As part of a broader shift toward e-government and digital public infrastructure, tax administrations in sub-Saharan Africa (SSA) are increasingly leveraging digital technologies to enhance efficiency, transparency, and compliance. Among these innovations, digital merchant payments (DMPs) have gained particular attention for their potential to improve tax collection. This chapter first sets the ground by exploring the theoretical links between DMP and taxation. In order to later examine the patterns of DMP adoption in four countries—Burkina Faso, Rwanda, Ghana, and Tanzania. We then use the data in order to explore the factors driving adoption, and the implications for tax compliance. Our findings indicate that factors such as knowledge of mobile money, access to digital financial infrastructure, firm size, and integration into digital value chains play a crucial role in enabling DMP adoption. However, despite digitalization efforts, cash remains dominant. To maximise the tax benefits of DMPs, we propose key policy recommendations such as fostering a supportive digital ecosystem through fiscal incentives and infrastructure investment, ensuring inclusivity by addressing the digital divide, enhancing data sharing through legal and institutional reforms, and integrating digital tools into broader administrative reforms. Finally and perhaps most importantly, a key message from the chapter is that strengthening digitalization within tax administrations has the potential to further drive efficiency and serve as a model for wider public sector transformation.