Financial Inclusion and Small Business Performance: Mediating Role of POS Technology in Ekiti State, Nigeria

Background: Financial inclusion and technological adoption are key enablers for small business growth in developing countries. To our knowledge, the synergies between these factors and financial literacy have been rarely examined. This study investigates the impact of financial inclusion on SME performance via Point-of-Sale (POS) adoption and tests whether financial literacy moderates?the indirect effect. Design: Anchored in the Resource-Based View (RBV), the study conceptualizes financial literacy and digital adaptability as the strategic assets that contribute to the firm competitive advantage. Methods: Drawing on a sample of 392 small businesses in Ekiti State, Nigeria,?the study employs PROCESS Macro Model 4 and 14 to analyze data examining the mediation and moderated mediation effects, applying 5,000 bootstrapped samples for robustness.. Findings: Financial inclusion positively influenced?the performance of SMEs (B = 0.326, p < 0.001). POS adoption mediated this association?partially (Indirect effect = 0.087, 95% CI [0.042, 0.146]), revealing that integration of digital payment enhances performance output. Financial literacy also moderated the indirect path?(Interaction = 0.112, SE = 0.039, p < 0.01), suggesting that literate entrepreneurs obtain higher performance benefits towards POS adoption. Conclusions: Financial inclusion, POS adoption, and literacy may function as cumulative resources that enhance SME resilience and growth. With progress on the expansion of digital infrastructure and financial literacy, the findings suggest that there will be more conversions?of inclusion policy into actual business performance in Nigeria.