Mobile phone ownership is widespread. Why is digital inclusion still lagging?

The increasing use of mobile phones is making a range of digital resources more widely available to people across the income spectrum. Eighty-four percent of adults in developing countries now have their own phone—a promising finding from the inaugural Global Findex Digital Connectivity Tracker.

Yet, about one-in-four of these adults have a more affordable basic phone, with streamlined functionality and no internet browser. That leaves only two-thirds of all adults owning full-featured smartphones that allow for apps and browsers. 

We know smartphones are the primary way that people in developing countries access the internet, so often those without them are cut off from the communication, information, and income-generating opportunities that digital channels provide. To create more equitable digital economic opportunities, especially for poorer adults and women, we must address the barriers to and risks of digital inclusion, starting with access to smartphones.

The on-ramp for digital activities 

Smartphone ownership is a key driver of digital inclusion, but access remains uneven, especially for women and lower-income adults. Those in the poorest 40 percent of households are 8 percentage points less likely to own a phone than their wealthier peers, and women are 9 points less likely than men. While basic phone ownership is more evenly distributed, the gap is largely due to disparities in smartphone access, which is essential for internet use and engaging in an array of digital activities.

Regionally, smartphone ownership ranges widely, from around 80 percent of adults in East Asia, the Pacific, and Europe and Central Asia to just 33 percent in Sub-Saharan Africa and 40 percent in South Asia (see Map 1). These regional patterns closely mirror differences in digital activity, such as social media use, online learning, and earning income through digital platforms (see Figure 1). In regions with low smartphone access, women are even less likely to own these devices, making it harder for them to participate in digital life and reinforcing broader inequalities.

Map 1: Smartphone ownership worldwide

Figure 1: Digital use cases, by order of popularity

Barriers to digital inclusion

Adults without a smartphone often face the same barrier: cost. By far, the largest share of respondents in South Asia and Sub-Saharan Africa, where ownership levels are lower, said they could not afford the device.

Overcoming these supply-side barriers may not be as simple as offering free or subsidized devices. Research in Tanzania and Malawi, for instance, shows that when women are given free devices, they often either sell them for their cash or a family member takes control of them. 

Efforts to promote digital connectivity must also go beyond just making devices more accessible. While device costs top the list as the main digital inclusion barrier, people often cite other challenges too to owning a mobile phone. These include the cost of mobile data, difficulty reading and typing, or relying on someone else’s phone. Like device costs, mobile data affordability doesn’t seem to have a simple solution. For example, free Wi-Fi is commonly available at local libraries and cafes, but only a small share of adults—5 percent on average in developing economies—take advantage of it. 

Lack of identification (ID) also remains a barrier to accessing and using mobile technology. A SIM card—essential for connecting to mobile networks and storing owner information—often requires ID to purchase it. In many countries, services like mobile money and digital work platforms also require the SIM to be registered in the user’s name to verify identity and enable transactions or payments.

In six of the eight economies with the lowest ID ownership rates (below 70 percent of adults), the most commonly reported challenge among adults without ID is difficulty buying and registering a SIM card. (Data on foundational and digital ID was collected through a partnership between the Identification for Development (ID4D) initiative and the Global Findex.) 

Considering security and consumer protection 

Any effort to expand digital inclusion must also account for the risks people face, especially those who are less digitally savvy. Almost 20 percent of mobile phone owners have received a scam message or a text from unknown senders asking for money; that share rises to 30 percent in Latin America and the Caribbean. While only a small share actually sent the money, research points to growing risks as fraudsters embrace generative artificial intelligence to create more convincing scams. In addition, about 10 percent of mobile phone owners have been harassed via phone messages or online platforms.  

Addressing the barriers to digital inclusion, including cost, usability, and safety, will require broad collaboration among regulators, device manufacturers, mobile network providers, and advocates. Together, they must work to holistically tackle supply-side challenges while also supporting the educational and behavioral changes needed to promote safe and effective digital access and use.

Source : World Bank