THE ROLE OF DIGITAL PAYMENT SYSTEMS IN ENHANCING FINANCIAL INCLUSION FOR MICROENTERPRISES IN EMERGING MARKETS: A CASE STUDY OF SOUTHEAST ASIA

Abstract

The background of this research is based on the increasing adoption of digital payment systems in developing countries, especially in Southeast Asia, as a way to expand financial inclusion for micro enterprises. Micro-enterprises in the region are often marginalized from access to formal financial services due to limited infrastructure and low financial literacy. Digital payment systems have great potential to overcome these barriers and open up wider access to financial services. This study aims to analyze the role of digital payment systems in improving financial inclusion for micro enterprises in emerging markets, with a focus on case studies in Southeast Asia. The research method used is quantitative descriptive with a survey as a data collection technique. The survey was conducted on 2000 micro enterprises in Indonesia, the Philippines, Thailand, and Vietnam. Linear regression analysis was used to test the relationship between the use of digital payments and financial inclusion. The results show that the use of digital payments has a significant influence on increasing financial inclusion, with a coefficient of 0.8581. However, obstacles such as low financial literacy and limited internet infrastructure are still the main challenges in the wider application of this system. Therefore, policies that focus on infrastructure development and increasing digital literacy are urgently needed.