Fintech and Cash Persistence: A Behavioral Finance Perspective on POS Terminals Adoption Resistance in Moroccan Neighborhood Retail

Résumé

Abstract

In recent years, Morocco has implemented a major strategic reform initiative aimed at accelerating the transition from a cash-based economy to a digital economy. However, Point of Sale (POS) terminals adoption remains limited among Moroccan neighborhood micro-retailers. This study aims to explore the psychological mechanisms behind Moroccan neighborhood micro-retailers’ behavior based on a behavioral finance perspective. The objective is therefore to understand the role of cognitive biases (losses aversion, status quo, herd behavior, ambiguity aversion) in the resistance to adopting POS terminals. The study employs an exploratory qualitative approach using semi-structured interviews. The results of the cross-sectional thematic analysis revealed that Moroccan neighborhood micro-retailers are particularly sensitive to financial and operational losses, prefer cash payments, place significant importance on the experiences and recommendations of peers, and express uncertainty regarding the consequences of adopting this fintech digital payment service. This study helps fill a significant theoretical gap in the existing literature by drawing on the perspective of behavioral finance to explain resistance to POS terminal adoption in the Moroccan context. From a managerial perspective, this study provides important guidelines for monetary authorities regarding strategies aimed at reducing the perception of losses, ensuring a gradual transition, further promoting communication campaigns, reducing uncertainty, and highlighting the success experiences of other micro-retailers.

Keywords: Fintech; POS Terminal; Cash Persistence; Neighborhood Retail, Cognitive Biases; Morocco.