The Role of Digital Payment Systems in Economic Growth in Developing Economy

Digital payment platforms are changing the way money works in developing countries. They offer trustworthy, easy-to-use, and efficient options instead of just relying on cash. More people are now able to access financial services that were once out of reach, which helps them take part in the economy. This paper looks at how digital payments are helping the economy grow, especially in making informal work more formal, supporting small and medium businesses, and increasing financial transparency. By looking at recent data and examples like M-Pesa in Kenya, E-Cedi in Ghana, and UPI in India, this paper shows how these platforms are enabling more people to get involved economically. It also points out ongoing challenges such as risks to cybersecurity, a lack of digital knowledge, and poor infrastructure. The study emphasises the importance of comprehensive policies and collaboration between sectors to address these challenges and fully utilize digital payments as a driver of inclusive, long-term economic growth in emerging markets.