GASPRO International Journal of Eminent Scholars

                                                                                  ABSTRACT

The primary objective of this research is to examine the relationship between digital money and financial inclusion within the framework of a cashless society. The study utilizes time-series data spanning from 2007 to 2023. Independent variables include the number of transactions conducted via point-of-sale (POS), mobile, ATM, and internet platforms, while the dependent variable is financial inclusion. The ordinary least squares (OLS) method was employed to estimate the time series data. The regression analysis reveals a statistically significant and positive relationship between POS transactions and financial inclusion in the USA. ATM performance data further indicates that financial inclusion has significantly improved in the USA. Additionally, the results demonstrate a robust and significant relationship between mobile money operations (MMOs) and financial inclusion, as well as a substantial positive link between digital money usage and financial inclusion in the USA. The findings also show a positive and significant correlation between e-bill payments and financial inclusion, suggesting that increased e-bill payments are associated with higher financial inclusion, measured by the number of ATMs per 1,000 individuals. The availability of rapid, reliable, and secure payment options through digital money has the potential to enhance financial inclusion. The research recommends that financial institutions should bolster security measures surrounding these payment mechanisms. Furthermore, the study identifies a shortage of ATMs as a continuing challenge, with many individuals avoiding their use due to perceived difficulties. Addressing issues such as long wait times and machine reliability is essential for improving ATM usage. The findings show the positive impact of digital money on financial inclusion in the USA. Enhancing security measures and addressing ATM-related challenges are crucial steps for further promoting financial inclusion in a cashless society.

Keywords: Financial Inclusiveness, Digital Currency, Cashless Economy and USA