A Comprehensive Survey on Blockchain-Based Digital Payment Systems and Their Impact on Financial Inclusion

Abstract

The increasing speed at which digital payment systems are evolving coupled with the rate at which the blockchain technology is being integrated is restructuring financial systems in the world and redefining financial inclusion. Traditional payment systems might be problematic including excessive cost of transaction, lack of transparency, security risk, and access by underbanked communities. The opportunities to efficiently manage this issue can be offered by the decentralized and transparent architecture of the blockchain technology which increases the efficiency of transactions and removes the middlemen as well as adds the trust to a peer-to-peer platform. This paper has presented a detailed analysis of blockchain-based payment system in digital format in order to identify how they impact financial inclusion. It described the basics of blockchain, the various methods of making a digital payment and how it is possible to compare traditional systems and blockchain system systems. The results reveal the use of blockchain in promoting security, transparency, and financial service provision particularly in the developing nations. It was also noted in the review how blockchain has the potential to empower the unbanked and underserved, in particular, when it comes to the development of inclusive and efficient financial ecosystems. Finally, the study identifies the enduring issues, such as scalability, regulation, and interoperability, and provides some recommendations to attain sustainable and equal digital financial inclusion by innovating blockchain.