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Financial Leaders Discuss the Future of Digital Payment Services in Developing Nations

November 22, 2014         By: Michael Cheng

Representatives from leading government and private financial institutions came together for the fifth annual Responsible Finance Forum in Perth, Australia.

Supported by the United Nations Capital Development Fund (UNCDF) and the World Bank Group, the future of digital financial services in developing nations was top priority during the conference.

Online payments technology offers a wide range of solutions for consumers. In poor or developing areas, digital payment transactions are a necessity. Online payment platforms are used to pay bills, transfer money and receive monthly salaries from employers. Because of this, financial leaders in attendance expressed the need for well-establish policies and guidelines that regulate digital payment services in a safe, reliable manner.

During an interview, Dr. Leora Klapper, the lead economist at the World Bank Development Research Group said, “The benefits of digital payments go well beyond the convenience many people in developed economies associate with the technology.”

Government sectors around the world have begun to implement their own local electronic distribution programs. A study conducted by The Better Than Cash Alliance indicates that the Mexican government is currently deploying social benefits and pensions using technology-powered payment services. The new distribution plan is expected to save the government roughly €10 billion annually in transaction and service fees.

Countries in Latin America and Africa are also in the process of replacing traditional payment methods in order to provide individuals with more access to basic financial services through digital mediums.

Geoffrey Lamb, chief economic and policy advisor to the co-chairs and CEO of the Bill & Melinda Gates Foundation, said, “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.”