behaviours and organisational outcomes (Cabanillas et al., 2017). Such explanations fail to provide a deeper understanding and richer conceptualisation of how merchants interact with, identify and actualise the action possibilities or affordances that accompany mobile payment systems. These affordances and their attendant constraints have the potential to influence the outcomes that a merchant can achieve upon the adoption of mobile payment systems and even the unintended consequences (Majchrzak & Markus, 2013). Dahlberg et al. (2015) thus suggested that the theoretical basis for future research in mobile payment must be strengthened by adopting theories from other disciplines rather than those already applied in IS, such as the Technology Acceptance Model (TAM) and the Unified Theory of Acceptance and Use of Technology (UTAUT). It is worth noting that merchant adoption of mobile payment technology involves the merchant interacting with the technology, which produces certain affordances, influencing adoption outcomes. Therefore, there is a need to explain, from an affordance perspective, merchants’ use of mobile payment systems and their related outcomes. The third knowledge gap relates to the need to explain the strategic and non-strategic outcomes of actualising mobile payment affordances after adoption. This gap relates to a general need to explain the outcomes of the affordance actualisation process (Strong et al., University of Ghana http://ugspace.ug.edu.gh 8 2014). Specifically, we need research that focuses “on what outcomes occur and what goals are achieved due to the actualisation process” of affordances (Pozzi, Pigni, & Vitari, 2014, p. 9). This is to say that there is a need for studies to focus on the exact outcomes that occur and the ultimate goals that are achieved as a result of the affordance actualisation process (Pozzi, Pigni, & Vitari, 2014, p. 9). To date, the outcomes of mobile payment adoption, use and affordances remain un-researched. Encouragingly, some scholars have chartered a course for future research efforts in this area. For example, a study published by the Journal of Information Technology for Development (Boateng, 2016) focused on the outcomes of e- commerce capabilities. The study highlighted how businesses could orient resources to create e-commerce capabilities and achieve e-commerce benefits. The study identifies two forms of benefit, namely, strategic and operational (i.e. performance improvement directly resulting from adopting e-commerce), e.g. operational benefit relates to the reduction in transactional costs, enhanced coordination, and improved relationships with customers and strategic benefit (i.e. the “extended customer base, increased customer loyalty as well as retention of trading partners). Despite the value of this study, its research framework fails to theorise the outcomes of mobile payment systems specifically, which are pretty different from e-commerce technologies. Therefore, future research could test Boateng’s (2016) benefit framework within the mobile payment system domain. Fourthly, existing studies have called for future research to understand the affordances of a specific technology in a specific context to help better predict how the technology will affect people’s way of activities, actions, and relationships (Van Osch & Mendelson, 2011; Hong et al., 2014; Andoh-Baidoo, 2017). Such studies should have a restricted focus on the ‘technological artefact to preserve affordances’ relational nature' (Pozzi et al., 2014, p. 11). A contextually grounded study from the Sub-Sahara African perspective, for instance, is indeed necessary to help progress and coagulate the literature to help avoid leaky University of Ghana http://ugspace.ug.edu.gh 9 idiosyncrasies (Odoom & Kosiba, 2020). Contextually, Africa has begun capturing the imagination of scholars as an emerging market of new growth opportunities (George et al., 2016). Since affordances are context-specific, such an endeavour in mobile payment platforms research will help define the proper scoping of mobile payment platform concepts in different contextual settings (De Reuver et al., 2018). For example, studies have suggested that mobile payment services from developing markets are unlikely to penetrate developed economies with their developed financial markets and sophisticated telecom, merchant and consumer infrastructures (Dahlberg et al., 2015; Baabdullah et al., 2019; Duangphasuk, Thammarat & Kungpisdan, 2020). These studies have argued that there is the need to understand context-specific factors that could enable, stimulate and constrain the affordance generated from actors’ interaction with technology. Hence, there is a need for research into the enabling conditions, releasing conditions, and stimulating conditions that affect the affordances that emerge from merchants’ interaction with mobile payment systems. Moreover, in recent times, businesses in developing countries have begun to leverage mobile payment to their organisations' advantage irrespective of the challenges (Humbani & Wiese, 2018; Asongu & Boateng, 2018). In commerce, some Ghanaian businesses leverage mobile payments to build viable business models to sustain their businesses (Odoom & Kosiba, 2020; Evans & Pirchio, 2014). Furthermore, these merchant businesses in Ghana are leveraging mobile payment to create value that leads to competitive advantage through a low-cost, fast and high-quality service by addressing consumer needs (Senyo et al., 2019). These exposures help the merchants optimise internal processes to fundamentally rethink and change their business models (Odoom & Kosiba, 2020; Dahlberg et al., 2015; Loebbecke & Picot, 2015). The evidence of merchants leveraging mobile payments makes them a suitable case study for this research, and this is because the processes of leveraging University of Ghana http://ugspace.ug.edu.gh 10 mobile payments are ongoing. Thus, this study seeks a comprehensive understanding of the strategic and non-strategic reasons that could influence mobile payment platforms' adoption decision pathways of merchants and the enabling, stimulating and releasing conditions that affect the benefit afforded mobile payment platforms. To summarise it all, through its literature review, this study has identified four significant research gaps that it seeks to address. Among these are issue, theoretical and contextual gaps. First, aside from the utility/risk trade-offs, studies on merchant adoption of mobile payment platforms lack a clear, comprehensive understanding of the strategic and non- strategic reasons that could influence mobile payment platforms' adoption decision pathways of merchants. Therefore, there is a need to establish factors beyond the cost- benefit analysis that could significantly influence mobile payment platforms' adoption decision pathways of merchants (see Li, 2018; Iman, 2018; Dahlberg et al., 2015; de Reuver et al., 2015). Secondly, there is skewness of theorisation in the literature regarding merchant adoption of mobile payment platforms (Dahlberg et al., 2015). Scholars have, therefore, called for the theorisation of mobile payment platform affordances to explicitly include constraints, unintended and the undiscovered use of technology (Liébana-Cabanillasa & Lara-Rubiob, 2017; Majchrzak & Markus, 2013). Additionally, it is necessary to understand outcomes and the goals merchants attain in actualising affordance, especially at the firm level (Pozzi et al., 2014). Finally, from broader affordance theory, there is the need to understand affordance from a specific technology within a particular context (de Reuver et al., 2015). These gaps identified in the literature underpin the purpose of this study, which is to understand both the strategic and non-strategic reasons that could influence mobile payment platforms' adoption decision pathways of merchants aside from the utility/risk trade-offs University of Ghana http://ugspace.ug.edu.gh 11 and to developing a theoretical and practice-oriented framework that explains mobile payment platforms' adoption decision pathways of merchants and how these platforms afford or constrain benefits to merchants. The framework will help address the skewed theorisation in mobile payment adoption research, especially from the merchant perspective. Addressing these gaps is relevant because merchant adoption is critical to developing mobile payment research. This is because merchants are one of the most important stakeholders for the success of mobile payments in the mobile payment ecosystem (Dahlberg et al., 2015). 1.3 Research Purpose To address the gaps enumerated in the research problem, this study draws on rational choice theory and affordance theory (see Bygstad, Munkvold, & Volkoff, 2015) to explain merchants’ decision pathways and mobile payment platforms' affordances and constraints. This understanding will lead to a conceptualisation of a theoretical and practice-oriented framework that explains mobile payment platforms’ adoption decision pathways for merchants and how these platforms afford or constrain benefits to merchants in Ghana. The purpose of this research is, therefore, stated as follows: developing a theoretical and practice-oriented framework that explains mobile payment platforms' adoption decision pathways of merchants and how these platforms afford or constrain benefits to merchants. 1.4 Research Objectives In relation to the research purpose above, the research objectives of this study are outlined below: University of Ghana http://ugspace.ug.edu.gh 12 1. To describe the mobile payment platforms' adoption decision pathways of merchants in Ghana and the strategic and non-strategic influencing factors besides the risk/utility trade-off. 2. To explain the affordances and constraints of mobile payment platforms to merchants’ transactions in Ghana. 3. To determine the forms of benefits that mobile payment platforms afford merchants in Ghana. 4. To determine the enabling, stimulating and releasing conditions that influence the benefits afforded by mobile payment platforms to merchants in Ghana. The first research objective addresses the need to understand the mobile payment platforms' adoption decision pathways of merchants and strategic and non-strategic factors that influence these decision pathways besides utility/risk trade-offs (Hsiao, 2019; Dahlberg et al., 2015). For this research objective to be achieved, the study employed Rational Choice Theory to understand how merchants make decisions to adopt mobile payment platforms aside from risk /utility trade-offs. The second research objective addresses the need to provide a deeper understanding and richer conceptualisation of how merchants interact with, identify and actualise the action possibilities or affordances that accompany the mobile payment platforms (see Bygstad, Munkvold, & Volkoff, 2015). These affordances and their attendant constraints have the potential to influence the outcomes that a merchant can achieve upon the adoption of mobile payment platforms and even the unintended consequences (Majchrzak et al., 2016, p. 267; Majchrzak & Markus, 2013). To achieve the second objective, this study adopts the Affordances and Constraints Theory (see Bygstad, Munkvold, & Volkoff, 2015) to explain University of Ghana http://ugspace.ug.edu.gh 13 the affordances and constraints that the adoption and use of mobile payment platforms provide merchants. The third research objective combines the need for studies to take into consideration the strategic and non-strategic outcomes of actualising mobile payment affordances after adoption (Strong et al., 2014) and the specific need to focus "on what outcomes occur and what goals are achieved due to the actualisation process" of affordances (Pozzi, Pigni, & Vitari, 2014, p. 9), and the need to investigate the broad benefits of information system (IS) at the firm-level (Lee & Fedorowicz, 2018; Lee, 2016). To achieve the third research objective, the study reviewed the literature on mobile payment and IS benefits to conceptualise mobile payment platform benefits (see section 3.3). The review also appraised existing theorisation in explaining IS benefits and demonstrated its shortcomings in explaining IT artefacts' contribution to benefits, especially in the context of mobile payments (see section 4.7). Additionally, the theoretical review identified and adopted a conceptualisation of e-commerce benefits from Boateng (2016) and a further probe from enterprise systems for other potential types of benefits in a mobile payment platforms context. Therefore, based on the e-commerce benefits outlined by Boateng (2016), the study in section 9.3 followed the steps detailed in section 7.55 to analyse the case data to help achieve the third research objective. The fourth research objective relates to the need for future research to provide an understanding of the context-specific factors (de Reuver et al., 2015) that could enable, stimulate and constrain the affordances generated from actors' interaction with technology (Van Osch & Mendelson, 2011), such studies should have a restricted focus on the 'technological artefact to preserve affordances' relational nature' (Pozzi et al., 2014, p. 11). Since affordances are context-specific, such an endeavour in research on mobile payment University of Ghana http://ugspace.ug.edu.gh 14 platforms will help define the proper scoping of concepts in different contextual settings (Dahlberg et al., 2015; Baabdullah et al., 2019; Duangphasuk et al., 2020). To achieve this objective, through the contextual review (see sections 6.7.1and 6.7.2), the study identified conditions from the mobile payment ecosystem in Ghana that enable, stimulate and release affordances and constraints and other unintended consequences as merchants interact to actualise mobile payment platform's affordance. 1.5 Research Questions In relation to the research objectives above, the research questions of this study are outlined below: 1. What are the mobile payment platforms' adoption decision pathways of merchants in Ghana and the strategic and non-strategic influencing factors besides the risk/utility trade-off? 2. How do mobile payment platforms afford or constrain merchants' transactions in Ghana? 3. What forms of outcomes (benefits) do mobile payments platforms actualisation afford merchants in Ghana? 4. What enabling, stimulating and releasing conditions affect the benefits afforded by mobile payment platforms to merchants in Ghana? 1.6 Significance of the Research The significance of this study is three-fold: research, practice, and policy. First, regarding research, the study builds on Rational Choice Theory and Affordance and Constraints Theory to describe merchant mobile payment adoption decision pathways and influencing factors and how mobile payment platforms afford different forms of benefits to the merchants in their payment transactions. As established, this knowledge is lacking in University of Ghana http://ugspace.ug.edu.gh 15 previous literature and its pertinent for the furtherance of research in mobile payments platforms. Again, the study contributes to research in relation to context-specific theorising in IS literature. As identified in the research gap, there has been a persistent call for context- specific theorising, which has been cited as a significant undertaking in IS research (de Reuver et al., 2015; Dahlberg et al., 2015). From the research perspective, the study conceptualise the adoption-pathways "experimental pathway" as a new adoption- pathway beyond the rational and strategic adoption pathways as reported in existing mobile payment literature. Hitherto, previous studies have conceptualised the merchant adoption pathways of mobile payments as either a rational or strategic choice (Gao & Waechter, 2017). Secondly, from the practitioner's perspective, the significance of this study lies in conceptualising the complex and multi-level issues that merchants consider in the adoption decision in choosing mobile payment platforms. From a policy perspective, this study's empirical findings offer policymakers guidelines. The results explain that mobile payment's successful operation depends on appropriate policy and the regulatory milieu. The study explains the contextual factors and constraints of mobile payment adoption by merchants. Through the findings, policymakers, especially the government, can create enabling conditions to improve the merchant's long-term willingness to adopt mobile payments. Further, the government can develop policies geared toward expanding the prerequisite environmental factors that create the conditions for merchants to adopt and leverage mobile payments. The study suggests that the availability of prerequisite environmental factors encourages merchants to break out of their shells to adopt the new technology. Again, policymakers can use the findings to understand the factors that serve as constraints to merchant adoption of mobile payments and formulate University of Ghana http://ugspace.ug.edu.gh 16 policies geared towards eliminating obstacles and constraints for merchants to adopt mobile payments for government to achieve a cash-lite economy by 2024 (GHIPSS, 2020). 1.7 Chapter Outline This thesis is divided into ten different chapters. Chapter One, which is already covered, gives an outline of the study covering the research background, research problem, research purpose, objectives of the study, research questions, significance of the study and the research's organisation. Chapter Two reviews the literature relevant to the study and establishes the key concepts in mobile payments. In addition, the theories and models that form the foundation of mobile payment and their possible linkages are explored. Chapter Three examines the potential benefits of mobile payments. Chapter Four reviews the different theories underpinning the research. Literature on Rational Choice Theory and Affordance and Constraint Theory are reviewed to enable a possible understanding of strategic merchant decisions in leveraging mobile payments to create value in their business transactions. Based on the theoretical foundations of the study, Chapter Five explores the conceptual framework underpinning the study. The conceptual framework guided the research design, data collection methods and served as the data analysis and discussion mechanism. Chapter Six presents the study's context by examining enabling, stimulating, and releasing conditions that mobile payments platforms adoption afford merchants in Ghana. Chapter Seven focuses on the philosophical assumptions of the research and establishes the research methodology and the data collection methods and analysis employed by this research. Chapter Eight captures the case profiles and descriptions of the various merchants' cases. Chapter Nine deals with the data presentation, analysis of findings and discussions. Chapter Ten presents the research conclusions, the contribution to knowledge, practical implications of the research, the study's limitations and future research directions. University of Ghana http://ugspace.ug.edu.gh 17 University of Ghana http://ugspace.ug.edu.gh 18 CHAPTER TWO LITERATURE REVIEW 2.1 Chapter Overview After two decades of studies, there is significant research to understand the mobile payment phenomenon. Nevertheless, the research area is still developing. It is imperative to review the relevant literature to expedite the progression of knowledge and unearth new grounds in mobile payment research. Therefore, this chapter reviews existing literature on mobile payments to understand and map out the body of knowledge on mobile payments studies. The review is structured in eight distinct sections. The first section is an overview of mobile payments regarding the value-capturing process. The second section looks at the various mobile payment technologies and the digital infrastructure characteristics that affect merchants in the mobile payments space. The mobile payment value chain, its nature, the participants involved and their roles in the ecosystem are discussed in the third section. The fourth section discusses how literature for the review was obtained and how the themes were identified. The fifth, sixth and seventh sections respectively analyse and present the different issues, conceptual approaches and methodologies applied in mobile payment research from developed and developing countries' contexts. The final part summarises the existing literature and identifies the knowledge gaps to suggest future research direction. 2.2 Mobile Payment an Overview Conceptually, mobile payment is a new form of value transfer, similar to other payments; however, the point of difference is mobile devices as a medium (Pham & Ho, 2015). Again, mobile payments, similar to other forms of payment, have been broadly categorised into purchases and payments of bills (Liébana-Cabanillas & Lara-Rubio, 2017). First, as an instrument for purchase, mobile payments compete with traditional payments such as cash, University of Ghana http://ugspace.ug.edu.gh 19 cheques, credit cards and debit cards. Secondly, using mobile payments for bill payment enables access to account-based payment instruments such as money transfers, internet banking payments, direct debit assignments, or electronic invoice acceptance (Kung & Huang, 2017; Dahlberg et al., 2015). Existing literature has defined the concept of mobile payments from different perspectives. The varying perspectives in the definition of mobile payment may be linked to two separate but interrelated factors. Firstly, the mobile payment phenomenon is complex and involves several ambiguous and conflicting terminologies. This, as a result, influences researchers and practitioners to propose definitions from their perspective, depending on the technology, its objectives, the research focus, professional orientation, product and service involved and how the features are combined. For instance, in a mobile payment literature review, de Albuquerque, Diniz, and Cernev (2016) identified three different definitions of mobile payment. First, mobile payment can exhibit banking characteristics known as mobile banking. Secondly, it may have features and characteristics of payment transactions and is recognised as mobile payment. Thirdly, it may also be regarded as money with digital components, referred to as mobile money. The second factor is that the discussion around mobile payment has broadly been equated to mobile commerce or as a sub-set of e-commerce which provides a method for conducting practical and innovative payment. To facilitate mobile commerce transactions through non- banking channels (mainly retail) and extend the financial services to subscribers who are not profitable to be reached by formal and traditional financial service providers (Kung & Huang, 2017; Pandy, 2014). The third factor is that some researchers have conceptualised m-payments as mobile services that provide payment functionality in various scenarios. These scenarios include payment in stationary internet/electronic commerce, payment at University of Ghana http://ugspace.ug.edu.gh 20 vending machines often called point of sale (POS), payment to a person acting as a merchant or service provider (“manned POS”), and money transfer between consumers (de Kerviler, Demoulin & Zidda, 2016). Zhao (2013) and Ondrus and Pigneur (2006) argue that mobile payment is critical for business-to-consumer payment transactions because it is one of the essential building blocks of mobile commerce. It is essential because the business model in the mobile economy is based on a direct transaction. Hence, dependent revenue needs an adequate charging approach between service providers and users, making mobile payment vital (Sethi & Tafti, 2013; Osterwalder & Pigneur, 2010). In a recent study on mobile payment, Hsiao (2019) found that mobile technological innovations have brought many changes in the commercial environment, including the development of the internet and mobile networks into commercial channels and increasing automation and self-service orientation payment services. This study will adopt the conceptualisation of mobile payment by (Liébana-Cabanillas & Lara-Rubio, 2017). They define mobile payment as a payment transaction processing in which an individual or business uses mobile communication techniques in association with mobile devices for initiation, authorisation, or completion of payment. This definition considers the distinguishing characteristics that point to mobile payment as having strategic, participatory and operational functions. It also classifies mobile payment as a service and as an infrastructure for e-commerce and m-commerce delivery. Therefore, this study will evaluate the firm-level factors that influence merchants’ decision to adopt mobile payments aside from utility/risk trade-offs. In addition, the study will seek to explain how mobile payment platforms afford or constrain benefits for the merchants as they leverage mobile payment affordance to create value for organisational benefit. University of Ghana http://ugspace.ug.edu.gh 21 2.2.1 Mobile Payment Classifications Currently, literature broadly categorises mobile payments technology into remote payments and proximity payments (Agarwal et al., 2007). Remote payment allows a customer to purchase services, digital and physical goods. However, there are several methods used in the transaction process. The remote payment operates in the form of Short Message Service (SMS), direct billing, mobile internet, entering a bank account number on a mobile website, registering on a merchant’s website, such as Amazon and using an electronic wallet. On the other hand, proximity payments integrate mobile phones or mobile devices' contactless abilities to enable the process of payment. This is usually facilitated by Near Field Communication (NFC), where payment is made as the user passes the mobile next to the receiving terminal. This type of payment is common in the public transport industry (Guha, 2013; Zhao, 2013). As Zhao (2013) posits, mobile payments can further be classified based on transactions into peer-to-peer (P2P) payments, consumer-to-business (C2B) payments and business-to-business (B2B) payments. Also, the providers of mobile payments can be looked at from three perspectives: mobile network operator-centric, financial institutions, and third-party operators (Zhao, 2013). 2.3 Mobile Payment Technologies This section will discuss the various mobile payment technologies currently in the mobile payment market. As already mentioned, literature has primarily categorized mobile payments into remote and proximity. Remote payment uses technologies such as SMS and online (wireless). Proximity, on the other hand, uses technologies such as quick response codes (QR Codes), Near Field Communication (NFC), Magnetic Secure Transactions (MST), fingerprints and facial recognition and sound waves. There will be a demonstration in this review to show how merchants use mobile technologies. University of Ghana http://ugspace.ug.edu.gh 22 2.3.1 Short Message Service (SMS) SMS means paying for goods and services or products via a text message sent from a mobile device. The text message is delivered to the payment provider, and then the provider approves the transaction between the one purchasing the product or the service and the merchant (Duangphasuk et al., 2020). This payment technology follows the same process as standard SMS. Based on the customer's choice, the cost of the transaction is either added to the monthly phone bill or deducted from a prepaid balance by the mobile phone operator. SMS payments enable mobile phone users to safely, quickly and securely pay vendors, purchase products or services in real-time, and make deposits or send remittances. This payment technology is helping businesses leverage the strength of SMS payments to make life easier for their clients (Duangphasuk et al., 2020; Venkatesh, Morris, Davis & Davis, 2003). 2.3.2 Online (Wireless) Online payment is a payment process where a mobile payment transaction is done using a combination of one’s credit or debit card detail with wireless technology to conduct mobile payment transaction. This form of payment scenario is associated with mobile commerce (m-commerce). Pousttchi, Schiessler and Wiedemann (2009) define m-commerce as business transactions involving mobile communication technologies for service, initiation, agreement, or fulfilment. Similarly, online mobile payment can also relate to in-app payment, where an individual using this payment system uses their mobile phone through a mobile wallet similar to the physical wallet but in a virtual environment. In this payment approach, the individual registers their credit card or debit card details into the mobile payment app. Individuals can type their card payment details to conduct transactions instantly. Another example of online payments is connecting a card reader to one's University of Ghana http://ugspace.ug.edu.gh 23 smartphone. By utilising online technology, a smartphone and a card reader are connected so merchants can accept card payments (Karnouskos, 2004). 2.3.3 Quick Response Code (QR Codes) QR codes are a two-dimensional technology used to scan codes or barcodes generated by merchants. This payment system requires that mobile devices be camera-enabled to scan QR codes and an app to translate the code. Merchants usually offer QR code technology as a point of sales device terminal where customers scan to enable them to make payments. In contrast to the standard barcode, which can handle approximately a maximum of 20 digits, QR codes can manage about a hundred times more information. A single QR code can encode 7,089 characters into one symbol (Narayanan, 2012). The technology is regarded as a more beneficial and cost-effective solution because it is smartphone-enabled, and since smartphones are equipped with the internet, it eliminates passwords and authentication (Harini & Padmanabhan, 2013). Figure 2. 1 Demonstration of scanning a QR Code (Lee, 2014). 2.3.4 Near Field Communication (NFC) Near Field Communication (NFC) mobile payment is a noticeable phenomenon emerging in the payment industry, allowing consumers to change their smartphones as digital wallets. The NFC technology combines NFC radio frequency identification (RFID) with a smartphone (Duvaud-Schelnast & Born, 2016). This technology enables consumers to use University of Ghana http://ugspace.ug.edu.gh 24 their smartphones as contactless payment cards. For the technology to work effectively (e.g. smartphones and card readers), it must be equipped with an NFC chip Profis (2014) to exchange data when the two devices are placed close to each other. Compared to other wireless technologies embedded in the smartphones, such as Wi-Fi and Bluetooth, NFC has a shorter range of 4 to 10 centimetres and takes different forms, including identification, proximity payments, smart posters, and e-tickets (Profis, 2014; Coskun et al., 2013). Figure 2. 2 Demonstration of NFC (Profis, 2014). 2.3.5 Fingerprint Recognition Fingerprint technology is a process of payment technology that enables consumers to authenticate their payment using the touch of a fingerprint scanner linked to a payment file (Kumar & Ryu, 2009). The technology can scan and map to identify the fingerprint characteristics, register that user into a database, and create a template that verifies the user and keeps the identity for a future scan (Conti et al., 2009). Fingerprint features mean scanning the pattern of friction ridges and valleys on an individual’s fingertips (Kumar & Ryu, 2009). These unique patterns on a person’s fingertip are considered dependable because no two fingerprints are identical, to the extent that even identical twins do not have University of Ghana http://ugspace.ug.edu.gh 25 the same fingerprints. This payment technology is considered the most secure, reliable and legally authoritative identification method (Peiyan et al., 2015). Figure 2. 3 Demonstration of fingerprint technology (Profis, 2014). 2.4 Mobile Payment Value Chain An ecosystem from the literature is classified as a collection of organisations competing or working collaboratively to create value for the customer or the group as a whole or each group member. This could be in production, customer service or innovation (Gaur & Ondrus, 2012). The mobile payment ecosystem is a value chain collaboration characterized by high interdependency and interplay of actors. Each actor within the value chain has a specific role in the ecosystem (Pousttchi, 2008). Dahlberg et al. (2015) identified the major actors in the mobile payment service market as mobile payment service providers and their customers. A specific group of actors performing significant roles in the market include consumers, merchants, financial institutions and telecom operators. From the author's perspective, the actors can expand to include vendors of handsets, software, networks, and other technologies. However, Miao and Jayakar (2016) posit that the value chain of mobile payment comprises three major stakeholders. Mobile operators, financial service providers (such as banks and other financial institutions), and third-party payment service providers (such as Paypal). University of Ghana http://ugspace.ug.edu.gh 26 2.4.1 Specific Role in the Value Chain Each actor within the mobile payment value chain has a specific role. These actors' focus and objectives determine the extent of technologies and other resources mobilised into mobile payment services. This can direct how the market offers and uses these services (de Reuver et al., 2015), as outlined in figure 2.4. 2.4.2 Financial Institutions Financial institutions or banks provide accounting and settlement of payment transactions that seek to dominate the market with their operational models for mobile payment (de Reuver et al., 2015). The banks have a reputation for managing customers' accounts, making the banks credible and trustworthy. The banking institutions are regarded as leaders and experts in the payment industry and are the legally mandated issuer of payment methods. This offers a significant advantage concerning their role in mobile payment services (Omarini, 2018). Since most customers are familiar with traditional banking and already have their financial statements stored with several banks, this could influence their position in the mobile payment ecosystem to maintain leadership in the mobile payment market. Anecdotal evidence depicts that bank do not know much about mobile payment. Nevertheless, the banks are working hard to develop their payment apps or collaborate with other stakeholders to maintain their leadership in the payment market. Banks perceive mobile payment services' penetration within the payment industry as a significant opportunity to grow their brands and generate customer loyalty (Miao & Jayakar 2016). 2.4.3 Payment Processing Networks Payment processing networks are institutions and companies that intermediate between banks or financial institutions and individuals who adopt payment processing network instruments (e.g. merchants). Payment processing networks usually manage the agreements University of Ghana http://ugspace.ug.edu.gh 27 between adopters and their stakeholders. These institutions have well-proven security and established infrastructure (Schryen, 2015). Payment processing networks have demonstrated unlimited interest in mobile payment marketing by investing in new payment ventures to expand their role in the financial service sector (Bertilsson & Hult, 2013). Due to the changing face of payment, where payments are moving from card to mobile, their strategy is to strengthen their brand position and reap economic benefits in this emerging mobile payment market. 2.4.4