Financial inclusion in developing countries has recently increased due to digital acceleration. According to the World Bank’s Global Findex 2021 study, “almost two-thirds of adults in developing economies who received digital payments also used their account to store money for cash management, about 40% used their account to save, and 40% used their account to borrow”.

It is also commonly accepted that the pandemic has helped push the appetite for digital money forward. The digitisation of money has had a positive impact on faster and more efficient financial inclusion as a result.

Global e-payments initiatives

As pointed out in the Finextra/HPS whitepaper, “What Will Drive The Journey Towards Cashlessness and Digitalisation?”, demand for digital money has also been propelled and augmented by pre-Covid financial inclusion and cash reduction drives.

There have been a number of such society initiatives to encourage the adoption of electronic payments:

• Ghana’s central bank aims to grow infrastructures between banks and non-banking providers within the country through the use of harmonised QR codes. Payments can now be made from various sources by customers to merchants via one nationwide QR code
• Sauda Arabia’s central bank is aiming to reach a 70 per cent cashless society by 2030, and QR codes were likewise chosen as the technology of choice with which to achieve this
• Morocco has established the first mobile switch in Africa to build a national interoperable mobile payment programme, enabling banks, wallet providers, merchants, FMCGs and fintechs to interact seamlessly through the mobile.

In today’s world, there is a constant need for innovative solutions that improve inclusion. For example, solutions are currently being worked on to improve the payment experience of the blind and visually impaired people, helping them to benefit from the convenience of mobile means of payment in autonomy and security.

Technology for change

Central to eradicating extreme poverty and boosting economic prosperity for all are payment systems which help support financial stability and expand financial inclusion in the developing world. The mission for payment services providers, therefore, is to provide these innovative society initiatives with cutting-edge technology that enables them to bring new products to the market with ease and efficiency.

Change induced by the digitisation of money, and accelerated by the pandemic, can only increase the democratisation of access to electronic payments and the contribution to financial inclusion.

Today, HPS helps 450+ customers in over 90 countries to deliver simple, seamless and secure payments solutions. To know more about HPS solutions, and discover HPS customers’ accomplishments with PowerCARD, please contact sales@hps-worldwide.com.