Can Digital Payments Spur Formalization? Evidence From Small Businesses In Côte D’Ivoire

This project examines how digital payment systems can reduce transaction costs and support the formalization of small businesses in Côte d’Ivoire and Senegal. In partnership with Wave, a leading mobile money provider, the research focuses on developing and testing digital payment tools for taxi owners and drivers to address issues such as cash shortages, security risks, and limited transparency in daily transactions. The study aims to understand how different levels of transaction visibility between drivers and vehicle owners affect adoption, trust, and operational efficiency. Insights from this phase will inform a larger randomized evaluation to assess the broader role of digital payments in improving financial inclusion and business performance in the informal transport sector.