Impacts of Digital Payments on Socio-Economic Factors in Emerging Markets and Developing Economies

Abstract

Digital payments are increasingly becoming popular worldwide, especially in underdeveloped and developing countries, despite the challenges these countries face regarding required infrastructure and digital literacy. Digital payments have emerged as an important tool for governments to distribute the funds for social welfare schemes to their citizens directly in their accounts with zero corruption and delays. Socio-financial inclusion of society's deprived and marginalized section is another advantage of digital payments. Having access to transaction accounts, credit, savings products, and insurance helps the poor raise their incomes and become more resilient. Paperless and cashless transactions are a huge advantage of digital payments. This chapter aims to discuss the impacts of digital payments on the socio-economic factors in emerging markets and developing economies. In addition, it highlights the solution and recommendations for policymakers.