Guest Contributor | Jan 17, 2023 | 0
Retailers’ transactions valued at US$34 trillion
A new study from the World Bank Group and the World Economic Forum estimates the global value of micro, small and medium retailers’ transactions. The total value of these transactions is estimated at US$34 trillion, of which US$19 trillion is paper-based transactions. Global estimates were extrapolated based on key markets including Colombia (US$145 billion), France (US$950 billion), Kenya (US$63 million), Lithuania (US$8 billion), Morocco (US$96 billion), Pakistan (US$183 billion) and Turkey (US$410 billion).
Findings from the study will help companies, government and non-profit organisations understand the barriers and incentives for people to pay electronically. Acceptance of electronic payments by micro, small and medium retailers is essential to expanding financial access. A basic transaction account for payments and deposits is an entry point to the formal financial system and acts as a gateway for people to use other relevant financial services they need to smooth their consumption and manage income shocks. The case for payment services becomes increasingly compelling as individuals gradually move to a cashless economy, where electronic payments are widely accepted for regular and frequent purchases.
Gloria Grandolini, Senior Director, Finance & Markets, World Bank Group said: “While many foundations and drivers exist for achieving financial access and inclusion, the potential impact of extending the use of digital financial services through a more widespread acceptance of electronic payments among small retailers is substantial.”
Matthew Blake World Economic Forum, Head of Banking and Capital Markets said: “Moving away from cash toward electronic payments can have substantial socio-economic benefits. Moreover, substantial business opportunities and avenues for public-private cooperation exist better serving the micro, small and medium segment.”
The study is part of an ongoing collaboration between the Promoting Global Financial Inclusion initiative, World Economic Forum and the World Bank Group. Support for the study comes from the Netherlands’ Ministry of Foreign Affairs and the Bill and Melinda Gates Foundation provided through the World Bank Group’s Financial Inclusion Support Framework (FISF) program as well as from the SME Finance Forum.