Financial inclusion diagnostics conducted in SADC by FinMark Trust and its partners have shown that the lack of functioning digital payment eco-systems are one of the critical barriers to unlocking the potential of financial inclusion to drive welfare and economic development.
The use of cash for payments is expensive, risky and inefficient for providers and the broader economy and limits the benefits the formal financial sector can provide for consumers. A transition to digital payment eco-systems can address these concerns, however driving greater use of digital payment instruments has proven very challenging and as a result over 90% of consumers in SADC still make payments in cash.
Key questions FinMark Trust would like to examine through this study include:
- What are the most common payment needs?
- Which payment instruments do consumers use for these needs and why (cash, card, mobile money, etc)?
- Why do consumers open bank and/or mobile accounts, and then not use them?
- What are the barriers that users associate with different payment instruments?
- What are the drivers of usage of different payment instruments?