The Benefits of Digital Payments
Digitalization is the next wave that’s going to shape the financial transaction landscape, were more emphasis is put on to get to the non-bankable population and the segment of population that don’t have any access to general banking. Around the world 1.6 billion people are still unable to participate in any formal financial system and the majority of them are the female population. This makes it extremely difficult for poor people to save for the future, provide for their family’s health and children’s education, or invest in a business. The harsh reality is that the only way to make or receive payments for many poor people across the world is by using paper money in the informal sector - which is a barrier to the use of formal financial services. Cash-based transactions are also typically unsafe, expensive, inconvenient, inefficient, and lack transparency for governments, companies, and citizens alike. When digital payments—whether on mobile phones, cards, or online —become available to everyone, everyone in the economy can benefit from the outcomes! These include:
1) Transparency: More transparent by improved accountability in tracking financials, which will lead to reduced corruption numbers.
2) Security: With improved technology, fintech’s can provide highly secured channel of transaction.
3) Savings: Digitalization saves enormous amounts of money compared to the brick and mortar banks, and can be used to improve the transaction experience of customers.
4) Women Empowerment: female population consist a major portion in the unbanked group and by digitalization they can also be added and which in turn will lead to economic growth and improvement in their family lives.
5) Financial inclusion by advancing access to a range of financial services, including savings accounts and insurance products.