Visa has partnered with the GSMA Mobile for Development Foundation in an effort to promote financial inclusion, aiming to assist 20 million individuals in low- and middle-income countries across Africa, Asia, and Latin America. The plan, titled the Digital Finance for All (DFA) Initiative, targets various underserved groups, including women, small-holder farmers, and owners of nano, micro, and small enterprises.
The DFA plans to deliver enhanced financial literacy, develop research revolving around financial inclusion, and support the transition of small-holder farmers and small enterprises to digital financial platforms in order to promote their growth and prosperity.
Despite the 66% increase in digital payments usage among adults in low- and middle-income countries since 2014, several groups including women, small-holder farmers, small businesses and displaced individuals still face barriers when accessing the digital economy.
It is reported that women in low- and middle-income nations are 20% less likely to possess a formal financial account as compared to men. According to Visa, a large percentage of the world’s food is produced by small-holder farmers, but most of them have limited or no access to official financial services.
There’s an emerging trend of financial inclusion due to the significant digital shift, especially in emerging markets. It’s observed that areas like Latin America provide a vast opportunity for financial inclusion for smaller enterprises. For instance, PayU Global Payments CEO, Mario Shiliashki, noted that more than 60% of the 5 million small businesses in Colombia have little or inadequate access to financial services.
Additionally, modern banking services and a broader offering of these services attract numerous companies even in the US. PYMNTS Intelligence and NCR conducted a joint study and discovered that 75% of small- and medium-sized businesses suffering financial stress are predisposed to using a digital-only bank as their primary financial institution.
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