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Impact of Digital Payment Systems on Financial Inclusion: A Case Study of Mobile Money Usage in Kampala, Uganda

This study aimed at examining the impact of mobile money usage on financial inclusion in Kampala, Uganda, with a
focus on the extent to which mobile money influences access to financial services, financial behaviors, and the factors
affecting its adoption, such as transaction costs, accessibility, and security concerns. Using a sample of individuals
and businesses across Kampala, data was collected through surveys and analyzed using multiple logistic regression in
SPSS and STATA. The results indicated that mobile money usage significantly contributed to greater access to
financial services, with transaction costs, accessibility, and security concerns being critical determinants of its
adoption. Specifically, transaction costs (p = 0.002) were found to negatively influence adoption, while accessibility
(p = 0.001) positively influenced usage. Security concerns (p = 0.009) also negatively impacted the extent to which
mobile money services were utilized. Additionally, mobile money users were more likely to engage in positive
financial behaviors, such as saving, accessing credit, and making informed investment decisions, with income level
(p = 0.005) and financial literacy (p = 0.004) significantly contributing to these behaviors. The findings concluded
that mobile money is a key driver of financial inclusion in Kampala, but challenges such as high transaction costs,
security concerns, and limited financial literacy need to be addressed to maximize its potential. It was recommended
that mobile money providers lower transaction costs, enhance security measures, expand accessibility, and promote
financial literacy programs to foster greater adoption. The study also emphasized the need for continued collaboration
between mobile network operator

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