Financial Inclusion without Economic Resilience: Revisiting the Impact of Digital Payments on Poverty Outcomes in Rural Zimbabwe

Abstract

This study employed structural equation modelling (SEM) to explore the relationship between the adoption of digital payment technologies, financial inclusion and socio-economic implications in Zimbabwe. A model established the effects of digital adoption on financial inclusion and socioeconomic impacts using data from a survey of 221 rural residents in Gutu District of Masvingo Province of Zimbabwe. The results indicate that the adoption of digital payments is mostly influenced by structural and behavioural factors, particularly digital availability, trust and social influence. The extensive adoption of digital payment platforms was mostly limited to transactional tasks, such as remittances and payments, with use on transformative applications like savings, investment and income generating activities being limited. The study further identifies a “resilience gap,” whereby increased access to and use of digital financial services does not necessarily translate into broader livelihood transformation or sustained economic resilience outcomes. Digital payments use promoted short-term coping and financial mobility with limited impact on longerterm outcomes such as wealth accumulation, income stability and livelihood diversification. The research recommends the need to move from access-oriented policies towards integrated approaches that promote productive use of digital finance, build confidence and embed digital financial systems into broader long-term rural development frameworks.