Digital Payment Systems and Financial Inclusion: Examine How Digital Payment Systems, Such as Mobile Wallets and Digital Currencies, Can Improve Financial Inclusion by Providing Access to Banking Services for the Unbanked and Underbanked Population

For economic development and poverty alleviation, financial inclusion is essential. This study’s overarching goal is to assess the prevalence of financial exclusion across various demographic subsets in both urban and rural settings, and to explore how the widespread use of digital payment systems might influence those figures. Two hundred people were randomly selected to participate in a cross-sectional survey. Questions about financial exclusion and the use of digital payment systems were included in the survey framework used to collect the data. Financial inclusion was shown to be higher in urban regions across all age groups compared to rural areas, although this discrepancy persisted even after controlling for other factors. Individuals with a high adoption of digital payment systems were shown to have a higher likelihood of being fully banked, while those with a moderate adoption level had a lower likelihood. These results highlight the necessity for tailored initiatives to promote financial inclusion among various demographic groups and shed light on the significance of digital payment systems in closing the financial inclusion gap.