Financial Inclusion

As payments technology and business models advance, at an ever more rapid pace, the risk of people being marginalized and left behind increases.  Those people who are not ready to live digitally – often the poorest in society – suffer increased costs in their daily lives which might be termed a poverty premium.  P20 believes that the global payments industry has a responsibility to ensure that every person has access to at least one mainstream payment method.

The march towards what some have termed the “Cashless Society” has quickened.  Cash use is declining but P20 believes that it will never be eliminated.  Some of the most vulnerable in society still rely exclusively on cash and more still do so in part.  And a majority still see cash as a safe haven during a crisis.  But the cost and risks of handling cash is high and many businesses would prefer only to accept card, digital and electronic payments.

This has led some businesses to decline cash, prompting  several governments  to respond by mandating that cash must be an acceptable form of payment by retail businesses.  P20 believes that whilst the use of cash will decline, it is incumbent on the industry together with government and regulators to develop an inclusive approach with solutions that promote inclusion and do not exacerbate exclusion. 

P20 will work with all stakeholders to identify the obstacles which prevent easy payment participation by the unbanked and underbanked.