Digital Payments, Fintech Trends and Shadow Economy in South East Asia Socio-Economic Realities And Suggestions for Further Research

Abstract

The advancement of Fintech technological progress in emerging countries has accelerated the role of digital finance in economic development. Digital finance assists in financial inclusion, although emerging countries remain in the clutches of an informal and shadow economy which reduces the official GDP and the taxable income revenue, creating pressure on inclusion prospects. Using different contributions, the current study attempts to analyze the impact of digital finance on the shadow economy among selected South East Asian countries. It appears that digital payments can significantly reduce the size of the informal and shadow economy and are now an essential component in the public policies governments can implement to increase the official GDP, boost the tax revenue and finally to stimulate a real, balanced and sustainable development.