Digital Payments And Financial Inclusion: What The Global Evidence Shows – OpEd

Access to basic financial services remains uneven across the world. In many developing and emerging economies, large segments of the population still lack formal bank accounts, reliable payment options, or safe ways to save and transfer money. Over the past decade, digital payment technologies have been widely promoted as a way to address these gaps. Mobile money, e-wallets, and online payment platforms now feature prominently in discussions of financial inclusion.

From reviewing the empirical evidence, it is clear that these technologies can play an important role in expanding access to finance, particularly where traditional banking infrastructure is limited. By reducing transaction costs and allowing people to manage money remotely, digital payment systems can lower barriers to participation in formal financial services. For households and small businesses long dependent on cash, this shift can meaningfully change how financial transactions are conducted.

Much of the existing research points to positive inclusion outcomes in developing economies, especially in contexts where mobile technology has spread rapidly. Digital payment tools have been associated with greater access to basic services such as transfers, payments, and savings. In areas where physical bank branches are scarce or difficult to reach, mobile-based systems have helped users overcome geographic and institutional constraints. These tools have also made everyday transactions faster and more convenient.

At the same time, the evidence shows that the effects of digital payments are neither uniform nor automatic. Adoption rates differ widely across countries and social groups, and the benefits of digital finance do not reach all users equally. Access often depends on reliable connectivity, affordable devices, and basic digital skills. Where these conditions are missing, digital payment systems may reinforce existing inequalities rather than reduce them.

Gender disparities remain a persistent issue. Across many settings, women are less likely than men to adopt digital financial services or to use them regularly. These gaps reflect broader economic and social constraints, including unequal access to technology, lower digital literacy, and legal or cultural barriers. The evidence reviewed makes clear that digital payment technologies alone do not eliminate these obstacles and may reproduce familiar patterns of exclusion.

Income and education also shape outcomes. Individuals with higher income or educational attainment are generally more likely to adopt digital payment tools and benefit from their use. For lower-income households, concerns about cost, security, and trust can limit uptake. This underscores a central lesson from the literature: access to technology is necessary, but it is not sufficient for meaningful financial inclusion.

Institutional and regulatory environments play an equally important role. Clear rules, consumer protection frameworks, and effective oversight help build trust in digital payment systems and encourage adoption. In contrast, weak regulation or fragmented payment ecosystems can undermine confidence and expose users to risk. The evidence suggests that digital payments deliver stronger inclusion outcomes when they are embedded within coherent financial systems and supported by effective governance.

Newer technologies, including blockchain-based payment systems, have also been discussed as potential tools for inclusion. Some studies point to possible advantages related to transparency and cross-border transactions, but the findings remain context-dependent. Their effectiveness hinges on regulatory clarity, institutional capacity, and user trust. As with other digital tools, technology alone does not substitute for sound policy.

Taken together, the global evidence supports a balanced conclusion. Digital payment technologies can expand access to financial services by lowering costs and improving convenience, particularly in underserved environments. However, their impact is shaped by social, economic, and institutional conditions that extend beyond technology itself.

For policymakers, this means that digital finance strategies should form part of broader inclusion and development agendas. Investments in digital infrastructure, education, and consumer protection are essential complements to innovation. Policies that directly address gender gaps, affordability, and trust can help ensure that digital payments contribute to inclusive growth rather than uneven access.

Digital payment technologies are best understood not as standalone solutions, but as components of wider financial ecosystems. When combined with supportive institutions and inclusive policies, they can broaden participation in formal financial systems. Without these foundations, their promise remains only partially realized.

Disclosure: This article is based on a peer-reviewed study published in FinTech (DOI: https://doi.org/10.3390/fintech4040059).

About the authors:

• Mesbah Sharaf is a Full Teaching Professor of Economics at the University of Alberta, Canada, and holds a PhD in Economics from Concordia University in Montreal. His work focuses on financial inclusion and inequality, economic development, and macroeconomic policy, including issues related to exchange rate dynamics, external debt, and inflation, with particular attention to emerging economies and the Gulf region.
• Abdelhalem Shahen is an Associate Professor of Economics at Imam Mohammad Ibn Saud Islamic University (IMSIU) in Saudi Arabia. His research examines digital finance and fintech, financial inclusion, and economic development, alongside macroeconomic topics such as exchange rates, foreign debt, and inflation, with a focus on the Gulf region and other emerging economies.