Green recovery through financial inclusion of mobile payment: A study of low- and middle-income Asian countries

The financial industry has been affected by the rise of informational technology and is actively developing digital finance. The use of technology has become an alternative resolution to improve global financial inclusion. This research discusses whether the development of mobile payment systems promotes financial inclusion and improves green environment in 29 low- and middle-income countries in Asia from 2014 to 2018. We utilize the outstanding bank deposit ratio and bank loan ratio as measures of financial inclusion and three measures for mobile payment. This study considers green recovery under an education indicator that shows awareness about the implementation of green recovery technologies. We find that some amount from loans is also useful when spent on green recovery in the move towards a clean environment. The empirical investigation notes a significant impact from mobile payment to financial inclusion development with the effect from mobile payment to financial inclusion more critical for lower- than higher-income countries in the sample. The empirical findings offer concrete evidence to encourage mobile payment ecosystems through the cooperation of government, financial institutions, and technology companies. A few policy implications are presented at the end of the study.