Introduction of Electronic Transaction Levy in Ghana: Impact on Mobile Technology Adoption in the Banking Sector

Emmanuel Assifuah-Nunoo () and Abor Yeboah ()
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Emmanuel Assifuah-Nunoo: Florida Atlantic University
Abor Yeboah: Walter Sisulu University

A chapter in Impacting Society Positively Through Technology in Accounting and Business Processes, 2025, pp 451-477 from Springer

Abstract: Abstract The paper re-examined the influence of electronic transaction levy on consumer’s perception of electronic transaction adoption, particularly, in the banking sector in Ghana, after the tax being pegged at 1% and threshold of Ghc100.00 removed. The study sought to analyze relative advantage, perceived risk, electronic transaction levy (e-levy), perceived ease of use, and perceived usefulness as indicators that affect electronic transaction adoption in the banking sector in Ghana. To obtain this, the study employed quantitative method. Primary data were obtained over a period of 6 months, from 20th January to 25th August 2023, by serving online questionnaires. Using a sample of 648, path analysis was examined by the use of structural equation model (SEM). Perceived ease of use and perceived usefulness nexus; perceived risk and perceived usefulness nexus; perceived usefulness and adoption of mobile banking nexus; and perceived risk and adoption of mobile banking nexus were all revealed to be positive. However, we found a negative relationship between relative advantage and perceived usefulness of mobile banking as well as between e-levy and adoption of mobile banking. The study further revealed that e-levy significantly moderates the relationship between perceived usefulness and adoption of electronic transaction. Findings of the study revealed that negative impact of e-levy on electronic transactions still persists after reform. The study recommends that, if possible, the government should exempt banks from the e-levy to lessen the burden of tax since banks pay income tax. Government should further amend the electronic transaction levy by re-introducing a threshold while maintaining the tax percent at 1%.

Keywords: Consumer’s perception; e-levy; Mobile banking; Path analysis; Structural equation model (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:prbchp:978-3-031-84885-8_25

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DOI: 10.1007/978-3-031-84885-8_25

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