Digitalization and financial inclusion of MSMEs: The Impact of Mobile Payments and Alternative Banking in Morocco in the Face of Emerging Market Challenges

Abstract

This research investigates the impact of financial digitalization (specifically mobile payments) and alternative banking solutions on mitigating liquidity constraints for Micro, Small, and Medium-sized Enterprises (MSMEs) in Morocco. By combining institutional macroeconomic data with micro-economic data from $1,250$ enterprises and employing an interaction econometric model processed under Stata, the study moves beyond linear paradigms of financial inclusion. The findings reveal that while mobile payments exert a direct tension-reducing effect on working capital, their marginal efficacy is strictly conditioned by the manager’s cognitive capital and financial literacy. Furthermore, alternative banking mechanisms generate an algorithmic crowding-out effect, slightly aggravating liquidity pressures for informal enterprises due to strict traceability requirements. Finally, the empirical analysis rejects the hypothesis of a systematic comparative advantage for SMEs over Very Small Enterprises (TPEs), demonstrating that mobile payments acted as a vital digital catch-up shock and operational survival shield for micro-entities. The paper concludes with strategic managerial implications and public policy recommendations for emerging market regulators.

Keywords: Financial Digitalization; Mobile Payments; Alternative Banking; MSME Liquidity Constraints; Financial Inclusion; Informality; Emerging Markets; Morocco.

Received Date: December 20, 2025

Accepted Date: January 12, 2026

Published Date: February 01, 2026

Available Online at: https://www.ijsrisjournal.com/index.php/ojsfiles/article/view/864