The Influence of Digital Based Payment System Innovation on Financial Inclusion and Poverty Alleviation: An Overview of Social Programs in the Sumatra Region

Abstract

This study aims to analyze digital-based payment system innovations towards financial inclusion and poverty alleviation in the context of social programs in the North Sumatra region. Innovations in digital payment systems have provided new opportunities for people who previously found it difficult to access formal financial services. Through the use of digital technology, social programs in the Sumatra region can expand the reach and effectiveness of poverty alleviation efforts. The research methods used are surveys and secondary data analysis. The survey was conducted to collect data from respondents involved in social programs in the Sumatra region. The data was then analyzed to identify the relationship between the use of digital-based payment systems, financial inclusion, and poverty alleviation. The results showed that digital-based payment system innovation has a positive influence on financial inclusion and poverty alleviation in the Sumatra region. The use of digital payment systems facilitates public access to financial services, such as payments, money transfers, and savings. This provides an opportunity for those who were previously marginalized to participate in economic activities and increase financial independence. This research also reveals several factors that influence the successful implementation of digital-based payment system innovations in social programs in the Sumatra region. These factors include adequate technological infrastructure, adequate financial literacy, supportive regulations, and cooperation between various related parties.