The Role of Digital Payment Solutions in Enhancing Financial Inclusion in Nigeria: A Case Study of Agency Banking and Mobile Money Operations

Isah Yusuf Aruwa, Victor Oluwole Afolabi, Kelin Imariaikowa Obaitan, Olutayo Sunday Shokunbi and Uwalomwa Uwuigbe
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Isah Yusuf Aruwa: Babcock Business School, Babcock University, Ilishan-Remo, Ogun State, Nigeria
Victor Oluwole Afolabi: Babcock Business School, Babcock University, Ilishan-Remo, Ogun State, Nigeria
Kelin Imariaikowa Obaitan: Babcock Business School, Babcock University, Ilishan-Remo, Ogun State, Nigeria
Olutayo Sunday Shokunbi: Babcock Business School, Babcock University, Ilishan-Remo, Ogun State, Nigeria Department of Biochemistry, School of Basic Medical Sciences, Babcock University, Ilishan-Remo, Ogun State, Nigeria
Uwalomwa Uwuigbe: College of Economics, Management, and Information Systems, University of Nizwa, Oman Babcock Business School, Babcock University, Ilishan-Remo, Ogun State, Nigeria

International Journal of Research and Innovation in Social Science, 2025, vol. 9, issue 6, 3795-3809

Abstract: The persistent challenge of financial exclusion in developing economies has led to increased attention on digital payment solutions as potential pathways for expanding access to financial services. This study examined how digital payment solutions impact financial inclusion in Nigeria, with particular focus on accessibility, adoption, and financial well-being outcomes. Using a structured questionnaire administered through convenience sampling, data were collected from 293 respondents aged 18-55 years in South-West, Nigeria. The study employed both descriptive and inferential statistics to analyse the relationships between digital payment adoption and financial inclusion outcomes. The findings revealed that accessibility and adoption of digital payment solutions were primarily influenced by three key factors: user awareness, mobile network availability, and financial literacy. The study demonstrated that digital payment solutions significantly improved the financial well-being of previously unbanked Nigerians, particularly in areas of payment safety, money transfer accessibility, and financial security. However, systemic barriers including digital inequality and infrastructure limitations affected full adoption. Additionally, the study showed that agency banking and mobile money operations have emerged as transformative tools for financial inclusion, especially in under-reached communities, though their effectiveness was moderated by factors such as network reliability and digital literacy levels. The study concluded that while digital payment solutions offer substantial potential for advancing financial inclusion, their success requires a comprehensive approach addressing both technological and socio-economic barriers. These findings have important implications for policymakers, financial institutions, and development partners working to enhance financial inclusion through digital solutions.

Date: 2025
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