From Awareness to Financial Inclusion: Examining the Adoption Pathway of Digital Payment Systems and Mobile Money Among Farmers in Cross River State                         

Abstract

Financial inclusion remains a pressing challenge in rural Africa, where many smallholder farmers are still excluded from formal financial systems. This paper examined how digital payment systems influence financial inclusion among farmers in Cross River State, Nigeria, focusing on awareness, usage, and the impact of digital payment systems on inclusion.  Survey data from 121 farmers were analyzed using descriptive statistics and a Propensity Score Matching (PSM) model. Results revealed that Awareness was relatively high (75%), though understanding differed with level of education attained. Adoption was uneven: 28 farmers reported moderate use, 25 frequent, 21 occasional, 13 very frequent, and 1 rare use. Logistic regression results, which preceded the PSM, showed that education, income, and loan access encouraged adoption, while farming experience and male gender reduced it. Propensity score matching estimated a 27% increase in financial inclusion among users of the payment systems. The findings also showed that digital payment systems are already expanding access to financial services among farmers, but their impact is uneven. Without improvements in infrastructure and literacy, existing inequalities may widen, leaving poorer and less educated farmers behind. Policymakers and financial providers can use this evidence to design targeted strategies that make digital finance more inclusive and responsive to rural realities. This study offers empirical evidence on the role of digital payment systems in expanding financial access for rural farmers, while drawing attention to the uneven benefits across socio-economic groups.