Mobile Wallets as a Catalyst for Financial Inclusion and MSME Performance in Emerging Markets

Abstract

Background: The rapid growth of financial technology, particularly mobile wallets, offers opportunities to enhance financial inclusion and improve micro, small, and medium enterprises (MSMEs) performance in emerging economies. Yet, empirical evidence linking technology adoption to both financial and business outcomes remains limited, especially in regional contexts. Objective: This study analyzes the determinants of mobile wallet adoption and its impact on financial inclusion and MSME business performance in Pangandaran, Indonesia. Method: A quantitative design was used with data from 202 MSMEs collected via structured questionnaires. The study applies the Technology Acceptance Model (TAM) framework and Structural Equation Modeling–Partial Least Squares (SEM-PLS) to test the proposed relationships. Results: Perceived usefulness and perceived ease of use positively and significantly affect mobile wallet adoption, with ease of use as the strongest predictor. Perceived risk and trust do not directly influence adoption; however, perceived risk significantly affects trust, indicating an indirect relationship. Mobile wallet adoption also significantly enhances financial inclusion and business performance, improving access to financial services and operational efficiency. The strongest adoption path is perceived ease of use (β = 0.453, t = 4.794, p < 0.001); therefore, reducing interface and training barriers is the most immediate lever for MSME digital-payment uptake. Conclusion: This study extends TAM by integrating financial inclusion and firm performance as key outcomes, showing mobile wallet adoption as a strategic mechanism to foster inclusive finance and strengthen MSME competitiveness in emerging regions.