An overview of factors influencing the adoption of IoT payment systems in South Africa’s small and medium-sized retail enterprises

The emergence of the Internet of Things (IoT) has the potential to transform South Africa's Small and Medium-sized Enterprises (SMEs) payment systems, creating a new digital ecosystem where everyday objects can seamlessly perform payment transactions. Retail SME survival and continuity depend on the ability to adopt innovative methods that ensure long-term sustainability. Despite the value proposition of adopting IoT payment systems, retail SMEs and consumers in South Africa generally have not yet adopted them, resulting in reduced efficiency, poor customer experiences, limited data insights, competitive disadvantages, and increased cash-related crimes. This review bridges the gap in understanding the factors that drive the adoption of IoT payment systems among South African retail SMEs, presenting a conceptual framework for understanding their adoption in this sector. We developed the conceptual framework by integrating theoretical triangulation and insights from the literature review, setting a foundation for future empirical research. This paper identifies and explains several key factors influencing the adoption of IoT payment systems specifically by South Africa's Retail SMEs, including technological, environmental, organizational, and individual elements, along with both facilitators and inhibitors. Understanding these factors allows retail SME owners, IoT practitioners, and policymakers to formulate policies that promote the widespread adoption of IoT technologies in South Africa's retail SME payment systems and make well-informed strategic decisions regarding resource allocation.