Synthesis of Systematic Review Evidence on Socio-Cultural Factors Influencing the Adoption of Digital Payment Systems among Informal Sector Workers

Abstract

Introduction: Digital payment systems such as mobile wallets, internet banking, and contactless technologies are rapidly transforming financial ecosystems, especially in contexts where formal banking access is limited. These technologies offer speed, security, and convenience while supporting financial inclusion for marginalized groups, particularly in the informal sector. However, their successful uptake is intricately linked to socio-cultural realities, which shape perceptions, behaviors, and willingness to adopt such technologies.

Objectives: This study aims to systematically synthesize existing literature to identify key socio-cultural factors influencing the adoption of digital payment systems among informal sector workers. It investigates how community norms, trust and privacy concerns, economic behaviors, and digital literacy shape the digital financial inclusion process in underbanked populations.

Methods: A systematic review was conducted using Scopus (Q1/Q2) and Google Scholar databases, focusing on studies published in English from 2014 to 2024. Keywords related to digital payment systems, socio-cultural factors, informal sector, and financial inclusion were used. From an initial pool of articles, 42 studies were selected based on rigorous inclusion criteria. These studies employed diverse methodological approaches and were analyzed thematically to derive macro-patterns influencing digital payment adoption.

Results: Four dominant socio-cultural themes emerged: (1) community practices and belief systems significantly influence acceptance or resistance to digital payments; (2) trust in financial systems and data privacy concerns are key mediators of adoption behavior; (3) economic stability plays a central role in enabling or hindering digital financial engagement; and (4) digital literacy and access to contextual education determine usability and sustainability. These findings, spanning across South Asia, Africa, and other developing regions, highlight that adoption is not solely driven by technological availability but by a confluence of socio-economic and cultural realities.

Conclusions: Addressing digital exclusion in informal sectors requires a multidimensional approach that integrates community-driven advocacy, robust trust-building mechanisms, economic empowerment, and customized digital literacy programs. These insights are vital for policymakers, practitioners, and researchers designing inclusive digital financial systems. Future research should examine regulatory environments, infrastructure gaps, and longitudinal behavioral responses post-adoption to provide a more holistic understanding of digital financial inclusion.