Mobile money as a mechanism for financial inclusion of MYPES in the province of Cusco

Abstract

The objective of this research article was to determine and analyze the impact of electronic money on the financial inclusion of MSMEs in the Province of Cusco. A survey was applied to 98 owners and managers of micro and small enterprises. Partial least squares structural equation modeling (PLS-SEM) was used to process the data. The results indicate that the use of electronic money has a medium direct effect on access to financial services (R2 = 0.278), and a high direct effect on the quality of financial services (R2 = 0.585), while it does not have a substantial direct effect on the use of financial services (R2 = 082), from which it can be concluded that the adoption of electronic money constitutes a mechanism for financial inclusion. Overall, this research contributes to the construction of a so far underdeveloped literature on the impact of mobile money in the context of the digitization of the financial system.