The Role of Fintech Payment Instruments in Improving Financial Inclusion

Authors

J. Ali Mustafa, Department of Financial and Accounting Sciences, Faculty of Business, Middle East University, Amman, JordanFollow
A. Marie, Department of Financial and Accounting Sciences, Faculty of Business, Middle East University, Amman, JordanFollow
A. Al-Amarneh, Department of Financial and Accounting Sciences, Faculty of Business, Middle East University, Amman, JordanFollow
A. Al-Abbadi, Department of Finance, Faculty of Business, the World Islamic Science and Education University, Amman, JordanFollow

Abstract

This study examines the role of Fintech payments instruments in evolving accounts ownership as- a master indicator of financial inclusion; to determine if their effectiveness differs according to the different income levels of countries. The sample of the study consists of a panel of twenty-two countries over the period 2010-2020. The database is gathered from the Global Findex; 2021 edition of World Bank. The account ownerships are regressed on Fintech instruments using (FMOLS) method. The results had shown a significant effect of digital remittances, debit and credit cards; and macroeconomic indicators on financial inclusion, in high and middle-income countries, indicating that Fintech payment instruments had been accelerated financial inclusion, but with different levels due to the variation in technological developments and low level of financial literacy. An insignificant effect of the S&P indicator across varying income countries had shown the need for more attention to Fintech and financial literacy to accelerate financial inclusion. In addition to that, countries should work to develop and strengthen of the communication and information infrastructure especially, in developing countries, in order to activate the role of financial technology.

Recommended Citation

Ali Mustafa, J.; Marie, A.; Al-Amarneh, A.; and Al-Abbadi, A. (2023) "The Role of Fintech Payment Instruments in Improving Financial Inclusion," Information Sciences Letters: Vol. 12 : Iss. 6 , PP -.
Available at: https://digitalcommons.aaru.edu.jo/isl/vol12/iss6/37