Electronic Payments Acceptance Merchant Survey Instrument ELECTRONIC PAYMENT ACCEPTANCE PACKAGE ACKNOWLEDGEMENTS This survey instrument was prepared by a team led by Oya Ardic and Ahmed Faragallah, co-chairs of the FIGI Electronic Payments Acceptance Working Group, including Jeffrey Allen, Hemant Baijal, Asmaa Bennani, Dorothee Delort, Ilka Funke and Peter Moeller Jensen. The survey instrument was tested in the field for collecting merchant data in Morocco and Pakistan. The development of the survey instrument and data collection in the field was funded by the Bill & Melinda Gates Foundation under the FIGI program. FINANCE, COMPETITIVENESS & INNOVATION GLOBAL PRACTICE Payment Systems Development Group ©2022 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW, Washington, DC 20433 Telephone: 202-473-1000; Internet: www.worldbank.org DISCLAIMER The Financial Inclusion Global Initiative led in partnership by the World Bank Group (WBG), International Telecommunication Union (ITU), and the Committee on Payments and Market Infrastructures (CPMI), with the support of Bill & Melinda Gates Foundation (BMGF). The FIGI program funds national implementations in three countries (China, Egypt, and Mexico), supporting topical working groups to tackle 3 sets of out- standing challenges in closing the global financial inclusion gap, and hosting 3 annual symposia to gather the engaged public on topics relevant to the grant and share intermediary learnings from its efforts. This work is a product of the World Bank with external contributions prepared for the Financial Inclusion Global Initiative (FIGI) Electronic Payments Acceptance (EPA) Working Group. The findings, interpreta- tions, and conclusions expressed in this work do not necessarily reflect the views of the Financial Inclusion Global Initiative partners including The World Bank, its Board of Executive Directors, or the governments they represent, or the views of the Committee for Payments and Market Infrastructure, International Tele- communications Union, or the Bill & Melinda Gates Foundation. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, col- ors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. RIGHTS AND PERMISSIONS The material in this work is subject to copyright. Because the World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to this work is given. Any queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, The World Bank, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2422; e-mail: pubrights@worldbank.org. Table of Contents Acknowledgements  inside cover 1 Methodology  1 1.1 Objectives  1 1.2 Sample Composition  2 2 Detailed Questionnaire  3 2.1 Background Information  3 2.2 Retailer Demographics  4 2.3 Retailer Knowledge and Use of Financial Services  6 2.4 C2B Payments-Related Questions  8 2.5 B2P Payments-Related Questions  18 2.6 B2B Payments-Related Questions  19 2.7 Potential Drivers of Change  21 ELECTRONIC PAYMENTS ACCEPTANCE MERCHANT SURVEY INSTRUMENT • i I. Methodology 1.1 OBJECTIVES This instrument aims to collect quantifiable data on elec- The merchant survey is meant to capture quantifiable tronic payments acceptance among merchants in a given data on the above questions, that can be used to make jurisdiction and is one of three related data collection some inferences about the market for electronic pay- instruments detailed in the EPA assessment guide pre- ments acceptance in a country. Some key research points pared by the FIGI EPA Working Group. The other two in this respect include: are the consumer and merchant focus group discussions, • What financial services and payment methods do which will complement the findings from the merchant retailers know? survey through qualitative feedback. • What payment methods do retailers accept? The overall objective of the EPA assessment is to under- • What payment methods do retailers, as well as their stand the state of electronic payments acceptance and customers and suppliers prefer? usage in retail settings in in a given economy. The mer- chant survey seeks to inform the EPA assessment, and • What attitudes influence the retailers in their choice of as objective aims to provide guidance on the following 3 payment method? questions: • Do incentives from public authorities and payment ser- I. What are the actual practices of merchants and their vice providers affect electronic payments acceptance customers regarding retail payments? uptake by retailers? II. What are the actual and practical drivers of these prac- • Are there any socio-economic factors that influence tices? the uptake of new payment options? III. What could be potential drivers for changing these practices? ELECTRONIC PAYMENTS ACCEPTANCE MERCHANT SURVEY INSTRUMENT • 1 1.2  SAMPLE COMPOSITION 3. Retailer types: Grocery stores/Corner Stores/Conve- nience Stores, Pharmacies, Tailors, Mechanics & other A nationally representative sample of merchants is rec- small services, small restaurants & food kiosks, Gas- ommended to be selected based on the following criteria: oline stations and Doctors/healthcare professionals. Other types should be added based on the country 1. Location: consider differences between urban, rural, context. It is also important to consider chain stores and peri-urban areas. and franchises. 2. Size of retailer: micro; small; and medium-sized retail- 4. To the extent feasible, women-owned and managed ers. The definition of retailers of different sizes may retailers should be selected. differ based on country context. In the absence of country-specific guidance, the following definitions may be used: micro retailers: 0-5 employees, small retailers: 6-26 employees, and medium retailers: 26-100 employees. 2 • FINANCIAL INCLUSION GLOBAL INITIATIVE 2. Detailed Questionnaire 2.1 BACKGROUND INFORMATION Prior to going through the survey with the participant, the interviewer should fill out the following information on the retailer: Q1. Classification of the location: Urban 1 Rural 2 Peri Urban 3 Q2. City/village of the respondent. Name of city / village: Q3. Record type of retailer. Grocery 1 Non-grocery 2 Mixed 3 ELECTRONIC PAYMENTS ACCEPTANCE MERCHANT SURVEY INSTRUMENT • 3 Q4. Record type of retailer group. Grocery stores/Convenience stores/Corner stores 1 Tailors, mechanics and other small services 2 Small restaurants & food kiosks 3 Gasoline stations 4 Pharmacies 5 Utility bill payments 6 Q5. Record the name of the retailer/store. Name of the store: Q6. Record the location of the retailer/store. Main market/Commercial area/Shopping Mall 1 Main street of the area 2 Side-street of the area 3 Q7. Record the size of the store. Less than 20 m2 1 Between 20– 100 m2 2 Larger than 100 m2 3 Q8. Is there a cash register at the store? Yes 1 No 2 2.2 RETAILER DEMOGRAPHICS Q9. Record the designation of the respondent. Owner 1 Continue Manager 2 Sales person/Other staff 3 Terminate Q10. Record the gender of the respondent. Males 1 Female 2 Q.11. Is the owner AND/OR manager of the store a female? Female Owner 1 Female Manager 2 None 3 4 • FINANCIAL INCLUSION GLOBAL INITIATIVE Q12. How many employees do you have in this store location? 0–5 employees 1 6–25 employees 2 26–100 employees 3 Q13. Are there any other branches of the store throughout the country? Yes 1 Move to Q13 No [Programmer to open text box to record the number of branches] 2 Skip to Q14  ow many branches of this store are there in the country? Please include Q14a. H the branch that you are working at currently while responding. Number of branches in country: Q14b. What is the average number of employees in the other branches of your store? 0–5 employees 1 6–25 employees 2 26–100 employees 3 Q15. What would you say is the typical income profile of your customers? Low income 1 Middle income 2 High income 3 All income groups 4 Q16. How many customers do you have on a typical day? Please provide an estimate. Average number of customers in a day What percentage of your customers would you say are repeat visitors Q17.  (i.e., customers coming back to buy daily or on a weekly basis)? Percentage of repeat customers  hat is the average value of goods/merchandise/services that a typical Q18. W customer buys from you in a day? Average value of goods/merchandise/services ELECTRONIC PAYMENTS ACCEPTANCE MERCHANT SURVEY INSTRUMENT • 5 2.3 RETAILER KNOWLEDGE AND USE OF FINANCIAL SERVICES I will now go through a list of financial products with you. For each Q19a.  product, please state if you have already heard about this product. Yes, I have heard about it No, I have not heard about it Bank account 1 2 Mobile wallet 1 2 Debit card/Credit card 1 2 Pre-paid Card 1 2 Q19b. How comfortable would you feel to use each of these services for your store? Very Somewhat Somewhat uncomfortable uncomfortable Indifferent comfortable Very comfortable Bank account 1 2 3 4 5 Mobile wallet 1 2 3 4 5 Debit card/credit 1 2 3 4 5 card Pre-paid Card 1 2 3 4 5 Q19c. Which of these payment options do you actually use at the store? Yes, I use it at the store No, I do not use it at store Bank account 1 2 Mobile wallet 1 2 Debit card/Credit Card 1 2 Pre-paid Card 1 2 I will now go through a list of payment options with you. For each Q20a.  product, please state if you have already heard about this product. Yes, I have heard about it No, I have not heard about it Bank Transfer 1 2 Cheque 1 2 Debit or Credit card 1 2 Mobile wallet to mobile wallet 1 2 QR code payments (using voucher or 1 2 mobile wallet)  For options marked as “1” in Q20a] How comfortable would you feel to use Q20b. [ each of these services for your store? Very Somewhat Somewhat Very uncomfortable uncomfortable Indifferent comfortable comfortable Bank Transfer 1 2 3 4 5 Cheque 1 2 3 4 5 Debit or Credit card 1 2 3 4 5 Mobile wallet to mobile wallet 1 2 3 4 5 QR code payments 1 2 3 4 5 6 • FINANCIAL INCLUSION GLOBAL INITIATIVE [For options marked as “1” in Q20a] Which of these payment options Q20c.  do you actually use at the store? Yes, I use it at the store No, I do not use it at store Bank Transfer 1 2 Cheque 1 2 Debit or Credit card 1 2 Mobile wallet to mobile wallet 1 2 QR code payments 1 2 Q21. Are you registered in the commercial register/Is your business registered? Yes, it is registered 1 No, it is not registered 2 Don’t know 3 Others (specify) 4 Q22. Do you have a bank or mobile account that you use for your store? Yes 1 Skip to Q23 & Q24. Do not ask Q25. No 2 Skip to Q25 s this bank or mobile account in the name of the business, or in the name Q23. I of the owner? Name of business Name of business Name of Owner Don’t Know Bank account 1 2 3 Mobile wallet 1 2 3 Q24. What do you use the bank or mobile account for? [Mark all answers]. Paying suppliers 1 Paying employees 2 Paying utilities 3 Receiving or sending money 4 Receiving payments 5 Saving 6 Receiving payment for the price of goods and services provided 8 Others (specify) ____ 7 ELECTRONIC PAYMENTS ACCEPTANCE MERCHANT SURVEY INSTRUMENT • 7  ou stated that you do not use a bank or mobile account for your store. Q25. Y What are the main reasons why you don’t use one? [Mark all reasons.] Don’t know enough about it 1 Business is too small 2 Account is too expensive 3 Bank/financial service point is too far away 4 Don’t need one 5 Don’t trust financial institutions 6 Lack necessary documentation (including being informal) 7 Financial institutions are prohibited in our religion 8 It will increase my cost of doing business 9 Would have to pay more in taxes 10 Customers do not prefer to use this option when transaction size is small 11 Others (specify) 12 2.4 C2B PAYMENTS-RELATED QUESTIONS I will now read a list of payment options to you. For each of these payment Q26.  options, please tell me if you offer it to your customers. Yes, I offer it to customers No, I do not offer it to customers Cash 1 2 Payment Cards 1 2 QR code (mobile wallet-based) 1 2 Cheque 1 2 Other (Voucher, Gift cards) 1 2 Purchase on credit 1 2 8 • FINANCIAL INCLUSION GLOBAL INITIATIVE  Ask if Q26 is 1 for Cash] What are the reasons for offering cash payment Q27a. [ option to your customers? Easy to carry and manage 1 Available with customers 2 Cheaper 3 Trendy 4 Can pay suppliers directly 5 Customer preference 6 It is an immediate transfer of money 7 I can realise the sale in my books/accounts/records immediately 8 I do not have to rely on any third party (e.g., banks) to transfer the money to my 9 business account It is easier to accept payments in cash 10 It is easy for customers to pay in cash 11 I do not have to wait for the cash to be transferred to my business account 12 I do not have to pay any kind of transaction fee to anyone when taking payments 13 in cash Minimizes bookkeeping 14 Do not have to declare my entire income and can save in taxes 15 Easy to keep track of daily sales 16 It is an immediate transfer of money 17 I can realize the sale in my books/accounts/records immediately 18 I do not have to rely on any third party (e.g., banks) to transfer the money to my 19 business account Others (specify) _____ 20 Q27b. How do you handle cash? Through a store bank account 1 Through a personal bank account 2 Through a mobile money account 3 Just keep as cash 4 ELECTRONIC PAYMENTS ACCEPTANCE MERCHANT SURVEY INSTRUMENT • 9 [Ask if Q26 is 2 for Cash] What are the disadvantages of offering cash Q27c.  payment option to your customers? Risky to carry and store. 1 Expensive. 2 Prefer to deal through a bank 3 Hard for large transactions 4 I have to handle a significant amount of cash at the end of the day 5 I have to keep a manual record of every transaction that was made at the shop/ 6 store/business It puts me at a greater degree of theft 7 I have to be at the cash register at all times 8 I have to make frequent trips to the bank for depositing the cash 9 Have to keep change ready to entertain customers with large value currency notes 10 Cash counting process is tedious 11 Cash counting process is time consuming 12 Customers can give fake currency notes 13 Others (specify) _____ 14 [Ask if Q26 is 1 for Cards] What are the reasons for offering card payment Q28a.  (credit/debit) option to your customers? Easy to carry for merchants 1 Easy to carry for customers 2 Transactions are big 3 Can manage all transactions with the bank 4 Easy to manage and handle 5 Ongoing trend 6 Accepting card payments helps in keeping a financial history of my business 7 Accepting both cash and card payments has increased traffic and consequently 8 sales of my store/shop/business Accepting card payments has created a digital financial footprint of the store/shop/ 9 business I do not have to handle a large amount of cash at the store/shop/business 10 I do not have to deposit a large amount of cash in my business account the next day 11 There is an increasing trend of accepting payments on debit/credit cards 12 Accepting card payments will help increase the volume of my business 13 There is a reduced risk of cash theft 14 It is convenient for me to show transaction records when making tax payments 15 Payment is transferred directly to my account 16 I do not have to handle large amounts of cash 17 Others (specify) _____ 18 10 • FINANCIAL INCLUSION GLOBAL INITIATIVE [Ask if Q26 is 2 for Cards] What are the reasons for not offering Q28b.  card payment (credit/debit) option to your customers? Business is not registered 1 Expensive—high transaction cost 2 Not suitable for small shops 3 Don’t deal with banks for religious reasons 4 Banks will expose us to government taxes 5 Customers don’t have cards 6 Could cause losses and frauds 7 Long settlement cycle/money is not accessible immediately 8 They are difficult to use for customers 9 It sometimes charges the customer more than once when processing the payment 10 Customers do not prefer to use it for payments that are quite small in value 11 Customers do not prefer to use it for payments that are sizeable in value 12 A certain amount of transaction fee has to be paid to a third party and that will add 13 to my business cost I have to pay a heavy fee to install POS device 14 Have to pay more in taxes 15 Difficult to entertain customers when the internet or servers are down 16 Difficult to avoid fake card transactions 17 Others (specify) _____ 19 [Ask if Q26 is 1 for QR codes (mobile wallet based)] What are the Q29a.  reasons for offering QR code payment option to your customers? Cheap transaction 1 Available with customers 2 Customers preference 3 Trendy 4 Easy to carry and manage 5 Transactions are small 6 Can manage all my transactions with the bank 7 Process is easy and controlled 8 It is convenient to use for the customers 9 Customers spend more at the store as it offers discounts and promotions 10 Placing QR code at the store does not require any additional set up such as internet 11 connection set up, wiring etc. Payments made using QR code are instantly made to my business account 12 It has increased the traffic of customers at my store/shop/business 13 I do not have to handle a large amount of cash at the store/shop/business 14 I do not have to deposit a large amount of cash in my business account the next day 15 It costs less to have a QR code at the store (in registration fee) compared to the 16 service charges to be paid to the bank for POS machine Payments is transferred directly to my account 17 Others (specify) _____ 18 ELECTRONIC PAYMENTS ACCEPTANCE MERCHANT SURVEY INSTRUMENT • 11 [Ask if Q26 is 2 for QR codes (mobile wallet based)] What are the reasons Q29b.  for not offering card payment (credit/debit) option to your customers? Business not registered 1 Expensive, high transaction cost 2 Don’t have a mobile phone 3 Needs an expensive/smart mobile 4 Face difficulties with mobile network 5 Not suitable for small shops 6 Don’t deal with banks for religious reasons 7 Banks will expose us to gov. taxes. 8 Customers don’t have wallets 9 Could cause losses and frauds 10 I do not know how to use a QR code for accepting payments 11 I am skeptical of using a QR code as I do not know how it really works 12 Other business that have used a QR code have not had a positive experience 13 with it It is difficult to use for customers 14 It often takes a significant amount of time for the customer to make the payment 15 through it with the customer having to spend more time at the cash counter Paying through cash or debit/credit card are much more convenient for 16 customers to use It often takes a significant amount of time to process the payment 17 I want to use a QR code but do not know how to avail it for my store/shop/ 18 business Not many customers are aware of payments via a QR code so there is not much 19 use for me Customers may transfer the payment to a wrong number 20 Internet availability is a must 21 Slow payment processing when the network is busy 22 Have to pay transaction charges for collecting payments using QR codes 23 Others (specify) 24 [Ask if Q26 is 1 for Cheque] What are the reasons for offering this payment Q30a.  option to your customers? Easy to carry for merchants 1 Easy to carry for customers 2 Transactions are big 3 Can manage all transactions with the bank 4 Easy to manage and handle 5 I do not have to handle a large amount of cash at the store/shop/business 6 Accepting cheque payments will help increase the volume of my business 7 There is a reduced risk of cash theft 8 It is convenient for me to show transaction records when making tax payments 9 I do not have to handle large amounts of cash 10 Others (specify) 11 12 • FINANCIAL INCLUSION GLOBAL INITIATIVE [Ask if Q26 is 2 for Cheque] What are the reasons for not offering Q30b.  this option to your customers? Business is not registered 1 Expensive—high transaction cost 2 Not suitable for small shops 3 Don’t deal with banks for religious reasons 4 Banks will expose us to government taxes 5 Customers don’t prefer/ don’t use cheques 6 They are difficult to use for customers 7 They are difficult to use for me 8 Customers do not prefer to use it for payments that are quite small in value 9 Have to pay more in taxes 10 Difficult to avoid cheques with insufficient funds/cheques may be rejected 11 Others (specify) _____ 12  Ask if Q26 is 1 for Other (Vouchers/Gift Cards)] What are the reasons for Q31a. [ offering this payment option to your customers? Easy to carry for merchants 1 Easy to carry for customers 2 Transactions are big 3 Can manage all transactions with the bank 4 Easy to manage and handle 5 I do not have to handle a large amount of cash at the store/shop/business 6 Accepting vouchers will help increase the volume of my business 7 There is a reduced risk of cash theft 8 It is convenient for me to show transaction records when making tax payments 9 I do not have to handle large amounts of cash 10 Can have repeat customers 11 Others (specify) _____ 12 [Ask if Q26 is 2 for Other (Vouchers/Gift Cards)] What are the reasons Q31b.  for not offering this option to your customers? Prefer to deal through a bank 1 Hard for large transactions 2 I have to keep a manual record of every transaction that was made at 3 the shop/store/business Difficult to manage or handle 4 Customers do not prefer it 5 Have to pay more in taxes 6 Not suitable for small shops 7 Others (specify) _____ 8 ELECTRONIC PAYMENTS ACCEPTANCE MERCHANT SURVEY INSTRUMENT • 13 [Ask if Q26 is 1 for Purchase on Credit] What are the reasons for offering Q32a.  this payment option to your customers? Customers do not always have enough money 1 Customers demand specifically for this 2 Good for my business 3 Others (specify) _____ 4 [Ask if Q26 is 2 for Purchase on Credit] What are the reasons for not Q32b.  offering this option to your customers? Hard for large transactions 1 I have to keep a manual record of every transaction that was made at the shop/ 2 store/business It puts me at a greater risk of not receiving the payment at all 3 Others (specify) _____ 4 [Only for payment options that are chosen as 1 in Q26] Using this scale, Q33.  please indicate your experience of using these payment options at your store? Other (Voucher/ Purchase on Cash Card QR code Gift Card) Credit Very negative 1 1 1 1 1 Somewhat negative 2 2 2 2 2 Neutral 3 3 3 3 3 Somewhat positive 4 4 4 4 4 Very positive 5 5 5 5 5 From the list of options that you use at the store, are there any payment Q34.  methods you personally prefer? Cash 1 Card 2 QR code 3 Skip to Q35 Cheque 4 Other (Voucher/Gift Card) 5 Purchase on Credit 6 I do not have any preference towards a particular payment option 7 Skip to Q36 Q35. Why do you prefer this payment option? [Multiple responses possible] Cost 1 Ease / Simplicity 2 Transparency 3 Immediacy 4 Trust 5 Other (specify) _____ 6 14 • FINANCIAL INCLUSION GLOBAL INITIATIVE [Ask if Q26 is 1 for Card or QR codes] What electronic payment acceptance Q36.  tool(s) do you use? [Multiple responses possible] POS 1 mPOS 2 Mobile payment 3 Static QR code (through a printed code) 4 Dynamic QR code (through mobile generated code) 5 [Ask if Q26 is 1 for Card or QR codes] In case of using electronic payments? Q37.  How frequently do you receive your funds? (i.e, the time between the customer payment, and settlement on the merchant’s account) Immediately 1 More than once a day 2 At the end of the day 3 Next day 11 After 2 days 4 After 3 days 5 After 4–6 days 6 After 7 days 7 More than a week but less than 2 weeks 8 More than 2 weeks 9 At the end of the month 10 Do you know that you can accept electronic payments even if you are not Q38.  registered as a business? Yes 1 Ask Q39 & Q40 No 2 Skip to Q41 Q39. [Ask if Q38 is 1] How did you learn about it? Central Bank/Regulatory Authority communication 1 Friends 2 Family 3 TV 4 Radio 5 Other merchants 6 Business Association 7 Information from a financial service provider 8 ELECTRONIC PAYMENTS ACCEPTANCE MERCHANT SURVEY INSTRUMENT • 15 Q40. [Ask if Q38 is 1] Did this change your mind about offering mobile payments? Yes 1 No 2 Still thinking about it 3 [Ask if Q38 is 2] Now that you are aware of the possibility of offering mobile Q41.  payment services without being registered as a commerce, do you think that you will start offering this? Yes 1 No 2 Don’t know 3  Ask if Q22 is 1 and Q26 is 2 for Cards or QR codes] If you have an account, Q42. [ did you check with your bank on accepting card transactions or mobile money transactions? Yes, but it didn’t work 1 Skip to Q43 No 2 Skip to Q44 Q43. [Ask if Q42 is 1] What was the reason? Shop is not registered, or bank required lot of documentation 1 Fees are too high 2 Bank didn’t reply 3 Customers will not use it 4 Internet is very weak in the area 5 Internet cost is high 6 I don’t have a suitable mobile to accept payments 7 Others (specify) ____ 8 Q44. Has the COVID-19 pandemic changed your preferred payment method? Yes 1 Skip to Q44 No 2 Skip to Q46 [Ask if Q44 is 1] What was your preferred payment method prior to the Q45.  pandemic outbreak? Cash 1 Payment Cards 2 QR codes 3 Cheque 4 Other (Vouchers/Gift Cards) 5 Purchase on Credit 6 Did not have any preferred payment method 7 16 • FINANCIAL INCLUSION GLOBAL INITIATIVE Q46. What is your preferred payment method currently? Cash 1 Card 2 QR codes 3 Cheque 4 Other (Vouchers/Gift Cards) 5 Purchase on Credit 6 Do not have any preferred payment method 7 Please provide an estimate of how often customers use each payment Q47.  instrument in terms of the percent of the store’s daily transactions received by each payment method, or, alternatively, the percent of customers using each payment instrument [This should add up to 100%] Cash Payment Cards QR code Cheque Other (Voucher/Gift Card) Purchase on Credit Total Has the COVID-19 Pandemic brought about a change in customers’ Q.48  preferred payment method? Yes Skip to Q49 & 1 50 & 51 No 2 Skip to Q52 Q.49 What was their preferred payment method prior to the pandemic outbreak? Cash 1 Payment Cards 2 QR codes 3 Cheque 4 Other (Vouchers/Gift Cards) 5 Purchase on Credit 6 Did not have any preferred payment method 7 Q.50 What is their preferred method now? Cash 1 Payment Cards 2 QR codes 3 Cheque 4 Other (Vouchers/Gift Cards) 5 Purchase on Credit 6 Did not have any preferred payment method 7 ELECTRONIC PAYMENTS ACCEPTANCE MERCHANT SURVEY INSTRUMENT • 17  ow many of your customers (in percent) have changed their behaviour due to Q51. H the COVID-19 pandemic outbreak? Customers who changed their behaviour 2.5 B2P PAYMENTS-RELATED QUESTIONS If the respondent does not have employees, go to section 2.6  ow do you pay your employees i.e., how many employees do you pay salaries Q52. H to using each of these payment methods? % of transactions per month Cash (%) Cheque (%) Card (like debit or payment card) (%) Bank Transfer/ Direct Deposit (%) Mobile Money (%) Other electronic or paper-based payment option (please specify) (%)  Ask for each payment method that was greater than 0% in Q52] Why do you Q53. [ use this method of payment for paying your employees? Always done it this way 1 Employee prefers this 2 Trust this option 3 Speed 4 Price 5 Size of payment 6 Other (specify) ____ 7 Q54. Did you try other options for paying salaries? Yes (specify which one) 1 Skip to Q55 No 2 Skip to Q56 Q55. Did you have a positive experience? Yes 1 No (please specify) 2 Q56. Would you like to learn more about alternative options for paying salaries? Yes 1 No 2 18 • FINANCIAL INCLUSION GLOBAL INITIATIVE 2.6 B2B PAYMENTS-RELATED QUESTIONS Q57. How many suppliers do you have approximately? No. of suppliers Q58. Are any of your suppliers an international chain/or from another country? Yes 1 No 2 Don’t know 3 Q59. In a normal month, how many times do you pay for supplies? More than once a day 1 Once a day 2 Every 2–3 days 3 Every 4–6 days 4 Every week 5 More than a week and less than 2 weeks 6 Every 2 weeks 7 At the end of the month 8 What would you say is the average value of payment you make Q60.  to your suppliers? Average payment to suppliers  ow do you usually pay your suppliers? Please give me a rough estimate Q61. H of the percent of payments that are made through each of the following payment options. Cash (%) Cheque (%) Card (%) Bank Transfer (in person) (%) Online banking/mobile transfer (%) Other electronic or paper-based payment option (please specify) (%) Q62. Are the percentages different if you think about the value of transactions? Yes 1 Skip to Q63 No 2 Skip to Q64 ELECTRONIC PAYMENTS ACCEPTANCE MERCHANT SURVEY INSTRUMENT • 19 Please give a rough estimate of the value of transactions that are Q63.  made through each payment method. Cash Cheque Card Bank Transfer (in person) Online banking/mobile transfer Other electronic or paper-based payment option (please specify) Q64. Who determines the payment option? Supplier 1 Merchant (i.e., yourself) 2 Q65. Do you use the same payment method for making your utility payments? Yes 1 Skip to Q68 No 2 Skip to Q66 Q66. Which payment method do you use for making your utility payments? Cash 1 Cheque 2 Card 3 Bank Transfer (in person) 4 Online banking/mobile transfer 5 Others (specify) ____ 6 Q67. Why do you use a different payment method for your utilities? Traditional way of paying utilities 1 Family and friends use this option 2 Utility company prefers this option 3 Cheaper option 4 Speed 5 Traditional way of paying utilities 6 Others (specify) ____ 7 20 • FINANCIAL INCLUSION GLOBAL INITIATIVE 2.7 POTENTIAL DRIVERS OF CHANGE Q68. How do you usually learn about the different options for making payments? Friends 1 Family 2 TV 3 Radio 4 Other merchants 5 Business association 6 Information from financial services provider 7 Which of the options above do you trust the most to learn about new Q69.  financial services? [max 2 options] Friends 1 Family 2 TV 3 Radio 4 Other merchants 5 Business association 6 Information from financial services provider 7  ave you talked to or been approached by a bank or payment service Q70. H provider to hear about alternative payment solutions? Yes 1 Skip to Q71 No 2 Skip to Q72 Q71. Was the information you received helpful? Yes 1 No 2 Have payment service providers or public authorities provided any of Q72a.  these incentives for accepting electronic payments? Yes, I was offered No, I was not offered this incentive this incentive Hardware Subsidies 1 2 (e.g., POS subsidy) Reduction of Transaction Fees (e.g., for cards / mobile 1 2 transfers) Tax Breaks 1 2 Credit 1 2 Value-added services (e.g., productivity solutions, revenue 1 2 generating services, client relationship management) Other Incentives 1 2 ELECTRONIC PAYMENTS ACCEPTANCE MERCHANT SURVEY INSTRUMENT • 21 In your opinion, would this incentive help your store to accept electronic Q72b.  payments or increase the uptake of them? Yes, it would help No, it would not help Hardware Subsidies 1 2 (e.g., POS subsidy) Reduction of Transaction Fees (e.g., for cards / mobile 1 2 transfers) Tax Breaks 1 2 Credit 1 2 Value-added services (e.g., productivity solutions, revenue 1 2 generating services, client relationship management) Other Incentives 1 2 How important would the following additional measures be for encouraging Q73.  you to use more electronic payment acceptance tools? Unimportant Not too important Neutral Somewhat important Very important Linking payments to 1 2 3 4 5 suppliers Facilities from the bank 1 2 3 4 5 Immediate settlement 1 2 3 4 5 to your account Dealing with Islamic 1 2 3 4 5 banks only Dealing with nonbanks, such as MNOs and 1 2 3 4 5 other companies No need to be 1 2 3 4 5 registered as business Increasing demand 1 2 3 4 5 from customers  o finish the survey, I will now read you a number of statements. For each Q74. T statement, please tell me on a scale from 1 to 5 whether you strongly disagree, somewhat disagree, are indifferent, or somewhat or strongly agree. 1 Strongly disagree 2 Somewhat disagree 3 Indifferent 4 Somewhat agree 5 Strongly Agree Strongly disagree Somewhat disagree Indifferent Somewhat agree Strongly Agree The banks and other 1 2 3 4 5 financial service providers offer adequate products and services for merchants I am interested in 1 2 3 4 5 exploring new options for receiving and making payments in my store Financial services are 1 2 3 4 5 generally easy to use I prefer keeping larger 1 2 3 4 5 amounts of money in the bank than in my store Trust and safety are 1 2 3 4 5 more important than the price of a payment service I frequently do not have 1 2 3 4 5 enough money to pay the supplier on time I will only use a new 1 2 3 4 5 payment service if other people I trust are using it regularly ELECTRONIC PAYMENTS ACCEPTANCE MERCHANT SURVEY INSTRUMENT • 23