The Transformative Influence of Digital Finance on Rural Women's Financial Inclusion: Evidence from Kenya |Chapter 6 | New Advances in Business, Management and Economics Vol. 10

 

Financial inclusion refers to the process of ensuring access to financial services and providing timely and adequate credit when needed by vulnerable groups like the weaker sections and low-income groups at an affordable cost. Over the past decade, significant progress has been made in increasing financial inclusion worldwide; however, disparities still exist. Digital finance has emerged as a transformative solution to address this critical issue. This chapter explores the significant impact of digital finance on the financial inclusion of rural women, a group that has historically been underserved by traditional banking services due to geographical and socio-cultural barriers. Using a cross-sectional descriptive design with a sample of 961 rural Kenyan women, the chapter utilized Partial Least Squares Structural Equation Modeling (PLS-SEM) and the Chi-Square test of independence to assess the relationship between digital finance adoption and financial inclusion. The findings reveal a strong positive relationship between the use of digital financial systems and increased financial inclusion. The PLS-SEM analysis produced a path coefficient (β) of 0.728, indicating a significant direct influence. The R-squared (R2) value was 0.530, which means that digital finance accounts for 53% of the variance in financial inclusion. Additionally, the chapter found a very substantial effect size (f2) of 1.129, far exceeding the threshold for a large effect, confirming the practical significance of this relationship. The Chi-Square test of independence further reinforced these findings with a Pearson Chi-Square value (χ2) of 158.715 and a p-value of .000. This value is significantly higher than the critical values of 3.841 (α=0.05) and 6.635 (α=0.01) at one degree of freedom, leading to the rejection of the null hypothesis and confirming a statistically significant association between digital finance and financial inclusion. Despite these positive findings, the average digital finance score among rural women was 6.609, which is below the target threshold of 8, indicating low overall adoption. However, the study also found that over half of the respondents (70.27%) owned a mobile device and a significant majority (66.14%) had mobile money accounts, highlighting the widespread nature of mobile money in the region. Overall, the study demonstrates that digital finance provides a secure and convenient way to save and transact, serving as a gateway to formal financial services and entrepreneurial opportunities for rural women. The results emphasize the need for targeted digital literacy programs and supportive policies to empower rural women and ensure equitable financial inclusion.

 

 

Author(s) Details

Mildred Amugune
School of Business, Economics, Hospitality and Tourism Management, Machakos University, Kenya.

 

Josephat M. Kiweu
School of Business, Economics, Hospitality and Tourism Management, Machakos University, Kenya.

 

Charles Ombuki
School of Business, Economics, Hospitality and Tourism Management, Machakos University, Kenya.

 

Please see the book here :- https://doi.org/10.9734/bpi/nabme/v10/6294

Integrated Payment Systems: Safeguarding Transactions and Elevating Service in Petro Retail | Chapter 5 | Business, Management and Economics: Research Progress Vol. 7

Customer buying habits have evolved significantly with the rise of technology adoption, especially in retail. This shift is particularly noticeable in petro retailing in India, where technology has begun to shape consumer experiences. However, alongside this progress, there has also been a notable increase in reported incidents of fraud affecting customers over the past few years. While technology has been integrated into petro retailing, there remains a gap in addressing these fraudulent activities, which, in turn, negatively impacts customer satisfaction and tarnishes the brand image of service providers and the industry as a whole.

This study focuses on the implementation of an "Integrated Payment Mechanism" designed to ensure customers make accurate payments for their fueling services. Feedback was collected through a quantitative questionnaire, with survey samples gathered using a convenience sampling method. The results indicated that this technology-driven solution significantly improves the efficiency of the fueling process, reduces fraud by enabling multiple payment methods, and provides a "proof of service" via SMS confirmation. By minimizing customer grievances, the solution enhanced overall customer satisfaction. The findings from this study have been instrumental in redesigning the service landscape and bridging service gaps through a technology-led approach. Given the sharp increase in the usage of digital payment

methods by customers and the increase in fraud customers, Oil Marketing Companies in India should adopt an integrated payment mechanism across all the fuel stations for a uniform experience for the customers. This shall help in the reduction of frauds with enhanced usage of digital payment.

 

Author (s) Details

Santanu Purohit
School of Business, University of Petroleum & Energy Studies, Dehradun, India.

 

Sujoita Purohit
Department of Science, Mohanlal Sukhadia University, Udaipur, Rajasthan, India.

 

Please see the book here:- https://doi.org/10.9734/bpi/bmerp/v7/2847

Challenges and Opportunities for Digital Payments in Rural India: Impacts, Initiatives, and Policy Considerations | Chapter 11 | Contemporary Research in Business, Management and Economics Vol. 2

 In this study, the factors that impact and support towards digital transactions in rural economy is reviewed taking stock of current trends, market analysis, readiness of the infrastructure and the stakeholder accountabilities, to gain insights to the critical success factors to be addressed. The economic progress of India is greatly influenced by its rural areas. Therefore, it is imperative to improve the digital payments model trends in rural India in light of the impact of demonetisation, emerging changes in ICT penetration, and ongoing digital initiatives for rural populations. It is imperative that the shift to digital payments, even in the rural economy, is accelerated in light of the advantages such as increased ease of doing business, potential to reduce the parallel economy, and transaction transparency. Some of the revolutionary developments in the recent past like launch of many digital wallets like – Paytm, Mobiwik, Free Charge etc. and government launching many UPI (united payment interface) solutions and BHIM app for smooth transition to digital payments, there are significant developments taking place.

Stats from the market research also depict considerable rise in digital transactions post de-monetisation period. In terms of challenges, certain key factors like limited options for digital transactions based on feature phones, issues of awareness towards digital transactions, constraints of PoS transactions etc are some of the intrinsic issues that impact the digital transactions. Considering the quantum of opportunities that are unfolding for market dynamics of digital payments, if the challenges that are discussed are addressed and improved solutions in terms of UPIs, mobile wallets, and digital transactions with more secured features, ease of transactions and reduced cost of managing the digital payments could lead to more potential developments and supporting in improved conditions of digital payments processing in rural sectors.

Despite the fact that the social trends are being very positive in rural segments for embracing the digital payments, still there are considerable challenges too in succeeding the paradigm shift. The futuristic steps like enabling digital payment transactions based on Aadhar numbers could be a game changers if handled effectively. It is imperative from the review of research reports, statistics over the digital payment trends, that if some of the key macro challenges, business limitations and consumer related issues are addressed, there could be potential developments envisaged in the process.

Author(s) Details:

S. Md. Shakir Ali,
Department of Digital Business, Lithan Academy (eduCLaas Pte Ltd.), Singapore.

Md. Wasim Akhtar,
Council for Social Development (CSD), Hyderabad, India.

S. K. Safiuddin,
Department of Management, Maulana Azad National Urdu University, India.

Please see the link here: https://stm.bookpi.org/CRBME-V2/article/view/13697

Keywords: Digital payment, rural ecommerce, UPI, BHIM, M-wallet, digital divide, rural and urban India, government, PoS, digital transactions, demonetization, opportunities for digital payments

From Cash to Code: Digital Payment Adoption and Its Ripple Effects on Economic Landscape in Indian Petro-Retail | Chapter 2 | Contemporary Research in Business, Management and Economics Vol. 2

The pervasive influence of digitalization has transformed operations across industries, enhancing efficiency and effectiveness at every stage. Concurrently, the widespread exposure to modern technologies and social media has shaped customer behaviour and expectations. The COVID-19 pandemic has further accelerated the adoption of digitalization, emphasizing the global imperative for safe, secure, and hygienic processes. This shift is particularly evident in the realm of digital payments, which has undergone a substantial transformation in the global market and has become crucial in the context of the evolving Petro Retail industry. This paper investigates the extent of digital payment adoption and its impact on the Indian Petro Retail landscape, considering the industry's transition from a "Product-based" to a "Service-based" model. The integration of digital technologies has revolutionized the functioning of various industries, influencing operational efficiency and effectiveness. Concurrently, changes in customer behaviour and expectations, driven by technology and social media, have reshaped the landscape. The COVID-19 pandemic has accelerated the global shift toward digitalization, highlighting the imperative for safe, secure, and hygienic processes. In this context, the adoption of digital payments plays a pivotal role, particularly in the Petro Retail industry, which has witnessed a significant transformation. This study employs a comprehensive approach to assess the extent of digital payment adoption in the Indian Petro Retail sector. Data collection involves a thorough examination of industry trends, customer preferences, and technological advancements. Surveys and interviews are conducted with stakeholders to gauge their perspectives on the impact of digitalization on payment processes in Petro Retail. The findings reveal a noteworthy shift in the Petro Retail landscape, indicating a substantial adoption of digital payments. The industry's transition from a traditional "Product-based" model to a more service-oriented approach has been accompanied by a surge in the use of digital payment methods. The results also highlight the industry's responsiveness to the global demand for safe and secure payment processes. The implications of digital payment adoption in Indian Petro Retail are discussed, considering the industry's evolving nature. The shift from product-centric to service-centric offerings aligns with the changing preferences of customers, emphasizing the importance of safe, secure, and hygienic payment methods. The discussions delve into the challenges and opportunities presented by this digital transformation, addressing both industry and consumer perspectives. The paper concludes by outlining the broader implications of digital payment adoption in Indian Petro Retail. Insights from this study can inform industry stakeholders, policymakers, and businesses on the significance of embracing digitalization for enhanced safety, security, and hygiene. The findings contribute to the ongoing discourse on the intersection of digital technologies and the Petro Retail sector, offering valuable insights for future strategic planning and decision-making.

 

Author(s) Details:

Santanu Purohit,
School of Business, University of Petroleum & Energy Studies, Dehradun, India.

Sujoita Purohit,
Mohanlal Sukhadia University, Udaipur, Rajasthan, India.

Please see the link here: https://stm.bookpi.org/CRBME-V2/article/view/13663