Authors: Assistant Professor Spoorthi R, Assistant Professor Dr. Stephen Raj S
Abstract: The advent of digital payment options has emerged as a breakthrough approach to realizing financial inclusion in emerging economies. In this paper, we investigate the impact of adopting digital payments on key factors like the number of accounts, savings, and loans per household in India, Brazil, Kenya, and Indonesia between 2021 to 2025. Using a methodology that involves the use of panel data analysis (sample size n=4,800 households) and structural equation modeling, it has been identified that a 10% rise in digital payments leads to a 6.2% growth in financial inclusion indices. However, there remain disparities in terms of gender and region-wise. It is identified that interoperable digital payments have the greatest impact on financial inclusion.
