The Effect of Financial Literacy and Mobile Payment on Financial Inclusion

Abstract

Angola faces a number of challenges related to financial inclusion. The country's financial system is underdeveloped, with a low penetration of banks and a lack of access to basic financial services. However, access to financial services can be increased by the use of financial technology in which mobile payment is one of the instruments. Therefore, the aim of this research is to examine the effect of financial literacy and mobile payment on financial inclusion. The study also examined the role of risk perception in mobile payment adoption. Data was collected through a questionnaire administered to 282 consumers, employing Smart-PLS for analysis. The results indicated that financial literacy promotes financial inclusion. On the other hand, mobile payment adoption does not promote financial inclusion. Finally, risk perception has a negative impact on mobile payment adoption. The research contributes to the literature by supporting previous studies on the diffusion of technology and highlights the potential of mobile money as a tool to promote financial inclusion.