Digital payment systems and digital literacy are intricately linked through a causal relationship where higher digital literacy enables individuals to effectively and securely use digital payment platforms. In turn, increased use of digital payments often motivates users to further develop their digital skills, creating a reinforcing cycle of technological engagement.

Digital literacy and digital payment systems are closely interlinked in a two-way relationship. Digital literacy enables users to adopt and navigate payment technologies, while the use of these platforms—especially in everyday transactions—can, in turn, enhance users’ digital skills. This creates a feedback loop that supports broader financial inclusion and digital empowerment (World Bank, 2021; OECD, 2023).