Investigating the prospects and challenges of a cashless economy in Ghana

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It is conventional knowledge that cash has been the most common medium of exchange (Manda and Margana, 2019). However, in line with technological advancements, cashless economies have emerged (Otoo, 2020). Based on this, scholars have conducted several studies to examine the benefits and challenges of the cashless system in most economies. While this is commendable, research on the cashless system in the Ghanaian context is scant. Thus, this study aimed to investigate the benefits associated with the cashless system, its challenges in the Ghanaian context, Ghana’s readiness to adopt the cashless system and the strategies Ghana can adopt to facilitate the efficiency of transition to a cashless economy. The study adopted a mixed methodology and an expert judgement estimation technique to collate all-encompassing data which captured the research questions. The study adopted convenience and simple random sampling techniques to gather information from 20 banks, 71 owners of SME’s, two seasoned Bank of Ghana officials and 15 ordinary Ghanaian citizens. The findings suggested that the cashless system is convenient, reduces long queues in banks and reduces risks associated with bacteria transmission and losing physical cash to robbery attacks and fire outbreaks. The study further indicated that the cashless system is expensive and prone to cyber-attacks and internet issues. The study revealed that Ghana is generally ready to transition into a cashless economy. Based on the results, the study recommends that Government has a crucial role in collaborating with the network service providers to reduce the charges associated with the cashless system. The study also recommended that the Government has a crucial role in creating more awareness about the cashless system in Ghana.
Undergraduate thesis submitted to the Department of Business Administration / Computer Science, Ashesi University, in partial fulfillment of Bachelor of Science degree in Business Administration / Computer Science / Management Information Systems, May 2021
cashless system, mobile money, electronic payments, SMEs