Author(s): Sharmila Pudaruth, Thanika Devi Juwaheer, Lomendra Vencataya and Rajesh Sannegadu
The paper aims to provide broad insights towards the acceptance of plastic card payments from merchants in Mauritius. A quantitative research approach has been adopted for the paper whereby the perceptions of merchants have been tapped by adopting quantitative research techniques, by conducting a survey with 200 merchants across the 9 districts of the island of Mauritius. As far as the perception of merchants is concerned for plastic card acceptance, only 37% of merchants accept plastic card payments and they have highlighted such factors as ‘to increase frequency sales (21.7%)’, ‘to increase competitiveness (20.8%)’ and ‘lower risks of theft and counterfeit (19.8%)’ as the main reasons for adopting innovative payment solutions. This original research has made a valuable contribution to the body of literature as there is a lack of empirical and holistic studies towards innovative payment solutions in Mauritius. Therefore, the research has enough concrete and empirical findings that would serve as a roadmap for banking executives, credit card companies, policy makers of banking industry and merchants to better promote and sustain the adoption of plastic cards by devising appealing marketing strategies in Post Covid19. The research will also provide merchants with insightful ideas to promote the adoption of plastic cards among customers as merchants are in direct touch with customers in the retail outlets of Mauritius. This research is innovative since it has adopted a quantitative research approach to deepen insights into the factors impacting on the acceptance of plastic cards among merchants in Mauritius. This paper provides a holistic perspective in understanding the emerging phenomenon of innovative payment solutions by integrating the views of merchants unlike other studies which have concentrated on plastic card adoption only from a customers’ point of view. This research is one of the pioneer studies that has addressed the benefits and challenges of plastic card payments as there are several changes happening in the payments landscape, following the pandemic crisis around the world.