Digital Financial Inclusion Sustainability in Jordanian Context

Abdalwali Lutfi,Thaer Ahmad Abutaber,Malek Hamed Alshirah,Manaf Al-Okaily,Manal Ali Almarashdah,Ahmad Farhan Alshira’H

doi:10.3390/su13116312

Abstract

Digital Financial Inclusion (DFI) refers to efforts to make digital financial services available and affordable to all individuals and institutions, regardless of their net expense or institution size and demographic location. Despite the immense benefits of DFI and DFI-based products and services such as mobile money and payment systems, users’ acceptance is thin, limited, and disappointing in some developing countries as Jordan. Consequently, this study has investigated the factors influencing the acceptance of the mobile payment system in the Jordanian context. This study’s research model synthesizes the Technology Acceptance Model (TAM) variables and extended the model with perceived financial cost as an independent variable. The research model has been empirically confirmed by fitting the model to data collected from 304 Jordanian citizens using a survey instrument. The data were analysed using Partial Least Squares-Structural Equation Modelling (PLS-SEM). The result has confirmed that behavioural intention to use the m-payment system is significantly and positively influenced by perceived usefulness and perceived financial cost; behavioural intention to use m-payment system was not found to be significantly and positively influenced by perceived ease of use and hence the related hypothesis was not supported. Finally, conclusions and recommendations are further discussed in the last section of this paper.

Highlights

Financial inclusion, including digital payment systems, is not confined to spreading digital services to a larger population; it includes offering quality and diversified financial services at a reasonable cost [1]
Drawing from the Technology Acceptance Model (TAM) model, the results revealed that perceived usefulness is the main factor that influences m-wallet acceptance that is mediated by trust
It is worth mentioning that the Partial Least Squares-Structural Equation Modelling (PLS-SEM) method has taken up a prominent role within the academic literature of many fields in management science, information systems (IS) research

Summary

Introduction

Financial inclusion, including digital payment systems, is not confined to spreading digital services to a larger population; it includes offering quality and diversified financial services at a reasonable cost [1]. Jordan’s interest in developing infrastructure for financial inclusion and the digital banking sector has increased, especially in the mobile payment systems domain. Sustainability 2021, 13, 6312 enhance financial inclusion in the country via mobile phone technology to increase access to formal banking and payment services in the broader population, especially those who could not access the traditional delivery channels such as ATMs, Net Banking, and bank branches. These systems will bring prosperity and socio-economic benefits to underbanked and unbanked population segments. Despite the strong commitment from the Central Bank of Jordan (CBJ) to deepen financial inclusion in a country where less than a quarter of adults have bank accounts, the intended impact has not yet materialized [4]

Objectives

Methods

Results

Discussion

Conclusion