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Perceived Trust and Digital Financial Inclusion in Zambia’s Informal Markets: Mediating and Moderating Role of Digital Financial Literacy and Digital Financial Efficacy

Author

Listed:
  • Dr. Austin Mwange

    (The University of Zambia, Graduate School of Business, Lusaka, Zambia)

  • Moonga Mumba

    (The University of Zambia, Development Studies Department, Lusaka, Zambia)

Abstract

The aim of the research was to examine the effects of perceived trust on digital financial inclusion mediated by financial self-efficacy and moderated by digital financial literacy. The research focused on informal market traders at the Lusaka City Market. The explanatory research design was employed. Data was gathered using Likert-based structured questionnaires administered to a sample of 361 informal market traders. The stratified random sampling technique was employed. Data was analysed using the Hayes’ PROCESS version 4.2. The study found that perceived trust has significant positive impacts on digital financial inclusion. The study also found that financial self-efficacy significantly mediates the relationship between trust and digital financial inclusion whilst digital financial literacy significantly moderates the relationship between trust and digital financial inclusion. The study recommended for actors in the financial sector of Zambia to implement strategies that can aid in building, restoring and enhancing trust and confidence in digital products and services. The study also recommended the key players in the Zambia’s financial sector including the government to implement financial education programmes targeting informal market traders to enhance digital financial literacy.

Suggested Citation

  • Dr. Austin Mwange & Moonga Mumba, 2025. "Perceived Trust and Digital Financial Inclusion in Zambia’s Informal Markets: Mediating and Moderating Role of Digital Financial Literacy and Digital Financial Efficacy," African Journal of Commercial Studies, African Journal of Commercial Studies, vol. 6(2).
    • Handle: RePEc:cwk:ajocsk:2025-43
    DOI: 10.59413/ajocs/v6.i2.9
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    References listed on IDEAS

    as
    1. Ozili, Peterson K, 2022. "Digital financial inclusion," MPRA Paper 113789, University Library of Munich, Germany.
    2. Kampamba Chibesa & Austin Mwange, 2025. "The Role of Digital Financial Literacy in Enhancing Financial Inclusion Among Informal Entrepreneurs in Zambia," East African Finance Journal, East African Finance Journal, vol. 4(1).
    3. Ozili, Peterson K, 2020. "Theories of financial inclusion," MPRA Paper 101810, University Library of Munich, Germany.
    4. Akinwumi Sharimakin & Anthony Enisan Akinlo, 2024. "Measuring financial inclusion: a survey-based approach," International Journal of Services, Economics and Management, Inderscience Enterprises Ltd, vol. 15(6), pages 623-649.
    5. Favourate Y. Mpofu, 2023. "Digital Financial Inclusion and Digital Financial Literacy in Africa: The Challenges Connected with Digital Financial Inclusion in Africa," Advances in African Economic, Social and Political Development, in: David Mhlanga & Emmanuel Ndhlovu (ed.), Economic Inclusion in Post-Independence Africa, chapter 0, pages 123-147, Springer.
    6. Udit Chawla & Rajesh Mohnot & Harsh Vikram Singh & Arindam Banerjee, 2023. "The Mediating Effect of Perceived Trust in the Adoption of Cutting-Edge Financial Technology among Digital Natives in the Post-COVID-19 Era," Economies, MDPI, vol. 11(12), pages 1-21, November.
    7. Maha Shehadeh & H.M. Dawood & Khaled Hussainey, 2024. "Digital financial literacy and usage of cashless payments in Jordan: the moderating role of gender," International Journal of Accounting & Information Management, Emerald Group Publishing Limited, vol. 33(2), pages 354-382, August.
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    Cited by:

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    Keywords

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    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance

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