Covid-19 Restrictions and Digital Finance: A Case Study of Digital Payments

This study examines the effects of COVID-19 restrictions on digital payment usage across 103 economies using multilevel modeling. Findings show that these measures have had a significant and positive impact on the growth of digital payments in low- and lower middle-income economies. We also identify significant disparities in how these measures affect financially vulnerable groups. In high-income economies, international travel restrictions help close the digital payment usage gap between the most and least advantaged groups. However, in low- and lower middle-income economies, COVID-19 restrictions have increased this gap. The findings have implications for public strategies to foster greater financial inclusion.