Digital technologies have transformed the global economy, with India, China and the African continent emerging as frontrunners in innovation in the digital payments space. Much of this success is attributed to their cash-heavy economies that have limited banking penetration and rapid digital adoption — a unique blend that has created an environment for such fintech innovations to succeed.
During an official side event of South Africa’s Think 20 hosted by the Centre for International Governance Innovation (CIGI), experts highlighted that there are 2.1 billion registered mobile money accounts worldwide– over half are held by people in Sub-Saharan Africa. However, despite rapid adoption, disparities exist. Affordability, financial literacy, access to digital tools, gender gaps, transparency, and trust and security issues create a digital divide and inhibit true financial inclusion in these regions.
“The geopolitics of digital payments is no longer a niche or technical issue; it now sits clearly at the heart of debates around sovereignty, power, and inclusion,” said Yash Kalash, senior fellow at CIGI. “It is crucial to promote cooperation at a time of growing geopolitical rivalry and expand financial access to include those who have been historically underbanked and underserved.”
Recommendations from panelists, including diplomats, industry leaders, academics and civil society stakeholders from around the world, to strengthen the digital payments ecosystem include mandatory coupling of innovation and stability to ensure responsible testing, cooperative regulation to improve cross-border payments, and increased alignment with G20 goals and UN Sustainable Development Goals to ensure inclusion is built into the design of any digital finance system.
“We need to support the underserved populations in using mobile money services in many ways, including offering relevant financial literacy education,” remarked Nancy Kiarie, senior consultant of Inclusive Finance, Livelihoods and Agriculture at BFA Global. “Enhanced literacy will help to protect digital payment users from fraud and build trust in platforms that help to better manage finances.”
Other key themes of the two-day conference included geopolitics of alternative payment systems, tokenization and cross-border payments, and digital governance and global cooperation.
