Journal of African Development

Financial inclusion has become a key policy objective in India, aiming to ensure access to affordable and reliable financial services for all sections of society, particularly the unbanked and underbanked population. In recent years, mobile payment applications have emerged as a powerful instrument in achieving this goal by leveraging widespread smartphone adoption, expanding internet connectivity, and the Unified Payments Interface (UPI) infrastructure. Mobile payment apps such as PhonePe, Google Pay, Paytm, and BHIM have simplified digital transactions by offering secure, low-cost, and user-friendly platforms for payments, fund transfers, bill payments, and merchant transactions.

This study examines the role of mobile payment apps in promoting financial inclusion in India by enhancing accessibility to formal financial services, especially in rural and semi-urban areas. The research highlights how these applications reduce dependency on traditional banking channels, minimize transaction costs, and encourage participation in the digital financial ecosystem. Mobile payment apps also support government initiatives such as Pradhan Mantri Jan Dhan Yojana, Direct Benefit Transfer (DBT), and Digital India by facilitating seamless fund transfers and improving transparency.

The study is based on secondary data collected from reports published by the Reserve Bank of India (RBI), National Payments Corporation of India (NPCI), government publications, and existing research literature. The findings indicate that mobile payment apps have significantly increased digital payment adoption, empowered small merchants and self-employed individuals, and contributed to financial awareness and economic inclusion. However, challenges such as digital illiteracy, cybersecurity risks, and uneven internet access remain barriers to universal adoption. The paper concludes that with continued policy support, technological innovation, and digital literacy initiatives, mobile payment apps can play a transformative role in achieving sustainable and inclusive financial growth in India