Understanding How Consumer Risks in Digital Social Payments Can Erode Their Financial Inclusion Potential
Digital Social Payments (DSPs) offer a variety of potential benefits over traditional cash, voucher, or in-kind methods. Proponents most often cite increased efficiency, reduced leakage, and faster, more convenient and more secure payments to recip...
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| Format: | Brief |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2016
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2016/06/26430235/understanding-consumer-risks-digital-social-payments-can-erode-financial-inclusion-potential http://hdl.handle.net/10986/24568 |
| Summary: | Digital Social Payments (DSPs) offer a
variety of potential benefits over traditional cash,
voucher, or in-kind methods. Proponents most often cite
increased efficiency, reduced leakage, and faster, more
convenient and more secure payments to recipients. When
linked to bank accounts or mobile wallets that offer
store-of-value opportunities or access to additional
financial services, DSPs to the bottom of the pyramid could
pave a way to fuller financial inclusion. However, evidence
shows that the financial inclusion benefits of DSPs have
thus far been limited: most recipients withdraw 100 percent
of their payment at once and by and large do not use the
account again until the next transfer takes place, let alone
take advantage of additional financial services that may be
available to them. This lackluster use has led some to
question the promise of DSPs as a financial inclusion gateway. |
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