Abstract
The global digital economy has undergone significant transformations especially with the rise of mobile commerce in emerging markets like South Africa. Digital transactions have become more accessible through the increasing adoption of smartphones and numerous mobile payment solutions. However, this transition has come with challenges, especially in developing economies like South Africa. Therefore, digital literacy remains a crucial factor in consumer participation in the digital economy. The digital divide in South Africa in addition to cyber security concerns and limited digital skills hamper consumers from engaging with online platforms confidently. These challenges need to be addressed to achieve inclusive economic growth. This study explores the impact of digital literacy on mobile commerce adoption in South Africa and introduces a Digital Literacy Checklist for mobile commerce as a practical tool to assess and enhance consumer readiness. Embedded in Digital Inclusion Theory and Consumer Empowerment Theory, this study employs a qualitative approach by integrating interviews and a content analysis to analyze how consumers interact with digital platforms. Interviews were conducted with electronic commerce professionals to understand the digital literacy challenges and opportunities. In addition, policy documents, digital literacy training material and reports were reviewed to assess the current frameworks and strategies as well as identify gaps in consumer preparedness. Findings suggest that digital literacy enhances consumer confidence in online transactions, the ability to identify fraudulent scams and the awareness of mobile payment security features. The key barriers to mobile commerce adoption were limited digital skills, trust and security concerns and socioeconomic disparities. Findings also suggest that higher levels of digital literacy correlate with increased confidence in online shopping, mobile payments and financial transactions. This in turn leads to a more inclusive and competitive digital economy. This study contributes to the discourse on digital transformation by highlighting strategies to improve digital literacy. In turn, business innovation, economic inclusion and sustainable growth in mobile commerce's ecosystems are driven. Businesses, policy makers and educators can make use of these insights to create targeted interventions that are able to empower consumers to enhance resilience in the digital economy.