Digital payments integration boosts the economy of developing nations

Tuesday 2 September 2014 13:45 CET | News

Integrating digital payments into the economies of developing nations addresses issues of economic growth and individual financial empowerment, according to a recent report.

A research from World Bank Development Research Group shows evidence on how digital payments offer immediate benefits for both senders and receivers in developing economies, as well as the ability of such payments to increase citizen access to affordable financial tools.

According to Dr. Leora Klapper, lead economist at the World Bank Development Research Group, the benefits of digital payments go well beyond the convenience many people in developed economies associate with the technology.

The report presents an action plan for governments to adopt, in order to realize the benefits of digital payments. Calls to action include:
• Digitize government payments and receipts, including social transfers.
• Engage actively on the regulatory agenda.
• Convene public and private sectors to create a basic technical payment platform infrastructure, across which providers can compete on product development.
• Create an enabling environment that fosters private-sector innovation.
• Recognize the role of remittance providers in offering a digital entry point to formal financial services for senders and receivers.

The report concludes that the establishment of digital payments for remittances instead of cash is of benefit for poor people in emerging markets and also contributes to financial development. This could also help address concerns about the transparency and traceability of remittances.

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Keywords: digital payments, developing nations, online payments, economy
Categories: Payments & Commerce
Countries: World
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Payments & Commerce

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