Traders in Kumasi’s central market are rapidly shifting away from cash as digital payments become an everyday tool for managing sales, reducing risk, and unlocking new opportunities for growth. The transition reflects a broader change in how informal businesses across West Africa are embracing financial technology to strengthen resilience and plan for the long term.
A cash-heavy market begins to change
For decades, Kumasi’s sprawling central market has operated almost entirely on cash, with traders exposed to theft, loss, and limited financial visibility. That model is now changing. Across the market, merchants selling food, textiles, household goods, and electronics increasingly accept mobile-based payments alongside, and in some cases instead of, physical cash. Traders say the shift has reduced daily stress and improved their ability to track income.
Digital payments gain trust
The adoption of digital payments has accelerated as customers become more comfortable using mobile phones to pay for everyday purchases. Traders note that transactions are faster, disputes are fewer, and records are automatically created. In Kumasi, where trading volumes are high and margins can be thin, even small efficiency gains matter. Merchants say digital receipts help them understand which products sell best and when demand peaks.
Improved security and transparency
Reducing cash on hand has also lowered exposure to crime. Traders report fewer incidents of theft and less anxiety about transporting money at the end of the day. At the same time, digital transaction histories are providing a clearer picture of daily turnover. This transparency, long absent from informal trading, is becoming a valuable business asset rather than a regulatory burden.
Access to credit and financial services
One of the most significant changes is access to credit. With verifiable transaction records, traders who were previously excluded from formal finance are now able to demonstrate cash flow and repayment capacity. Some report receiving small working-capital loans linked directly to their digital payment activity. For many merchants in Ghana, this marks a shift from informal borrowing to more structured, predictable financing.
From survival to planning
The ability to track income digitally is encouraging longer-term thinking. Traders describe using transaction data to plan inventory purchases, manage seasonal fluctuations, and set aside funds for expansion. Clothing sellers are adjusting stock based on weekly sales trends, while food vendors are better able to manage perishables. The result, traders say, is steadier income rather than sharp daily swings.
Challenges and inclusion gaps
Despite the momentum, challenges remain. Network reliability, transaction fees, and occasional technical issues can disrupt trading. Older traders and those with limited digital literacy sometimes struggle with the transition, creating a risk of exclusion. Market associations and payment providers are responding with basic training and on-site support, aiming to ensure that digital adoption remains inclusive.
Implications for the informal economy
The shift from cash to digital payments in Kumasi’s central market illustrates how informal economies can modernise without losing flexibility. As more traders build financial histories, the boundary between informal and formal commerce begins to soften. For policymakers, the trend offers a pathway to broader financial inclusion and economic stability without heavy-handed regulation.
A market in transition
What is happening in Kumasi is not a sudden revolution but a steady transformation. By reducing risk, improving visibility, and opening doors to credit, digital payments are helping small merchants move beyond day-to-day survival. The cumulative effect is a stronger, more confident trading community, better equipped to grow in an increasingly digital economy.
Newshub Editorial in Africa – 26 December 2025
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