Mobile Money Is Not The Future – It is Now!
In a white paper published earlier this year, Telepin in no uncertain terms stated that when poor households have access to the digital economy through mobile money technology, they have the key to ending poverty.
The white paper has some interesting facts, which are highly relatable to the circumstances in Papua New Guinea and we’d like to point out some of those below:
- 1.7 billion people around the world don’t have a bank account today
- The unbanked can subsist in the cash economy for a time, poverty circles them more closely than any other population
- It is expensive to be poor.
- For people living under $2 billion per day, saving money is difficult and credit is available at very high interest rates.
- Women are more likely to face financial exclusion – why? Identification issues, married women face greater restriction on traveling limiting opportunity to visit bank, credit worthiness – they spend in small amounts which do not contribute to formal transactions worthy of recording
- Solution – provide access to broad range of financial tools and services that meets the needs of the poor, they can control their financial lives
- Mobile money is not the future – it is NOW
- Mobile money offers greater financial stability
- Mobile money offers financing for entrepreneurs
- Mobile money cuts down travel time, physical and emotional strain of worrying about access to financial services
- Mobile can offer Government opportunity to increase tax revenue by regulating the unregulated cash economy
- Government can reduce financial crime through regulation
- Mobile money enhances financial inclusion and financial inclusion has the potential to help Papua New Guinea’s poorest households
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