Electronic money accessibility and financial inclusion in WAEMU countries: does increased access to electronic money lead to greater financial inclusion?

This article investigates the effect of electronic money accessibility on financial inclusion within West African Economic and Monetary Union (WAEMU) countries. Using annual data from 2010 to 2022, we employ a method of moments quantile regression (MMQR) for estimations. The results show that e-money accessibility stimulates financial inclusion in two ways. First, it extends access to formal financial services in previously underserved rural and peri-urban areas and reduces the financial and physical barriers to accessing financial services. Second, its impact is amplified in countries where the initial level of financial inclusion is already high, suggesting a catalytic effect, particularly for individuals who already have a relationship with traditional financial services. The results are robust when we use the instrumental variables method of double ordinary least squares (IV-2SLS). To improve financial inclusion, it is crucial to develop digital infrastructures to increase accessibility to digital financial services. Investment in human capital through education and robust security measures are essential to build trust and ensure the widespread adoption of digital financial services.This research examines the effect of electronic money accessibility on financial inclusion within within West African Economic and Monetary Union (WAEMU) countries. Our findings demonstrate that e-money accessibility significantly promotes financial inclusion, particularly for rural and peri-urban populations. These results underscore the critical importance of developing digital infrastructure and encouraging the adoption of electronic money to strengthen financial inclusion across the region.