Digital Payment Adoption in Rural Area

Financial technology (Fintech) has transformed entrepreneurial finance, offering innovative solutions for funding, payments, and financial management. Digital payments, a key aspect of fintech, enable fast, secure, and low-cost transactions. This review examines the impact of fintech and digital payments on entrepreneurial finance, highlighting trends, challenges, and future directions. The study analyses existing literature on fintech adoption, digital payment systems, and their effects on entrepreneurial finance. Findings from this study reveals that fintech and digital payments have increased access to finance for entrepreneurs, particularly in emerging markets. Digital payment systems, such as mobile money and online payment gateways, have reduced transaction costs and improved financial inclusion. Fintech platforms, like crowdfunding and peer-to-peer lending, have democratized access to capital. However, challenges persist, including regulatory hurdles, cybersecurity risks, and financial literacy gaps. The COVID-19 pandemic has accelerated fintech adoption, highlighting its importance in maintaining financial resilience. Fintech and digital payments have revolutionised entrepreneurial finance, offering opportunities for growth and financial inclusion. As fintech continues to evolve, entrepreneurs, policymakers, and financial institutions must collaborate to address challenges and harness its potential. Future research should focus on fintech’s impact on financial sustainability and exploring new technologies, such as blockchain and artificial intelligence, to enhance entrepreneurial finance.

In the Indian context, financial inclusion was defined as “the process of ensuring timely and adequate access to affordable credit and financial services for vulnerable groups” (Union Budget 2007-08). The Financial Inclusion Committee also defines financial inclusion as a mechanism for ensuring access to financial services and, where possible, adequate credit at an affordable cost to vulnerable groups, such as the poor and low-income groups (Financial Inclusion Committee Report, 2008). While these two meanings apply to a number of financial services, there is a strong bias in credit. It is therefore not surprising that until a few years ago, the discussion on financial inclusion in policy and academic circles revolved around increasing organized institutional credit to the detriment of savings, given sufficient evidence to save poor people (Basu, 2005; Dev, 2006; Mohan, 2006). Even after years of implementing mass banking in India, through committed and extended services of financial intermediaries to the poorest of the poor and the downtrodden, a vast majority of rural households are still in the grip of non-formal agencies. Due to lack of financial literacy in the backward and rural areas, financial services are yet to reach a vast majority of the population in rural and backward areas. Hence the proposed study will make an attempt to identify the constraints in application of digital finance for financial inclusion. The study will have significant impact on societal development as it tries to identify the level of awareness on financial inclusion among the rural masses and find reasons for financial exclusion. It will also throw light on Bankers and other financial stake holders approach in implementing financial inclusion in rural areas and factors influencing accessibility of funding. Hence the study leads to rectify the problems in make use of formal financial services by rural masses and bring them in to the fold of formal financial services in turn led the economic development.

India has undergone a remarkable digital transformation in the financial sector through the rapid adoption of digital payment systems, especially the Unified Payments Interface (UPI). UPI has revolutionized the payment ecosystem by enabling instant, real-time, and interoperable transactions at zero cost, making it one of the most successful digital payment innovations globally. This study investigates the impact of UPI and associated digital payment platforms on reducing cash dependency among Indian consumers. Using a descriptive and analytical research methodology, primary data were collected from 200 respondents, supplemented with extensive secondary data from RBI, NPCI, government documents, and previous studies. The findings reveal that UPI has significantly reduced reliance on cash for routine transactions, particularly among younger consumers and urban users. However, issues such as cyber fraud, digital illiteracy, and inconsistent network connectivity continue to influence adoption patterns. The study concludes that digital payment systems are accelerating India’s movement toward a less-cash economy but have not yet made cash obsolete. Stronger cybersecurity systems, improved digital infrastructure, and widespread digital literacy initiatives are recommended to enhance adoption and strengthen public trust. Keywords: UPI, Digital Payments, Cash Dependency, FinTech Adoption, Mobile Wallets, Financial Inclusion, Real-Time Payments, Digital India, Consumer Behaviour

The rapid evolution of technology and a large number of smartphone users are transforming the way the masses access financial services. Fintech companies consistently innovate in developing customized products and services for users and SMEs to increase financial access and inclusiveness to achieve the Indonesian national financial inclusion target of 90 percent by 2024. Access to digital financial products via Fintech contributes to greater financial inclusion for SMEs, particularly during the COVID-19 pandemic, which restricted economic activities. Using an extended TAM model, this study explores the driving factors of Fintech adoption for Indonesian SMEs during the COVID-19 outbreak. Data analysis of 415 respondents was conducted utilizing Smart-PLS 3.0 software. The findings confirm perceived usefulness, perceived ease of use, government support, trust, and user innovativeness to have a direct positive effect on the intention of SMEs to adopt Fintech. The result also reveals that financial literacy indirectly correlates with Fintech adoption mediated by user innovativeness. This indicates that Fintech could contribute to bridging financial inclusion where SMEs with lower financial literacy can utilize financial products and services via Fintech. This is a positive contribution of Fintech for SMEs in developing economies. The present study suggests that policymakers could foster the expansion of Fintech business infrastructure to improve access to SME financial services.

The significance of an inclusive financial system is widely acknowledged in the policy community, and it is now a top priority in many nations, including Ethiopia. This study aimed to analyze the elements that affect financial inclusion in rural areas and how to increase it among customers and residents of Gambella People’s National Regional State in Ethiopia. The population was condensed to include only the staff of the Gambella Saving and Credit Institution in Gambella town. The study employed primary data, and STATA 13 and the Statistical Package of Social Science (SPSS) 23 were used to analyze the data. Data were collected in the form of descriptive and inferential statistics. The study discovered that characteristics that affect financial inclusion had statistically significant and positive relationships with sex, marital status, religion, degree of education, service quality, income, and trust in financial services. However, the proximity to a financial institution’s branch and a resident’s ID card had a detrimental impact on the characteristics that influence financial inclusion. The report also suggests managers and decision-makers at the Oromia Credit and Saving Association should take great care in how they carry out their duties and consistently seek to inspire and raise awareness among the people by emphasizing the value and benefits of being financially integrated. Keywords: credit and saving institution, factors, financial inclusion, gambella, logit model

PurposeThe purpose of this paper is to explore the impact of mobile money on savings and saving practices among individuals in Ghana.Design/methodology/approachEmploying an instrumental variable (IV) estimation technique, comprehensive data from the Financial Inclusion Insight (FII) Survey is used, implemented by InterMedia company and conducted from December 2014 to January 2015 in Ghana.Findings It is found that mobile money use generally increases savings and saving behavior among individuals in Ghana. In particular, our results show that mobile money use increases the probability of individuals saving for business startup or business expansion, child's education and emergencies. Also, for the heterogeneous effects of mobile money use on saving practices, strong evidence that the use of mobile money is more pronounced in rural areas than in urban centers is found.Originality/valueTo the best of our knowledge, no empirical study has been done on Ghana to extensively examine how mobile money affects various saving practices in Ghana as it is done in this paper. The paper highlights the need for ongoing enhancement of financial inclusion in rural areas by the government of Ghana and other stakeholders to boost savings among rural folks, while not neglecting that in urban areas. Generally, the findings for this paper support the use of mobile money as a tool for enhancing the financial inclusion agenda by policymakers in Ghana and many other countries around the world.

Financial Inclusion in Rural Areas and Poverty Reduction in India

The Indian tourism industry has seen tremendous change as a result of the quick development of social media and digital payment methods, which have an impact on visitor behavior, service quality, and business results. This study looks at how social media sites and online payment methods affect India’s tourism industry. In the Indian tourism sector, digital payment systems have become an essential component that improves the ease, effectiveness, and transparency of travel-related transactions. Travel, hospitality, transportation, and related services are increasingly adopting digital payments due to the rapid growth of smartphones, internet connectivity, and government initiatives like Digital India, Unified Payments Interface, and cashless economy campaigns. The significance of digital payment systems in Indian tourism is highlighted in this study, with a focus on how they affect visitor satisfaction, operational effectiveness, financial inclusion, and business performance. Using zWate s statistical methods, the data was examined and the relationships between social media use, the adoption of digital payments, and tourism performance were evaluated. The findings show that tourism stakeholders are well-versed in social media tactics, emphasizing the value of sites like Facebook, Instagram, and travel review sites for customer interaction, itinerary planning, and destination expertise. Due to their ease of use, speed, and security features, digital payment methods like UPI, mobile wallets, debit cards, and credit cards are also very popular, according to the survey. These digital payment methods have a beneficial impact on customer satisfaction and service effectiveness, but social media also has a significant impact on how tourists perceive, trust, and intend to make purchases. According to the study’s findings, the Indian tourist industry may successfully improve long-term growth, competitiveness, and consumer satisfaction by combining social media strategies with digital payment systems.

In recent years, under the influence of the COVID-19 pandemic, China's digital payment system has encountered significant opportunities, challenges, and changes. The digital payment system mainly includes three parts: electronic currency, electronic payment, and digital currency. This paper takes the perspective of the post-pandemic era and integrates the previous research on the digital payment system. It comprehensively analyzes the current situation, challenges, and development opportunities of China's digital payment system from different angles by examining the development of China's digital payment market. It is found that the pandemic has stimulated the continuous development of digital payment, gradually replacing cash settlement. In the post-pandemic era, emerging industries have shown strong vitality for digital payment. However, digital payment also has risks of inadequate information security, digital divide, and private enterprise monopolies. In the post-pandemic era, digital payment has more development opportunities and presents a sustainable development trend with the promotion of legal digital currency, stimulation of emerging industries, and support of government policies. This article proposes corresponding forward-looking suggestions from the perspectives of governments, companies, and individuals to further promote the development of China's future digital payment system in response to the above risks. Specifically, it should improve risk control and data security protection mechanisms, help vulnerable groups cross the digital divide and mobile payment dilemma, and accelerate the promotion and use of China's legal digital currency.

Over the past Twenty Years, digital payment systems (DPS) have evolved significantly, transitioning from early e-payment infrastructures to AI-driven, blockchain-integrated ecosystems shaped by technological innovation, regulatory frameworks, and socio-economic drivers. This study analyzes 871 Scopus-indexed articles using bibliometric and thematic methods to map how DPS research priorities have progressed across regions and themes. Leading contributors include institutions such as Bina Nusantara University and Wuhan University of Technology, with China, India, and the USA dominating scholarship due to large-scale fintech ecosystems and proactive regulatory initiatives, while Africa and South America remain underrepresented owing to structural and policy barriers. Key themes include security, fintech adoption, financial inclusion, and regulatory harmonization, yet gaps persist in standardization and interdisciplinary approaches. Using SPAR-4, TCCM, and ADO frameworks, the study highlights the need for comparative policy research and empirically grounded studies on blockchain, AI, and regulatory convergence. By moving beyond descriptive bibliometric mapping to interpretive insights, the study provides a roadmap for policymakers, researchers, librarians, publishers, and fintech innovators to strengthen secure, efficient, and inclusive DPS ecosystems aligned with global economic and social development.

The digital payment system is playing a crucial role in promoting the financial inclusion programme in India. The main objective of this paper is to analyse the present status of digital payment and financial inclusion in the country. The study, which is based on secondary data, finds that all items of digital payments such as real-time gross settlement (RTGS), retail electronic clearing, prepaid payment investment (PPIs), electronic funds transfer/national electronic funds transfer (EFT/NEFT), immediate payment service (IMPS), usage at point of service (PoS), debit cards, mobile banking, credit cards and a number of ATMs are increasingly being used in India. The performance of digital payment transactions and mobile wallet transactions has been improving. In addition, the performance of financial inclusion programmes indicates that the contribution of public sector banks in terms of the number of accounts opened, balance in accounts and number of RuPay cards issued was the highest in comparison with other banks in India. This study also highlights the major challenges faced by digital banking in the country. The overall performance of digital banking indicates that digital payment is an essential part of financial inclusion in India.

Background: Innovative financial technologies (fintech) are gradually changing how financial transactions and processes are conducted. The adoption of fintech not only benefits the financial sector but can also have a broader impact on society. Due to their ability to provide customized services to a wide range of stakeholders, fintech is gaining traction and experiencing significant growth. Compared to traditional financial institutions, fintech companies can reach a wider audience and operate more efficiently. In addition to upending traditional financial services, fintech can also provide financial services to marginalized groups. We argue that fintech research and practice should focus on seizing opportunities and addressing challenges related to financial inclusion, especially in emerging markets. Method: We conducted a systematic literature review of 178 articles to understand the relationship between fintech and financial inclusion. Results: Our analysis highlights six fintech research themes: fintech and financial inclusion, fintech adoption and use, fintech and sectoral growth, fintech and lending, and technology shaping the fintech. We also present four future themes (basic, driving, niche, and emerging or declining research) that can accelerate financial inclusion. Conclusions: This study highlights the synergies between fintech and financial inclusion research. This study contributes to existing knowledge in three ways. First, the descriptive analysis maps existing research on fintech and financial inclusion. Second, the qualitative analysis provides a comprehensive overview of how fintech and financial inclusion topics is interconnected. Third, future research areas for fintech and financial inclusion were identified. In general, fintech democratizes financial inclusion for the unbanked and marginalized communities while reducing operating costs. Governments should promote financial inclusion among those most vulnerable and affected by global threats.

MSMEs play a vital role in Banten Province’s economy, but often face challenges such as low financial literacy, limited access to financial services, and a digital divide. This study aims to analyze the effects of financial literacy and financial technology (FinTech) adoption on financial inclusion, as well as their positively associated with MSMEs’ financial performance and business sustainability. In addition, the study examines the mediating role of financial inclusion in these relationships. A quantitative approach using PLS-SEM was employed to analyze survey data from 62 curated MSMEs in Banten Province with five respondents per firm (N = 310). The results indicate that financial literacy and FinTech adoption significantly enhance financial inclusion. Financial literacy alone does not directly affect financial performance or business sustainability, highlighting the need for access to financial services to make knowledge effective. Financial inclusion was found to positively influence both performance and business sustainability, emphasizing its critical role. These findings suggest that policymakers and financial institutions should combine efforts to improve financial literacy with expanded access to digital financial services and design more inclusive financial products for MSMEs in Banten Province, rather than generalizing to all Indonesian MSMEs.

Financial inclusion is critical to supporting women’s entrepreneurial endeavors in today’s changing financial landscape. Despite representing the majority of micro and small businesses (SMEs) in Indonesia, women entrepreneurs continue to confront challenges to their development and sustainability. Supply-side discrimination, low financial literacy, restricted access to formal institutions, and a low demand for capital all hinder their ability to obtain finance, which is frequently biased against male entrepreneurs. This study looks at how financial literacy, financial inclusion, and financial access affect entrepreneurial development, firm performance, and sustainability among Indonesian women entrepreneurs. Five hundred forty-two responses were collected from women entrepreneurs during June–July 2024 and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results show that financial inclusion (β = 0.524) and financial literacy (β = 0.296) significantly improve financial access, which positively affects women’s entrepreneurial development (β = 0.484) and business performance (β = 0.383). Women’s entrepreneurial development also contributes to performance (β = 0.364), strongly affecting business sustainability (β = 0.502). Notably, the model explains 55.8% of the variance in women-owned SMEs’ business sustainability (R2 = 0.558), the highest among all endogenous constructs. This study enhances existing knowledge by emphasizing the interrelated roles of financial literacy, inclusion, and access in shaping women’s entrepreneurial ecosystems. This highlights the necessity for specific policies and initiatives aimed at tackling structural obstacles and gender inequalities in the financial sector. Enhancing these components can enable women entrepreneurs, improve SME performance, and foster sustainable, inclusive economic growth in Indonesia.

Digital payment systems have emerged as one of the most significant innovations in the financial landscape, reshaping global commerce and particularly transforming the Indian economy. Since the launch of the Unified Payments Interface (UPI) in 2016, India has witnessed unprecedented growth in cashless transactions. The COVID-19 pandemic further accelerated this adoption, making digital modes of payment an integral part of commerce. This paper examines the impact of digital payments on Indian commerce by drawing on secondary data from the Reserve Bank of India (RBI), the National Payments Corporation of India (NPCI), NITI Aayog, and international organisations such as the World Bank and OECD. The study identifies opportunities such as financial inclusion, transparency, and growth of e-commerce, as well as challenges including cybersecurity risks, digital illiteracy, infrastructural gaps, and regulatory concerns. Comparative insights with global experiences in China, the USA, and Europe are also discussed. Findings suggest that India has become a global leader in digital payments, with UPI serving as a model of innovation. However, achieving sustainable growth requires stronger cybersecurity measures, improved rural digital infrastructure, and broader financial literacy initiatives.