28 February 2017
Visit EBAday.com

Digital payments crucial to economic growth - World Bank report

28 August 2014  |  14339 views  |  0 Africa

Governments should step up efforts to boost the use of digital payments in developing countries to increase financial inclusion, empower women and spur economic growth, according to a World Bank report.

More than 2.5 billion adults around the world, and 59% of those in developing economies, do not have a formal bank account, making it harder to alleviate inequality and spur economic growth.

But with the mobile phone revolution in full swing, a new World Bank Development Research Group report, sponsored by the Better than Cash Alliance and the Bill & Melinda Gates Foundation, argues that there is growing evidence that digital payments and remittances can play a key role in bringing banking services to these people.

"Rapid development and extension of digital platforms and digital payments can provide the speed, security, transparency, and cost efficiency needed to increase financial inclusion at the scale required to achieve G20 [financial inclusion] goals," says the report.

The report will be discussed at a G20 meeting next month and calls on members of the group to push for specific measures to spur non-cash payments. Chief among these is the digitisation of government payments and receipts to create a foundation upon which the private sector can build. Governments should also look to create favourable regulatory regimes that encourage competition and to work with the private sector to build technical platforms on which services can be built.

Geoffrey Lamb, chief economic and policy advisor to co-chairs and CEO of the Bill & Melinda Gates Foundation, says: "The evidence shows that private sector firms will innovate and citizens will quickly learn to use and appreciate digital payments. But we need governments to establish the vision, the digital platforms and the regulatory assurance to pull the hundreds of millions of currently excluded people into full participation in the modern economy."

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Gates to venture back into the land of the dinosaurs at Sibos

Gates to venture back into the land of the dinosaurs at Sibos

09 April 2014  |  6419 views  |  0 comments | 11 tweets | 6 linkedin
World Bank calls for payments deregulation to boost remittance flows

World Bank calls for payments deregulation to boost remittance flows

23 November 2012  |  8869 views  |  2 comments | 17 tweets | 6 linkedin
Unbanked hungry for mobile money - study

Unbanked hungry for mobile money - study

23 October 2012  |  11396 views  |  0 comments | 16 tweets | 14 linkedin
Mobiles to bank the unbanked

Mobiles to bank the unbanked

28 June 2011  |  9247 views  |  0 comments
Gates Foundation sets up $10m fund for mobile money in Haiti

Gates Foundation sets up $10m fund for mobile money in Haiti

09 June 2010  |  7140 views  |  0 comments

Related blogs

Create a blog about this story (membership required)
Visit contisgroup.com Visit Yelloco.co.uk

Who is commenting?

A Finextra member Finextra Member Commented on: Really really really K...
A Finextra member Finextra Member Commented on: In wake of Cloudflare...
A Finextra member Finextra Member Commented on: Bank consultancy Zeb o...

Top topics

Most viewed Most shared
EBA to relax controversial PSD2 authentication rulesEBA to relax controversial PSD2 authentica...
14072 views comments | 53 tweets | 74 linkedin
BNY Mellon seeks blockchain experts for new emerging biz and tech teamBNY Mellon seeks blockchain experts for ne...
8076 views comments | 7 tweets | 4 linkedin
hands typing furiouslyBlockchain Technology
7856 views 1 | 18 tweets | 8 linkedin
Starling releases Open API, talks up marketplace modelStarling releases Open API, talks up marke...
7606 views comments | 19 tweets | 18 linkedin
Barclaycard strikes new wearable deals for contactless jewellery and watchesBarclaycard strikes new wearable deals for...
7039 views comments | 17 tweets | 15 linkedin

Featured job

Six Figure Base + Commission + Stock Options
London

Find your next job