COVID-19: Boon and Bane for Digital Payments and Financial Inclusion
With an estimated worth of more than $127 billion, fintech is one of the fastest-growing emerging sectors globally, employing thousands of people and generating new sources of revenue for economies worldwide. In 2020, the importance of fintech has been compounded by the role digital payments can play in curtailing the spread of COVID-19.
This brief compares the approaches taken by authorities in different countries, examining the different drivers for supporting the fintech industry during the pandemic.
- Authorities around the world have moved to encourage the use of digital payments in response to COVID-19.
- Some of these measures facilitate the use of digital payments during lockdown, while others provide longer-term support for fintech players and financial innovation more broadly.
- For emerging market and developing economies, the measures respond to the unexpected opportunity to further promote financial inclusion objectives through the use of technology.
- To increase their effect, these moves should include measures to combat financial crime and protect consumers.