Perceived Trust and Digital Financial Inclusion in Zambia’s Informal Markets: Mediating and Moderating Role of Digital Financial Literacy and Digital Financial Efficacy

Dr. Austin Mwange and Moonga Mumba
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Dr. Austin Mwange: The University of Zambia, Graduate School of Business, Lusaka, Zambia
Moonga Mumba: The University of Zambia, Development Studies Department, Lusaka, Zambia

African Journal of Commercial Studies, 2025, vol. 6, issue 2

Abstract: The aim of the research was to examine the effects of perceived trust on digital financial inclusion mediated by financial self-efficacy and moderated by digital financial literacy. The research focused on informal market traders at the Lusaka City Market. The explanatory research design was employed. Data was gathered using Likert-based structured questionnaires administered to a sample of 361 informal market traders. The stratified random sampling technique was employed. Data was analysed using the Hayes’ PROCESS version 4.2. The study found that perceived trust has significant positive impacts on digital financial inclusion. The study also found that financial self-efficacy significantly mediates the relationship between trust and digital financial inclusion whilst digital financial literacy significantly moderates the relationship between trust and digital financial inclusion. The study recommended for actors in the financial sector of Zambia to implement strategies that can aid in building, restoring and enhancing trust and confidence in digital products and services. The study also recommended the key players in the Zambia’s financial sector including the government to implement financial education programmes targeting informal market traders to enhance digital financial literacy.

Keywords: Digital financial inclusion; perceived trust; informal markets; Lusaka; Zambia; digital financial literacy (search for similar items in EconPapers)
JEL-codes: D14 G21 O33 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:cwk:ajocsk:2025-43

DOI: 10.59413/ajocs/v6.i2.9

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