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Financial inclusion is the ability of individuals and businesses to access affordable and appropriate financial services. It is essential for economic development and poverty reduction. However, billions of people around the world remain unbanked or underbanked, meaning they do not have access to formal financial services.
Digital wallets are a type of financial technology (fintech) that can help to promote financial inclusion. Digital wallets are electronic wallets that allow users to store and transfer money using their smartphones or other mobile devices. They can be used to make payments in stores, online, and to other people.
How digital wallets promote financial inclusion
Digital wallets can promote financial inclusion in a number of ways:
Examples of how digital wallets are promoting financial inclusion
Here are a few examples of how digital wallets are being used to promote financial inclusion around the world:
Additional benefits of digital wallets
In addition to the benefits mentioned above, digital wallets can also help to:
Challenges and opportunities
Despite their potential to promote financial inclusion, digital wallets also face a number of challenges. One challenge is that not everyone has access to a smartphone or other mobile device. Another challenge is that some people may not be comfortable using digital technology.
However, there are a number of things that can be done to address these challenges. For example, governments and financial institutions can work together to provide affordable smartphones and other mobile devices to low-income families. They can also provide financial literacy education to help people learn how to use digital wallets and other financial products and services.
One of the most important ways that digital wallets promote financial inclusion is by making it easier for people to start and grow businesses. For example, digital wallets can be used to accept payments from customers, pay suppliers, and manage payroll. This can help small businesses to save time and money, and to reach a wider customer base.
Digital wallets can also help to promote financial inclusion by providing people with access to new financial products and services
Digital wallets are a powerful tool that can be used to promote financial inclusion and economic development. By providing access to financial services for people who are unbanked or underbanked, reducing the cost of financial transactions, making it easier to save money, and providing access to new financial products and services, digital wallets can help to improve the lives of millions of people around the world.
This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author.
Sireesh Patnaik Chief Product and Technology Officer (CPTO) at Pennant Technologies
02 October
Jelle Van Schaick Head of Marketing at Intergiro
01 October
Ruchi Rathor Founder at Payomatix Technologies
30 September
Fiaz Sindhu Head of Community Banking at FIS
27 September
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