Join getAbstract to access the summary!

The Opportunities of Digitizing Payments

Join getAbstract to access the summary!

The Opportunities of Digitizing Payments

How Digitization of Payments, Transfers, and Remittances Contributes to the G20 Goals of Broad-Based Economic Growth, Financial Inclusion, and Women’s Economic Empowerment

World Bank,

5 min read
5 take-aways
Audio & text

What's inside?

Setting up digital payment programs in developing markets presents both opportunities and challenges.

auto-generated audio
  • 0.5×
  • 0.75×
  • 1×
  • 1.25×
  • 1.5×
  • 1.75×
1×
auto-generated audio

Editorial Rating

8

Qualities

  • Innovative

Recommendation

In the digital age, a cashless society seems on the horizon for many developed markets. But in developing countries, cash remains king. People in these nations must rely on inefficient postal systems, crooked local officials and expensive methods of transfer to get their wages or other disbursements. This study from World Bank researchers Leora Klapper and Dorothe Singer provides an enlightening look at how moving from cash to electronic payments can help disadvantaged populations in low-income countries. getAbstract recommends this timely report to anyone interested in reaching new consumers in emerging markets.

Summary

Cash is the most common form of payment for developing countries’ inhabitants, many of whom receive wages, state payments and overseas remittances in cash. Only 46% of men and 37% of women in these nations hold bank accounts, and for the poor, having an account is much less likely. Digital payment systems would reduce the costs of moving money, decrease the risk and crime inherent in handling cash, and grant greater financial privacy. For governments, electronic transfers could lessen identity fraud by recipients and bribery by state officials, raise transparency and efficiency, and lower...

About the Authors

Leora Klapper and Dorothe Singer work in the development research group at the World Bank.

Comment on this summary