The role of government in accelerating financial inclusion through digital payment system

This research investigates the pivotal role of government in accelerating financial inclusion through the development of digital payment systems, with a specific focus on the Malaysian context. The study begins by defining financial inclusion and highlighting the evolution of payment systems from barter to digital methods, underscoring the importance of digital payment systems in modern economies. It identifies the challenges faced in achieving widespread financial inclusion, such as the exclusion of certain populations and barriers to access financial services. The research explores the function of digital wallets in enhancing financial inclusion and analyzes the effects of their growing use on the traditional banking sector. It also examines the factors influencing the adoption of various payment instruments across different demographics in Malaysia. The study uses a mixed-methods approach, combining qualitative insights from interviews with stakeholders, including government agencies and fintech companies, and quantitative analysis of survey data from urban and rural residents in Malaysia. Findings from the research offer valuable insights for policymakers, financial institutions, and other stakeholders in the digital payment ecosystem, providing a basis for strategies to promote financial inclusion, reduce poverty, and foster economic development in Malaysia.