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ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue XI November 2025
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Digital Financial Inclusion and Payment Growth: A Comparative
Assessment of Malaysia and Indonesia
Rohaiza Kamis
Faculty of Business and Management, Universiti Teknologi MARA Cawangan Melaka, 110 off Jalan
Hang Tuah, 75300, Melaka, Malaysia
DOI: https://dx.doi.org/10.47772/IJRISS.2025.91100369
Received: 26 November 2025; Accepted: 02 December 2025; Published: 11 December 2025
ABSTRACT
Digital financial inclusion has accelerated in Southeast Asia, particularly in Malaysia and Indonesia, where e-
wallets and QR-based payments are reshaping financial behaviour and expanding access to digital services. This
conceptual study examines the determinants of digital payment growth in both countries by integrating three
behavioural theories (TAM, UTAUT, TRI), peer-reviewed literature, national policy frameworks, and Scopus
AI–generated thematic and conceptual analyses. The findings show that Malaysia’s adoption is driven mainly by
perceived usefulness, security assurance, and regulator-led infrastructure such as DuitNow QR, while Indonesia’s
adoption is influenced by technology readiness, merchant compatibility, and the widespread diffusion of QRIS
among MSMEs. Persistent challenges include digital literacy gaps, uneven infrastructure, trust and security
concerns, and differences in regulatory maturity. Emerging themes which are environmental sustainability,
Sharia-compliant digital finance, strengthened legal frameworks, and culturally grounded initiatives further
explain variations in adoption behaviour and inclusion outcomes. The study proposes an integrated conceptual
framework linking structural, behavioural, and ecosystem-level factors, and highlights differentiated policy
priorities to strengthen inclusive, resilient, and sustainable digital financial systems in both countries.
Keywords: Digital financial inclusion, digital payments, e-wallet adoption, QRIS, DuitNow QR, fintech ecosystem,
Malaysia, Indonesia
INTRODUCTION
Developments in digital finance have significantly expanded access to financial services, particularly among
vulnerable and underserved communities in developing economies. Financial technology (FinTech) provides
innovations that simplify transactions, reduce barriers to service usage, and enhance overall convenience for
consumers. Within this landscape, e-wallets have emerged as a key enabler, supporting national economic goals
by promoting cashless behaviour, encouraging contactless payments, and accelerating the transition toward a
digitally driven economy (Kamis et al., 2023). In Malaysia, the rapid rise of FinTech solutions has demonstrably
contributed to improvements in technological efficiency and productivity, strengthening both the financial sector
and the broader digital ecosystem.
Digital transformation has reshaped financial ecosystems worldwide, accelerating the shift from traditional cash-
based transactions toward more inclusive, technology-driven payment systems. Transitioning to digital currencies
and contactless payments can establish a safer environment, where financial transactions are both optimized and
safeguarded against unlawful activity (Kamis et al., 2024). In developing economies, advancements in digital
finance are particularly impactful, as they provide vulnerable and underserved communities with new pathways
to access formal financial services. Financial technology (FinTech) innovations which ranging from mobile
banking to QR-based payments have simplified transactions, reduced operational barriers, and broadened
participation in the financial system. Among these innovations, e-wallets and interoperable QR payment systems
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have emerged as central enablers of digital financial inclusion, offering convenient, low-cost tools that support
everyday economic activities.
Malaysia and Indonesia represent two of Southeast Asia’s most dynamic digital payment landscapes. Both
countries have articulated ambitious aspirations to reduce cash dependence, expand formal financial access, and
strengthen digital economic ecosystems. Malaysia’s digital finance environment is characterized by high banking
penetration, early regulatory coordination, and strong institutional infrastructure, including the deployment of
DuitNow QR as a unified national standard. Conversely, Indonesia demonstrates a fintech-led expansion model,
where the rollout of the QRIS standard has rapidly onboarded millions of micro and informal merchants,
significantly deepening financial inclusion across diverse socio-economic segments. These different pathways
reflect each country’s structural realities where Malaysia’s regulator-driven modernization versus Indonesia’s
market-driven, grassroots digital adoption.
Despite these advancements, digital financial inclusion remains uneven in both countries. Challenges persist in
rural connectivity, digital literacy, user trust, cybersecurity, and merchant readiness, factors that continue to
influence the extent to which digital payment growth translates into meaningful financial inclusion outcomes.
Few existing studies provide a direct comparison between Malaysia and other Southeast Asian countries using
consistent measures of digital financial inclusion and the digital divide to evaluate digital payment growth (Bajwa
et al., 2025). Existing research on digital payments in Malaysia and Indonesia, however, remains fragmented
across policy documents (Mahusin & Prilliadi, 2025), sectoral report (Asian Development Bank, 2020; Bank
Negara Malaysia, 2024; World Bank Group, 2023), behavioural studies (Kamis et al., 2024), economic impact
(Widyastuti et al., 2024), and adoption models (Purwatiningsih, 2025), with limited comparative assessments that
synthesize broader structural, institutional, and user-level factors.
In Indonesia and Malaysia, microentrepreneurs have widely adopted e-wallets and ATM debit for business
transactions, while factors influencing adoption differ between the two countries, suggesting tailored approaches
are necessary for each market (Trianto et al., 2025). In Malaysia, factors such as performance expectancy, price
value, facilitating conditions, and social influence significantly impact e-wallet adoption intention (Leong &
Kwan, 2021). Prioritizing structural assurance and addressing trust and security concerns can motivate users to
switch from traditional payment methods to digital solutions (Fareed et al., 2024). QR payments are popular in
Indonesia due to smartphone convenience, aligning with the country's push towards a cashless society. Thus,
streamlining user interfaces, and strengthening security features are recommended to improve QR payment
adoption in Indonesia (Amrullah & Purwanto, 2025). Both Indonesia and Malaysia are making strides in digital
financial inclusion through e-wallets and QR code payments. However, adoption rates and influencing factors
vary, necessitating country-specific strategies to overcome challenges and enhance digital payment usage.
This comparative analysis is grounded in three key theoretical models: the Technology Acceptance Model (TAM)
(Davis, 1989), the Unified Theory of Acceptance and Use of Technology (UTAUT) (Venkatesh et al., 2003), and
the Technology Readiness Index (TRI) (Parasuraman, 2000). These frameworks offer behavioural insights into
the differing levels of digital payment adoption in Malaysia and Indonesia. TAM focuses on perceived usefulness
and ease of use; UTAUT emphasizes performance expectancy, social influence, and facilitating conditions; while
TRI addresses variations in technology readiness and trust. Together, these models inform the discussion of
emerging themes such as security assurance, digital literacy, and the structure of the digital ecosystem forming a
theoretical foundation that links structural factors to digital financial inclusion outcomes in both contexts.
Therefore, this study addresses this gap by providing a comparative analysis of digital financial inclusion and
digital payment growth in Malaysia and Indonesia between 2020 and 2025. Building on the theoretical foundation
provided by TAM, UTAUT, and TRI, along with a structured review of academic literature, national policy
frameworks, financial inclusion indicators, and the evolution of digital payment ecosystems, this research
identifies shared drivers, differing strategic approaches, and emerging challenges within both markets. By
examining trend patterns, institutional contributions, and thematic clusters, the study aims to deepen
understanding of how digital financial inclusion evolves under distinct regulatory, economic, and socio-
technological environments in Southeast Asia.
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METHODOLOGY
This study adopts a conceptual and integrative research design that synthesizes academic theory, sectoral
evidence, and comparative policy analysis, with no primary data collection involved. The source base consists of
peer-reviewed articles published between 2020 and 2025 in Scopus database, alongside authoritative sectoral
reports issued by Bank Negara Malaysia (BNM), Bank Indonesia (BI), the World Bank, ASEAN, ADB, ERIA,
and UNESCAP. Relevant industry analyses from Google–Temasek–Bain, PwC, and KPMG were also included
to provide contemporary insights into digital payment trends and ecosystem developments. The analytical
procedure involved a thematic synthesis of determinants and behavioural models, a sectoral examination of
national digital ecosystems, and a comparative analysis of Malaysia’s and Indonesia’s digital financial pathways,
culminating in the integration of findings into a unified conceptual framework. As this is a conceptual study, no
empirical testing was conducted, and all relationships presented are theoretically derived and intended for future
empirical validation.
This search strategy was designed to ensure a systematic and methodical approach, following three key
subprocesses: identification, screening, and eligibility. All database queries were constructed using reproducible
search strings, the entire process can be documented transparently within the review. The identification stage
involved determining all relevant synonyms, conceptual variations, and associated terms linked to the study’s
core keywords. Given that the focus of this research lies in the post-pandemic period, the dataset was restricted
to publications from January 2020 to 27 November 2025. The search process employed advanced search
techniques; Boolean operators, phrase searching, wildcards, truncation, and field code functions—to maximize
accuracy and comprehensiveness. The final search string used across databases was:
("digital financial inclusion") AND ("e-wallet" OR "QR code payment" OR "QR payment" OR "QRIS" OR
"DuitNow") AND ("adoption" OR "digital payment usage" OR "digital payment growth") AND ("Malaysia" OR
"Indonesia"). The primary database consulted was Scopus AI, selected for its extensive collection of high-quality,
peer-reviewed journals in business, management, and social sciences. Scholars identify Scopus as a core database
for evidence synthesis due to its comprehensive journal coverage (Gusenbauer & Haddaway, 2020). Its interface
supports efficient literature screening and documentation for academic projects. Scopus AI was chosen due to its
advanced capability to generate summaries, expanded summaries, concept maps, and emerging themes, which
together provide a structured overview of literature.
This string was applied across title, abstract, and keywords fields to ensure that both conceptual and empirical
studies were captured. The initial search yielded 120 documents, which were then refined using Scopus AI’s
Summary function to identify emerging themes such as digital financial inclusion and environmental
sustainability, sharia-compliant digital financial services, digital financial inclusion and legal frameworks, and
culturally grounded digital financial initiatives. The Expanded Summary provided deeper insights by linking
digital payment growth with consumer behaviour, regulatory environments, and technological advancements.
To strengthen conceptual clarity, the Concept Maps generated by Scopus AI was employed. The Scopus AI
concept map identified four major thematic clusters which are market trends, adoption factors, QR code
payments, and e-wallet usage; together with related subthemes such as fintech growth, perceived usefulness,
contactless payments, and customer satisfaction. These themes informed the selection of search terms and
supported the development of the study’s conceptual framework. The Scopus AI scan identified four Emerging
Themes consisting of environmental sustainability, Sharia-compliant digital financial services, regulatory and
legal frameworks, and culturally grounded digital initiatives. These themes indicate that digital financial inclusion
is increasingly linked to sustainability agendas, Islamic finance innovation, regulatory strengthening, and
culturally adaptive design. These insights guided the thematic scope and conceptual framing of the study, which
is illustrated in Figure 1.
INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)
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Fig. 1 Conceptual Framework of Digital Financial Inclusion and Payment Growth
RESULTS AND DISCUSSION
The findings of this review are synthesized by integrating insights from three key sources: (i) the summary and
expanded summary of the literature, (ii) the Scopus AI–generated concept map, and (iii) the emerging themes
identified through Scopus AI on 27 November 2025. This structured approach consolidates evidence across
multiple domains while illuminating the theoretical and policy implications of digital payment growth in the
contexts of Malaysia and Indonesia.
Summary and Expanded Summary
The review highlights that digital financial inclusion and the adoption of digital payment methods—particularly
e-wallets and QR code payments—continue to progress in both Malaysia and Indonesia, though the drivers,
challenges, and user behaviours vary significantly between the two countries. Evidence shows that digital
payments are becoming increasingly embedded in daily financial activities, with microentrepreneurs, MSMEs
(Bagas et al., 2025), and younger consumers (Amrullah & Purwanto, 2025) emerging as key adopters. In
Indonesia, microenterprises and university-aged consumers frequently rely on QR payments due to smartphone
convenience and the strong national push toward a cashless society(Agustin et al., 2025). Adoption in this context
is shaped by perceived ease of use, perceived usefulness, technology readiness, facilitating conditions, and trust
in the underlying technology (Agustin et al., 2025). Among MSMEs, QRIS adoption is further influenced by
merchant compatibility, relative advantages, and supportive business conditions (Rettobjaan et al., 2023; Syanova
& Fajar, 2024).
In Malaysia, e-wallet usage is more prominent among younger demographics, driven by perceived usefulness,
convenience, and security (Jamaludin et al., 2024). Structural assurance such as security measures, clear
regulations, and consumer protection plays a crucial role in shaping trust and encouraging sustained adoption
(Shukri et al., 2024). Factors such as performance expectancy, price value, facilitating conditions, and social
influence consistently emerge as significant predictors of behavioural intention to use e-wallets (Leong & Kwan,
2021; Muthusamy et al., 2024). Despite national efforts to promote cashless payments, adoption rates in Malaysia
show fluctuations, indicating that concerns related to trust, risk, and system security continue to influence
consumer behaviour (Fareed et al., 2024).
Across both countries, technological advancements, regulatory support, and smartphone penetration have
accelerated digital payment growth, particularly during and after the COVID-19 pandemic (Amrullah &
Purwanto, 2025; Bagas et al., 2025). However, the review also identifies persistent challenges. In Indonesia,
Moderating effect
Behavioural Constructs
- Perceived Usefulness
- Technology Readiness
- Institutional Trust
- Merchant Integration
Structural Factors
- Regulatory Environment
- Infrastructure Quality
- Digital Literacy Level
- Security Assurance
Digital Payment
Adoption
Emerging Themes
- Environmental Sustainability
- Sharia Compliance
- Legal Frameworks
- Cultural Alignment
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limited digital infrastructure, inadequate digital knowledge, and the cultural preference for cash hinder deeper
penetration of QR-based payments (Basmantra et al., 2024). In Malaysia, although infrastructure is more mature,
issues related to trust and security remain barriers to widespread acceptance (Fareed et al., 2024). These patterns
suggest that while technological readiness is necessary for digital financial inclusion, digital literacy, user trust,
and institutional assurance ultimately determine whether consumers transition from awareness to actual usage.
As shown in Table 1, Malaysia and Indonesia exhibit distinct yet complementary patterns in digital financial
inclusion and payment adoption, where Malaysia’s regulator-structured ecosystem contrasts with Indonesia’s
fintech-driven QRIS expansion, resulting in differing adoption drivers, user profiles, and infrastructural
challenges.The comparative analysis demonstrates that both Malaysia and Indonesia are progressing toward
broader digital financial inclusion, yet each country continues to face distinct structural, behavioural, and
ecosystem-related barriers. Bridging infrastructure gaps, improving digital and financial literacy, strengthening
system security, and reinforcing regulatory safeguards remain critical to sustaining adoption and building user
trust in both markets. A differentiated policy approach is essential to reflect each country’s demographic
characteristics, technological readiness, institutional environment, and merchant ecosystem. By aligning
interventions with these contextual realities, policymakers can accelerate the development of inclusive, resilient,
and sustainable digital payment ecosystems capable of supporting long-term economic transformation.
The differences in digital payment adoption between Malaysia and Indonesia are better understood when
analyzed through the lenses of TAM and UTAUT. In Malaysia, key factors such as perceived usefulness, security
assurance, and institutional support—central to TAM and UTAUT—drive adoption within a regulator-led
ecosystem. Conversely, in Indonesia, dominant influences include facilitating conditions, merchant readiness,
and perceived advantages, aligning with UTAUT’s focus on enabling environments and TRI’s emphasis on
technological readiness. These observations are consistent with emerging themes from the Scopus AI analysis,
particularly around legal frameworks and cultural adaptability, which shape how behavioural intentions are
translated into actual use.
Table 1: Comparative Summary of Digital Financial Inclusion and Payment Adoption in Malaysia vs. Indonesia
Malaysia
Indonesia
Regulator-led ecosystem (BNM,
PayNet). Unified DuitNow QR
infrastructure.
Fintech-led ecosystem supported by BI.
Massive QRIS adoption across sectors.
Youth (Gen Z, students), urban
consumers, digitally literate groups.
MSMEs, microentrepreneurs, informal sector,
and university-aged consumers.
E-wallets (Touch ‘n Go, GrabPay,
Boost), FPX, DuitNow QR.
QRIS-based payments (GoPay, OVO, DANA,
ShopeePay).
Perceived usefulness, ease of use,
security, structural assurance,
performance expectancy, and social
influence.
Smartphone convenience, perceived usefulness,
facilitating conditions, trust, merchant
compatibility, and relative advantages.
Usefulness, ease of use, security
assurance, price value, social influence.
Ease of use, usefulness, technology readiness,
facilitating conditions, risk perception, trust in
technology.
Moderate adoption; stronger in urban
SMEs; QR use steadily increasing.
Very high adoption among MSMEs and
informal merchants due to QRIS
standardization.
High structural assurance; robust
consumer protection and data
governance.
Strong inclusion agenda; QRIS integration;
ongoing improvements in cybersecurity and
consumer protection.
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High-quality, stable digital
infrastructure; gaps mainly in rural/East
Malaysia.
Improving infrastructure; significant disparities
outside Java; connectivity remains a challenge.
Trust issues, security concerns,
fluctuating e-wallet adoption, digital
literacy gaps in rural areas.
Limited digital knowledge, preference for cash,
infrastructure instability, varying digital literacy
across demographics.
Accelerated e-wallet and QR adoption,
especially among youth and urban
consumers.
Boosted MSME adoption of QRIS and
increased reliance on mobile-based payments.
Enhance structural assurance,
strengthen digital literacy, build trust,
expand rural inclusion.
Improve digital infrastructure, strengthen
cybersecurity, enhance digital literacy, simplify
UI/UX for broader adoption.
High digital readiness, steady adoption,
but requires deeper trust-building and
rural penetration.
Rapid, mass adoption through QRIS; strong
growth potential but constrained by literacy and
infrastructure gaps.
Beyond structural and behavioural determinants, the emerging themes identified by Scopus AI which are
environmental sustainability, Sharia-compliant digital finance, legal and regulatory safeguards, and culturally
grounded digital initiatives; provide a broader lens for interpreting digital payment adoption in both countries.
These themes reinforce core constructs in TAM, UTAUT, and TRI. For example, legal and cybersecurity
frameworks directly strengthen structural assurance within UTAUT, while Sharia-compliant financial design
enhances trust, a central construct in TAM. Culturally grounded initiatives shape social influence and perceived
compatibility, explaining Indonesia’s strong grassroots-driven QRIS uptake compared with Malaysia’s
regulatory-led adoption. Likewise, sustainability-linked digital finance aligns with performance expectancy by
offering added social value. Integrating these themes clarifies why adoption trajectories differ between Malaysia
and Indonesia and expands the conceptual interpretation of digital financial inclusion.
Concept Maps
Figure 2, the Scopus AI concept map generated for this study highlights four dominant thematic clusters related
to digital payment adoption: market trends, factors influencing adoption, QR code payment systems, and e-wallet
usage. Each cluster is connected to specific subthemes such as cashless society initiatives, fintech growth,
perceived risk and usefulness, business integration, contactless payment functionality, customer satisfaction, and
e-wallet adoption which collectively illustrate the breadth of determinants shaping digital payment behaviour.
This mapping confirms that digital payment adoption is influenced simultaneously by technological
infrastructure, user perceptions, ecosystem readiness, and broader market developments. These thematic insights
guided the refinement of keywords, the structuring of the literature review, and the development of the conceptual
framework.
Market Trends: Cashless Initiatives and Fintech Growth
Cashless society initiatives have played a pivotal role in accelerating digital payment diffusion in both countries.
Malaysia’s Financial Sector Blueprint 2022–2026 emphasises interoperability through DuitNow QR (Bank
Negara Malaysia, 2022), while Indonesia’s QRIS drives mass merchant integration under the Payment System
Blueprint 2025 (Bank Indonesia, 2024). The ongoing growth of fintech firms further strengthens this shift, as
fintech innovations lower barriers to entry and extend services to previously underserved groups (World Bank
Group, 2023). These trends corroborate evidence that policy direction and ecosystem innovation are foundational
to digital financial inclusion (UN Trade & Development, 2021).
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Fig. 2 Digital Payments Adoption Concept Maps
Factors Influencing Adoption: Risk, Usefulness, and Behavioural Predictors
Perceived usefulness and ease of use remain among the most influential behavioural determinants, consistent
with the Technology Acceptance Model (TAM) (Davis et al., 1989) and UTAUT (Venkatesh et al., 2003). In
Malaysia, younger users adopt e-wallets primarily due to convenience, usefulness, and trust in platform security
(Teo et al., 2020). In Indonesia, adoption is strongly shaped by smartphone convenience, technology readiness,
facilitating conditions, and perceived risk which particularly due to higher exposure to digital scams. These
differences underscore that perceived risk functions as a critical inhibitor, while performance expectancy and
ease of use consistently support digital payment adoption in both markets.
QR Code Payments: Merchant Integration and Contactless Transaction Growth
QR code payments have become central to digital transformation efforts due to their low cost, interoperability,
and ability to scale quickly. Indonesia’s QRIS has enabled more than 30 million merchants including informal
microentrepreneurs, to accept digital payments using a single unified standard (Bank Indonesia, 2024).
Malaysia’s DuitNow QR has achieved similar harmonisation, improving merchant acceptance particularly in
urban and semi-urban regions (Bank Negara Malaysia, 2024). The COVID-19 pandemic further accelerated
contactless payment adoption as users sought hygienic alternatives to cash (OECD, 2022). This indicates that
merchant compatibility, ecosystem integration, and health-related behavioural shifts all reinforce the adoption of
QR-based payments.
E-wallets: Customer Satisfaction and Adoption Patterns
E-wallet adoption reflects broader shifts toward mobile lifestyle integration. Customer satisfaction has been
shaped by transaction speed, ease of use, reward systems, and security. This has been shown to directly influence
retention and continued usage. Malaysia’s e-wallet ecosystem is dominated by Touch ‘n Go eWallet, Boost, and
GrabPay, driven largely by youth adoption and loyalty reward programmes. In Indonesia, super-app ecosystems
(Gojek, Shopee, Tokopedia) underpin e-wallet proliferation, especially among MSMEs. This aligns with studies
showing that perceived usefulness, social influence, and facilitating conditions are key determinants of e-wallet
adoption (Rafiani et al., 2024). These themes reveal that Malaysia and Indonesia are steadily advancing toward
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greater digital financial inclusion, yet each country faces distinct structural, behavioural, and ecosystem-related
challenges. Malaysia’s ecosystem is characterised by strong regulatory assurance, high financial-sector
coordination, and relatively mature infrastructure, while Indonesia’s rapid adoption is fuelled by fintech
innovation, QRIS standardisation, and widespread MSME participation. The findings affirm that digital payment
ecosystems thrive when users perceive high usefulness, low risk, and consistent merchant availability, and when
regulatory frameworks provide clear security and consumer protection structures. To sustain momentum, both
countries must prioritise improved digital literacy, enhanced security features, rural infrastructure expansion, and
culturally adaptable payment solutions. Aligning these strategies with the specific behavioural patterns and
ecosystem conditions identified in the concept map will enable policymakers to accelerate the transition toward
inclusive, resilient, and sustainable digital payment systems.
Building upon the preceding discussion, the emerging themes extend the analysis beyond traditional behavioural
and infrastructural factors by highlighting the deeper socio-cultural, regulatory, and developmental forces that
shape digital financial inclusion in Malaysia and Indonesia. The Scopus AI analysis identified four emerging
themes that expand the conceptual boundaries of digital financial inclusion in Malaysia and Indonesia. Themes such
as environmental sustainability, Sharia-compliant digital finance, legal infrastructure, and culturally tailored
initiatives enhance the theoretical interpretation.
1. Digital Financial Inclusion and Environmental Sustainability- Rising Theme
A growing body of recent work highlights the intersection between digital financial inclusion and environmental
sustainability, particularly in developing and South Asian economies. Digital finance through e-wallets, digital
credit, online remittances, and mobile banking can indirectly reduce environmental impact by lowering dependence
on physical cash, reducing travel for financial services, and promoting paperless transactions (World Bank Group,
2023). More advanced forms of digital financial inclusion, such as precision agriculture credit platforms and digital
insurance, have been shown to reduce agricultural carbon emissions by improving efficiency and resource
management (Van Schoubroeck et al., 2023). This theme complements the discussion by showing that digital
payment ecosystems are not only financial instruments but also enablers of national sustainability agendas,
particularly relevant for Indonesia’s agriculture-heavy economy and Malaysia’s renewable energy incentives.
For Malaysia and Indonesia, digital finance is increasingly integrated with sustainability initiatives, including
renewable energy financing, digital micro-loans for solar adoption, and government incentives tied to sustainable
practices. Such developments suggest that digital inclusion plays a dual role in expanding financial access and
supporting national sustainability agendas. This theme demonstrates that digital finance contributes not only to
economic inclusion but also to environmental resilience, aligning with global green transition objectives. It also
opens new research avenues on how digital payments and digital credit systems can influence energy consumption
and environmental behaviour.
2. Sharia-Compliant Digital Financial Services- Rising Theme
Sharia-compliant digital finance is rapidly emerging as a critical area of development in Malaysia and Indonesia,
given their large Muslim populations and strong Islamic finance ecosystems. The integration of Islamic principles
into digital platforms such as Zakat distribution apps, Waqf crowdfunding systems, Islamic digital banks, and
Sharia-compliant cryptocurrencies, illustrates a shift towards inclusive digital solutions that respect religious values
(Abu-husin et al., 2025). This theme highlights the importance of regulatory harmonisation to ensure that digital
financial services adhere to Syariah principles while maintaining consumer protection, data security, and
transparency. Blockchain technology has been proposed as a mechanism to improve auditability, trust, and Sharia-
compliant verification processes (Abu-husin et al., 2025). This reinforces the role of cultural and religious trust in
adoption behaviour, explaining why Sharia-aligned digital products accelerate inclusion among conservative users
in both countries, aligning strongly with the TAM construct of trust. The rise of Sharia-compliant fintech suggests
that cultural and religious alignment strengthens trust, adoption, and financial inclusion especially among
conservative or underserved populations. This is particularly relevant in Indonesia’s MSME sector and Malaysia’s
growing Islamic digital banking framework.
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3. Digital Financial Inclusion and Legal Frameworks- Rising Theme
As digital financial ecosystems expand, the importance of strong legal and regulatory frameworks becomes
increasingly evident. Malaysia and Indonesia face significant regulatory challenges in areas such as cybersecurity,
digital identity verification, data governance, and consumer protection. Without robust legal structures, digital
inclusion efforts risk undermining user trust, especially among vulnerable groups (OECD, 2022). Digital identity
systems (such as Malaysia's eKYC standards and Indonesia’s Digital ID initiative) are essential for enabling secure
onboarding and reducing fraud (Ly et al., 2022). Equally important are cybersecurity frameworks that prevent data
breaches and build long-term confidence in digital transactions (Barroso & Laborda, 2022). The emergence of this
theme underscores that legal assurance is a cornerstone of sustainable digital financial inclusion, aligning with
global findings that regulatory clarity boosts adoption of digital payments, mobile banking, and e-wallets (Shahen
& Sharaf, 2025). Strengthening law and policy is therefore not only a compliance issue but a foundational driver of
digital trust. This theme also strengthens the discussion’s explanation of Malaysia’s higher structural assurance and
Indonesia’s evolving governance, directly linking regulatory strength to UTAUT’s facilitating conditions.
4. Culturally Grounded Digital Financial Initiatives- Novel Theme
A distinctive novel theme identified in the analysis relates to culturally grounded digital financial initiatives. This
reflects a growing recognition that digital financial solutions must be tailored to cultural norms, behavioural
expectations, and community practices to achieve meaningful and equitable adoption. In Malaysia, examples
include Sharia-compliant digital platforms designed for Muslim communities, culturally sensitive financial literacy
programs, and digital parenting initiatives that introduce safe digital financial practices to households.
Culturally aligned design strategies such as interface localisation, religiously compliant financial features, and
community-based onboarding models are increasingly recognised as essential for overcoming trust barriers and
ensuring inclusive adoption. This theme suggests that digital financial inclusion cannot succeed through technology
alone; it must resonate with cultural identity, belief systems, and community structures. Culturally grounded design
enhances acceptance and strengthens long-term user engagement (Fono et al., 2025). For example, digital security
and identity governance reinforce UTAUT’s structural assurance, while Sharia-compliant systems foster trust, a
key construct in TAM. Culturally embedded designs also influence social norms and perceived compatibility,
helping to explain Indonesia’s grassroots-driven adoption in contrast to Malaysia’s top-down, regulatory-led
approach. This theme explains the behavioural differences between Malaysia’s top-down digitalization and
Indonesia’s community-driven QRIS diffusion, illustrating how cultural resonance shapes social influence and
adoption intention. Incorporating these themes offers a more comprehensive understanding of digital financial
inclusion outcomes in both countries.
CONCLUSION
This review demonstrates that both Malaysia and Indonesia are progressing toward deeper digital financial
inclusion, driven by rapid adoption of e-wallets, QR code payments, and expanding fintech ecosystems. Adoption
patterns between these two countries differ due to variations in structural conditions, user behaviours, and
ecosystem development. In Malaysia, high financial penetration, robust regulatory frameworks, and an integrated
payment infrastructure (DuitNow QR) promotes trust-based adoption, though behavioural change remains
gradual among older and rural populations. In contrast, Indonesia’s fintech-driven growth via QRIS has
accelerated the inclusion of MSMEs and informal merchants yet challenges such as infrastructure limitations lead
to inconsistent usage. These contextual factors shape how behavioural constructs from TAM and UTAUT
manifest, resulting in distinct adoption paths despite both countries using similar digital payment technologies.
Emerging themes such as environmental sustainability, Sharia-compliant digital finance, legal frameworks, and
culturally grounded initiatives, illustrate that digital inclusion is shaped by broader socio-economic and cultural
dynamics.
The Scopus AI derived emerging themes further extend the conceptual boundaries of digital financial inclusion
by highlighting its intersection with environmental sustainability, the rise of Sharia-compliant digital financial
services, the centrality of legal and regulatory safeguards, and the importance of culturally grounded digital
initiatives. These insights underscore that digital inclusion in both countries is not only a technological process
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but also a socio-cultural, institutional, and developmental phenomenon. This study is conceptual and relies solely
on secondary sources, which means the proposed relationships have not been empirically validated. The literature
search was limited to publications from 2020–2025 and may not capture all relevant evidence. Additionally,
Scopus AI summaries and thematic mappings, while useful, may omit nuanced insights present in full-text
articles. Differences in regulatory and market contexts between Malaysia and Indonesia also limit
generalizability. Future studies should incorporate primary data, multi-country empirical testing, and mixed
method approaches to strengthen the model’s validity.
Overall, this study contributes to the theoretical and policy landscape by presenting an integrated conceptual
framework linking structural determinants, behavioural constructs, and ecosystem-level factors to digital
financial inclusion and payment growth. Policymakers in both countries should prioritize targeted interventions
such as strengthening cybersecurity, expanding digital literacy programs, enhancing regulatory assurance,
improving rural infrastructure, and contextualizing digital solutions to cultural and religious norms. Malaysia
requires stronger trust-building measures, cybersecurity governance, and rural digital upskilling, consistent with
the TAM or UTAUT constructs of perceived risk and facilitating conditions. Indonesia requires infrastructural
support, simplified UI/UX for QRIS, and targeted literacy enhancement to improve technology readiness.
Aligning interventions with behavioural constructs and emerging themes (legal assurance, cultural fit, Sharia-
compliant mechanisms) ensures that policy efforts directly address the behavioural and structural drivers revealed
in the comparative analysis. These important to build an inclusive, efficient, and sustainable digital financial
ecosystem capable of supporting long-term economic transformation.
Future research should empirically test the proposed conceptual relationships across multiple countries to validate
behavioural, structural, and ecosystem-level determinants. Comparative modelling using TAM, UTAUT, and
TRI could quantify the influence of perceived risk, security assurance, cultural compatibility, and Sharia-
compliant design. Mixed-method studies are needed to explore rural adoption barriers and merchant readiness,
while longitudinal studies could examine whether sustainability-linked digital finance (e.g., green incentives,
ESG-driven payment features) accelerates inclusion. Further investigation into digital-identity governance,
cybersecurity frameworks, and cultural adaptation strategies will strengthen the understanding of digital financial
inclusion in diverse socio-economic environments.
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