Analysis of Factors Influencing the National Payment Switch Adoption in Sierra Leone

Abstract

This study examines the factors influencing the adoption of the National Payment Switch in Sierra Leone, focusing on trust, transaction costs, government support, and financial institution support as independent variables, and intention to use as the dependent variable. Drawing on six theoretical models, including unified theory of acceptance and use of technology and Technology-Organization-Environment, a mixed-methods approach was employed to analyze data from 623 participants across banks, fintech companies, and regulatory bodies. Partial least squares structural equation modeling, regression, and thematic analysis revealed transaction cost and trust as the strongest predictors of intention to use. Mediation analysis confirms that institutional credibility strengthens the effects of affordability and trust on adoption. At the same time, financial services and government support played complementary roles. Additionally, performance expectancy, facilitating conditions, organizational readiness, regulatory support, and technological infrastructure were key enablers that influence adoption. Conversely, security concerns, limited digital literacy, and infrastructural gaps emerged as significant barriers to progress, particularly in rural areas where awareness levels are significantly lower. The study recommends targeted awareness programs, capacity-building initiatives, public-private partnerships, and adaptive regulation that align with local realities. These findings offer actionable insights for policymakers and financial institutions, thereby contributing to the existing literature on digital payments and financial innovation in sub-Saharan Africa. This study examines the factors influencing the adoption of the National Payment Switch in Sierra Leone, focusing on trust, transaction costs, government support, and financial institution support as independent variables, and intention to use as the dependent variable. Drawing on six theoretical models, including unified theory of acceptance and use of technology and Technology-Organization-Environment, a mixed-methods approach was employed to analyze data from 623 participants across banks, fintech companies, and regulatory bodies. Partial least squares structural equation modeling, regression, and thematic analysis revealed transaction cost and trust as the strongest predictors of intention to use. Mediation analysis confirms that institutional credibility strengthens the effects of affordability and trust on adoption. At the same time, financial services and government support played complementary roles. Additionally, performance expectancy, facilitating conditions, organizational readiness, regulatory support, and technological infrastructure were key enablers that influence adoption. Conversely, security concerns, limited digital literacy, and infrastructural gaps emerged as significant barriers to progress, particularly in rural areas where awareness levels are significantly lower. The study recommends targeted awareness programs, capacity-building initiatives, public-private partnerships, and adaptive regulation that align with local realities. These findings offer actionable insights for policymakers and financial institutions, thereby contributing to the existing literature on digital payments and financial innovation in sub-Saharan Africa.