Final answer:
Theories on digital financial literacy suggest that increased familiarity with financial technology may lead to greater use of online payment services due to heightened demand. Sociological and economic factors influence the adoption of these services, and increased literacy could contribute to a more inclusive and stable financial environment.
Step-by-step explanation:
Theories on Digital Financial Literacy and Online Payment Use
The theories on the impact of digital financial literacy on the use of online payment services are varied and stem from different academic disciplines. One perspective applies the basic principles of supply and demand to analyze the adoption and usage of financial technology (fintech). As digital financial literacy increases, the demand for online payment services is expected to rise, since consumers are more aware of the convenience and efficiency these services provide. Moreover, literature from the field of sociology, such as the work by Guillén and Suárez, points to economic, political, and sociological factors influencing digital divides, which in turn affect internet use and could be linked to online financial services adoption.
Additionally, current events like the COVID-19 pandemic have caused a shift in consumer behavior, leading to more digital transactions and less physical currency use. This episode reflects larger societal trends moving away from traditional payment methods like cash, and transitioning towards electronic forms like mobile payments and cryptocurrencies.
An analysis of different theories and empirical studies suggests that digital literacy doesn't just facilitate greater adoption of online payment services, but could also contribute to a more stable and crime-free economic environment. This implies that improving digital financial literacy could potentially reduce the negative externalities of certain financial services, like payday lenders, and foster a more inclusive financial ecosystem.