Cash Transfer Payment Mechanisms
As a part of “Evidence at Your Fingertips Series”, this note aims to summarize the impacts of cash transfers based on payment mechanisms which have diversified greatly in recent years. The review is largely based on the impact evaluation published in the past decade, finding that the payment mechanism—whether physical (in-person) or digital— does not have notably different impacts on how recipients use cash or on key outcome indicators related to consumption, gender, and financial inclusion. That said, digital transfers may be more cost-effective for both implementers and beneficiary households than physical cash payments, expand customer coverage for participating mobile network operators, and provide avenues to increase financial inclusion for the poor. While digital payments can offer opportunities, it is essential to invest in appropriate infrastructure and mechanisms to reach digitally excluded populations.
| Main Authors: | , |
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| Format: | Policy Note biblioteca |
| Language: | English en_US |
| Published: |
Washington, DC: World Bank
2024-06-14
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| Subjects: | CASH TRANSFER, PAYMENT MECHANISM, DIGITAL TRANSFER, ECOSYSTEM FACTOR, |
| Online Access: | http://documents.worldbank.org/curated/en/099061324164535535/P176585149bfc00b2199421049786684bc5 https://hdl.handle.net/10986/41716 |
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| Summary: | As a part of “Evidence at Your Fingertips Series”, this note aims to summarize the impacts of cash transfers based on payment mechanisms which have diversified greatly in recent years. The review is largely based on the impact evaluation published in the past decade, finding that the payment mechanism—whether physical (in-person) or digital— does not have notably different impacts on how recipients use cash or on key outcome indicators related to consumption, gender, and financial inclusion. That said, digital transfers may be more cost-effective for both implementers and beneficiary households than physical cash payments, expand customer coverage for participating mobile network operators, and provide avenues to increase financial inclusion for the poor. While digital payments can offer opportunities, it is essential to invest in appropriate infrastructure and mechanisms to reach digitally excluded populations. |
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