Exploring the Role of Digital Payment Channels in Mitigating Unemployment

Abass Adekunle Adewale, Saheed Akande Shittu and Joseph Kwasi Agyemang

Journal of Business and Social Review in Emerging Economies, 2025, vol. 11, issue 4, 411-426

Abstract: Purpose: The study aimed to discusses how digital payment channels will affect unemployment in Nigeria in the period between 2009 and 2024 with reference being placed on mobile payments, web payment, Point of Sales (POS) transactions, and Automated Teller Machines (ATM).Design/Methodology/Approach: Based on the annual secondary data of the Central Bank of Nigeria (CBN) and World Development Indicators (WDI), the research will use Elastic Net regression and the Granger causality tests to determine the relationship between digital financial inclusion and employment outcomes.Findings: The results identify that mobile payments and web payments greatly minimize unemployment and show that POS and ATM payments have the potential of encouraging job creation as well as that the transactions may lead to temporary rise in unemployment as a result of automation overburdening labor. The outcomes of Granger causality indicate that these digital channels can forecast the time changes in unemployment.Implications/Originality/Value: The research notes that the issue of digital financial inclusion is pivotal in determining the dynamics in the labor market in Nigeria and suggests policies that increase access to mobile and web-based payment systems, improve digital literacy, and limit the effects of automated banking interfaces on employment.

Keywords: Digital economy; Digital payment channels; Economic impact; Financial inclusion; Unemployment reduction (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:src:jbsree:v:11:y:2025:i:4:p:411-426

DOI: 10.26710/jbsee.v11i3.3507

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