For the first time, new evidence from 25 countries shows how governments and companies can move away from cash, as McKinsey Global Institute reveals a potential $3.7 trillion GDP boost
NEW YORK, Sept. 21, 2016 /PRNewswire/ -- A new report from the United Nations-based Better Than Cash Alliance unveils ten tangible steps governments and companies can take to leave behind a cash-dominant economy and embrace digitization of payments.
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The new report comes just as McKinsey Global Institute released projections that digital finance could lead to a $3.7 trillion GDP boost by 2025, create 95 million new jobs across all sectors, and save $110 billion annually in leakages in emerging countries.
There is a large amount of evidence supporting the benefits of transitioning from cash to digital payments, but implementation is often difficult for governments to do on their own. This is in part because successfully creating an economy where digital payments are widely available requires a collaborative approach between many players in the public and private sectors.
The Better Than Cash Alliance research studied 25 countries, including India, Nigeria, Tanzania, Ghana, Brazil, and Mexico, among others. What emerged were ten 'accelerators' or actions that regularly proved to make a strong impact in advancing the creation of economies where digital payments are widely available.
"The new McKinsey Global Institute study on digital finance for all should inspire emerging countries' leadership to move quickly on creating economies where digital payments are widely available," said Dr. Ruth Goodwin-Groen, Managing Director of the Better Than Cash Alliance. "We also released a study today that shows how governments and companies can rapidly shift away from cash. Building a digital economy can take significant work, but as the new data shows, it is completely achievable and will drive inclusive growth, helping people lift themselves out of poverty."
This report also highlights the ever increasing importance of transitioning to digital payments. The data compiled in the report provides evidence of the benefits that digital payments bring, including:
The analysis of the evidence has led to identifying 10 actions on how other countries can accelerate their initiatives to save money, raise tax revenue, and increase opportunities for their citizens to lead better lives.
The 10 accelerators are:
Understanding these accelerators will help governments develop tailored approaches to best apply this knowledge in their appropriate markets. The report is accompanied with a toolkit to specifically help policymakers and important stakeholders to develop such programs.
The Better Than Cash Alliance is a global partnership of governments, companies, and international organizations that accelerate the transition from cash to digital payments in order to reduce poverty and drive inclusive growth. The United Nations Capital Development Fund serves as the secretariat.
To learn more, visit www.betterthancash.org, follow @BetterThan_Cash.
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