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Digital Payments

Why Digital Payments are Key to Entrepreneurs’ Success

Leora Klapper's picture
Public and private sector actors have an important role to play to encourage the use of digital payments and improve access to the formal financial system. (Photo: Dominic Chavez / World Bank)


In high-income countries, entrepreneurs routinely accept electronic payments from customers and make electronic payments to suppliers, tax authorities and others. But in developing countries, where more than a third of adults report being self-employed, digital payments are an underdeveloped business tool – one that can provide significant benefits to both entrepreneurs as well as society by bringing more people into the formal financial system. With the rapid growth of mobile phone ownership to facilitate digital payments in the developing world, shifting from cash to digital payments offers high potential payoffs for entrepreneurs worldwide. A new report shows how digital payments can benefit entrepreneurs.

Remittances Market in Latin America: Will mobile money facilitate financial inclusion?

Sonia Plaza's picture
According to the recently-released Migration and Development Brief 26, Latin America and the Caribbean region achieved the most rapid growth in remittance inflows, which rose by an estimated 4.8 percent in 2015, owing to the recovery in labor markets in the United States.

Jarring Numbers on Financial Inclusion Point to Opportunities for Digitizing Payments

Leora Klapper's picture

In updating the Findex database on financial inclusion over the 2014 calendar year, I had the pleasure of traveling with Gallup, Inc., to pilot our expanded questionnaire. We visited people’s homes and asked them to describe to us how they save, borrow, make payments, and manage their risk.
 
A man who lives in a small home in a Kolkata slum with his wife, children, and parents works as a driver, and is paid directly to a bank account that was opened for him by his employer. With great pride, he told us that every month he leaves a balance in his account, which he believes is a safe place to save for his children’s education.