The Opportunities of Digitizing Payments
This paper discusses how digitization of payments, transfers, and remittances contributes to the G20 goals of broad-based economic growth, financial inclusion, and women’s economic empowerment. It reviews the body of research that has emerged on digital payments including domestic and international remittances and suggests steps to hasten the spread of such payments. The paper states that digital remittances not only lower costs for recipients and senders, but also increase access to the banking system. It helps in increasing the privacy, transparency, speed, and security of payments. The paper covers following sections in detail:
- Analysis of the global status of financial exclusion on the basis of data and statistics;
- Benefits of digital payments for governments, recipients, and providers;
- Challenges that countries around the world face as they try to increase the use of digital remittances with a focus on both supply-side and demand-side challenges;
- Recommendations for governments, private sector, and the international developmental community on how they can facilitate the spread of digital payments within their countries and globally.