Mobile money and blockchain drive financial access in developing economies

Digital transformation in financial services is accelerating economic inclusion across developing and developed markets alike. A new study published in FinTech reveals that digital payment technologies are fundamentally reshaping how individuals access, use, and benefit from financial systems.

Titled "The Role of Digital Payment Technologies in Promoting Financial Inclusion: A Systematic Literature Review," the study aggregates evidence from 37 peer-reviewed papers published between 2016 and 2025 to assess how tools such as mobile money, blockchain, e-wallets, artificial intelligence (AI), and cloud computing contribute to expanding financial inclusion (FI) worldwide. The authors analyze the mechanisms through which digital payments empower individuals, reduce inequality, and enhance the efficiency of financial ecosystems.

The findings confirm that digital payment technologies (DPTs) are not only economic enablers but also powerful instruments of social inclusion, particularly in low- and middle-income countries. However, the study warns that the benefits remain unevenly distributed, with infrastructure gaps, literacy barriers, and weak governance still constraining progress in several regions.

Digital finance and the new frontier of inclusion

The research shed light on how the rapid evolution of digital payment systems has become a cornerstone of inclusive economic growth. By lowering transaction costs, simplifying access, and overcoming geographical barriers, DPTs have opened the door to financial participation for millions previously excluded from formal banking systems.

According to the review, 68 percent of the analyzed studies reported a strong positive relationship between digital payment adoption and financial inclusion. In Sub-Saharan Africa, for instance, mobile money platforms like M-Pesa and Airtel Money have transformed how rural households save, borrow, and transfer funds. Similar progress is documented in South Asia, where India's Unified Payments Interface (UPI) and Bangladesh's bKash have expanded financial access even among low-income users.

The study identifies three key channels through which digital payments advance inclusion:

• Access Expansion: Mobile banking and e-wallets extend services to unbanked populations in remote regions.
• Usage Efficiency: Digital platforms enable faster, cheaper, and more secure transactions, improving trust and adoption rates.
• Empowerment and Autonomy: Women and youth benefit disproportionately, gaining financial independence and control over resources.

However, the study also stresses that the path to inclusion is not uniform. While digital finance has surged in Africa and Asia, the Middle East and North Africa (MENA) region continues to lag behind, with regulatory fragmentation and cultural barriers limiting progress. Even in advanced economies, such as the Euro Area, data show generational divides, young and educated users dominate digital payment usage, while older demographics remain hesitant.

Bridging inequality through innovation

The authors find that the inclusive potential of digital payments depends on how well governments and institutions align technological innovation with supportive regulation and education. DPTs, they argue, can serve as both an economic equalizer and a financial stabilizer when coupled with effective policy design.

In lower-income economies, the study recommends prioritizing mobile network expansion, financial literacy, and gender-sensitive strategies. By focusing on affordable access, these nations can harness digital payment infrastructure to close income and opportunity gaps. For middle-income countries, the authors emphasize the importance of interoperability and small business integration, linking digital wallets, microfinance platforms, and supply-chain financing into a cohesive ecosystem.

In high-income economies, where digital penetration is already advanced, the focus shifts to data governance and cybersecurity. The authors caution that as transactions become increasingly digitized, consumer protection and trust must remain at the forefront. They argue that strong legal frameworks are necessary to prevent fraud, ensure transparency, and maintain financial stability.

Technology, as the study stresses, alone cannot achieve inclusion. In many developing regions, digital illiteracy and infrastructure deficiencies persist as major obstacles. Moreover, affordability remains a barrier for rural users, who often rely on shared or low-capacity devices. The researchers call for public–private partnerships to address these structural gaps, integrating telecom companies, financial institutions, and development agencies to create accessible, user-friendly solutions.

Another emerging challenge is cybersecurity risk. The more widespread digital payments become, the greater the potential exposure to cyberattacks and data breaches. Building secure digital ecosystems, the authors argue, is essential to ensuring that the benefits of financial innovation outweigh the risks.

Policy directions for a digitally inclusive future

The next phase of financial inclusion must go beyond access, it must guarantee resilience, equality, and empowerment. According to the authors, policymakers should not view digital payments as a standalone solution but as part of a broader socioeconomic strategy tied to education, connectivity, and governance.

The review identifies a clear research gap: much of the existing work relies on descriptive methods or small-scale surveys, which limit causal understanding of how digital payments transform economies. The authors advocate for advanced econometric models and cross-country data integration to provide more robust evidence of long-term effects.

They also highlight how artificial intelligence and blockchain can reinforce accountability and transparency in digital finance. AI can improve user profiling and risk management, while blockchain technology enhances trust by recording immutable, verifiable transactions. These technologies, when responsibly managed, could make financial systems both more inclusive and more resilient to fraud and corruption.

The study ultimately calls for a context-sensitive approach to digital financial inclusion, one that recognizes cultural and infrastructural diversity. For instance, in Africa and South Asia, mobile-first ecosystems remain the most effective entry point. In contrast, developed regions require hybrid models that integrate fintech innovation into traditional banking structures without displacing regulatory safeguards.

At the global level, the authors argue that cooperation among international bodies such as the World Bank, IMF, and regional development banks will be vital for standardizing digital finance protocols and ensuring interoperability across borders. They note that shared governance frameworks can accelerate adoption while maintaining ethical and security standards.