Digital Money Transactions can help Poor Economies Develop Faster

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It is hard for the folks in the city especially those in a developed nation to imagine a person not having access to proper financial services. Most of us are averse to carrying cash in our wallets. What we prefer is plastic money or credit cards. There are also options of online transfers and debit cards or digital monetary transfers. Groceries, shopping, movies, investments, bank transactions – everything can be done digitally these days without the actual need to handle any cash.

But, there are poorer countries and economies globally that do not have access to these services. About 2.5 billion people in the world have no access to financial services. These people are not only inconvenienced, cheated, but face real losses that result from cash transactions. This makes them vulnerable and often exposes them to fraud. Electronic transactions increase transparency and reduce time in transit. Thus, people can receive their dues across the world much faster and in their own hands. It is a well-known fact that corrupt officials might pocket a part of the due of the poor person before handling the cash to them. This can be avoided by means of digital transactions via mobiles or to the person’s bank account directly. One of the revolutions in the field of financial transaction is mobile money or transactions. These are especially useful in countries like Afghanistan that suffer from a lack of decent financial system and also from corruption. Mobiles are becoming increasingly common and can be utilized in many ways. Converting cash transactions to electronic money is, however, not simple. It requires a lot of coordination among the various governments and banks across the world and also advanced technological tools and knowhow to enable the safe implementation and efficacy of this mode of transaction.

These electronic money transactions are absolutely crucial for the poorest and the developing economies of the world for faster growth. But the change is not happening fast enough. It requires a lot of effort between the NGOs, governments and banks to usher this change to the remotest people. The Better than Cash Alliance is one such initiative that promotes electronic transactions by bringing collaborations among governments who have shifted to this system to those that are in the process of transitioning to one. There is assistance that is provided to enable the economy to move to the electronic transaction mode in the most effective and smooth manner.

This system is being utilized by Film Annex in Afghanistan to promote education. By giving micro credits to worthy students by making mobile payments to their cellphones, they hope to engage more students in education and motivate them towards excellence. It is a belief that nations can be helped in emerging out of poverty by helping the poorest of the poor move away from cash economy to proper financial digital transactions.

Do watch the video above to understand how Better Than Cash Alliance can help in providing expertise and inputs on moving from cash to digital payments.

To see all my videos on Afghanistan and women’s education, do see my webchannel.

It is hard for the folks in the city especially those in a developed nation to imagine a person not having access to proper financial services. Most of us are averse to carrying cash in our wallets. What we prefer is plastic money or credit cards. There are also options of online transfers and debit cards or digital monetary transfers. Groceries, shopping, movies, investments, bank transactions – everything can be done digitally these days without the actual need to handle any cash.

But, there are poorer countries and economies globally that do not have access to these services. About 2.5 billion people in the world have no access to financial services. These people are not only inconvenienced, cheated, but face real losses that result from cash transactions. This makes them vulnerable and often exposes them to fraud. Electronic transactions increase transparency and reduce time in transit. Thus, people can receive their dues across the world much faster and in their own hands. It is a well-known fact that corrupt officials might pocket a part of the due of the poor person before handling the cash to them. This can be avoided by means of digital transactions via mobiles or to the person’s bank account directly. One of the revolutions in the field of financial transaction is mobile money or transactions. These are especially useful in countries like Afghanistan that suffer from a lack of decent financial system and also from corruption. Mobiles are becoming increasingly common and can be utilized in many ways. Converting cash transactions to electronic money is, however, not simple. It requires a lot of coordination among the various governments and banks across the world and also advanced technological tools and knowhow to enable the safe implementation and efficacy of this mode of transaction.

These electronic money transactions are absolutely crucial for the poorest and the developing economies of the world for faster growth. But the change is not happening fast enough. It requires a lot of effort between the NGOs, governments and banks to usher this change to the remotest people. The Better than Cash Alliance is one such initiative that promotes electronic transactions by bringing collaborations among governments who have shifted to this system to those that are in the process of transitioning to one. There is assistance that is provided to enable the economy to move to the electronic transaction mode in the most effective and smooth manner.

This system is being utilized by Film Annex in Afghanistan to promote education. By giving micro credits to worthy students by making mobile payments to their cellphones, they hope to engage more students in education and motivate them towards excellence. It is a belief that nations can be helped in emerging out of poverty by helping the poorest of the poor move away from cash economy to proper financial digital transactions.

Do watch the video above to understand how Better Than Cash Alliance can help in providing expertise and inputs on moving from cash to digital payments.

To see all my videos on Afghanistan and women’s education, do see my webchannel.



About the author

rachna-srivastava-parmar

Rachna Parmar is a Content Developer, Blogger, Article writer, and Co-Founder and Director of Tranquil Software Solutions Pvt. Ltd. I am a passionate reader and a mother of two sons. I love reading about a variety of issues. An MBA by qualification and a professional writer and entrepreneur, I am…

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