Emerging role of E-wallets in increasing financial inclusion: The case of Vietnam

Abstract

Financial inclusion is considered an essential tool for the sustainable economic development of a nation. This study uses binary regression models with 375 observations from a survey of workers
and farmers in rural areas of Vietnam between November 2021 and January 2022 to evaluate the factors affecting individual ownership of an e-wallet account and the role of using e-wallets on financial inclusion. The results show that the independent variables affecting the probability of individuals owning an e-wallet account are age, education level, income, occupation and marital status. In addition, individuals using e-wallets tend to perform more non-cash payment transactions such as money transfer, utility bills payment and online purchase. Based on the discussion of these results, the authors propose a number of recommendations to promote the effective implementation of e-wallets as a means of promoting financial inclusion in Vietnam.