The Mediating Role of Digital Consumer Protection and Digital Financial Literacy with Mobile Money Adaptation and Financial Inclusion in Pakistan

Abstract

This paper reconnoitred the mediating roles of digital consumer protection and digital financial literacy in the connection between mobile money adaptation and financial inclusion in Pakistan.

This paper employs a Partial Least Squares Structural Equation Modeling (PLS-SEM) approach to analyze data from 412 respondents across Lahore, Peshawar, Rawalpindi, and Islamabad. The results highlight that digital financial literacy enhances the positive effects of mobile money adaptation on financial inclusion, while robust digital consumer protection mitigates risks associated with digital transactions. The paper is limited to Pakistan and specific digital financial services, suggesting the need for further research in other developing countries. The paper provides recommendations for policymakers to enhance digital financial ecosystems through targeted educational programs and stricter regulatory measures. This paper offers constructive insights into the roles of digital consumer protection and financial literacy in promoting financial inclusion, contributing to the broader discourse on digital financial services in emerging economies

Keywords Financial Inclusion, Digital Consumer Protection, Financial Literacy, Mobile Banking, Mobile Money, Digital Wallet