Digital Payments and Financial Inclusion: A Comparative Analysis of Urban and Rural Areas in Madhya Pradesh

Abstract

This study explores the impact of digital payments on financial inclusion, with a focus on comparing urban and rural areas in Madhya Pradesh. The research aims to identify factors influencing the adoption of digital payments and assess their effects on financial inclusion in these regions. Using a comprehensive methodology involving structured questionnaires and statistical analyses, the study reveals significant disparities between urban and rural areas in terms of digital payment adoption and financial inclusion. Urban areas exhibit higher adoption rates and usage frequency of digital payments, attributed to better internet access and higher digital literacy. Conversely, rural areas face substantial barriers, including limited internet access and low digital literacy, which hinder digital payment adoption. The findings highlight the need for targeted interventions to address these barriers, suggesting improvements in digital infrastructure, tailored digital literacy programs, and enhanced security measures. The study underscores the transformative potential of digital payments in promoting financial inclusion and fostering economic and social development, particularly in developing regions like Madhya Pradesh.