وفقاً لدراسة حديثة لماستركارد: الاقتصاد الذي يعطي الأولوية لرقمنة المدفوعات يمتلك فرصاً أكبر لتحقيق نمو في ناتجه المحلي الإجمالي ولتعزيز رفاهية مواطنيه
The MasterCard study revealed that the economic cost of cash transactions is high , as it is not less than 3.2% of global GDP
City, Country, May 19 , 2020 - A recent MasterCard study titled “Cash: Economic Growth through the Digitization of Payments” reveals that countries that prioritize the digitization of payments have greater opportunities to mitigate the negative impact associated with unemployment, financial exclusion, fraud, theft and the cost of cash. , and corruption.
The MasterCard study shows that the high economic cost associated with the spread of cash payment transactions represents between 3.2% and 4.5% of global GDP, which means that there is an opportunity to increase the GDP of countries through the digitization of the economy, leading to job opportunities and building more robust economic activity. Providing simplified business loans and reducing the cost of cash in circulation. The study revealed that the increased use of cards in 70 countries, representing 90% of global GDP, has contributed to an increase in consumption worth 296 billion US dollars. The study also found that a 1% increase in the use of digital payments results in an average increase in consumption of goods and services of $104 billion annually, representing a 0.04% increase in GDP in developed markets and 0.02% in developing countries.
In this context, Khaled El-Jabali, Regional Head of MasterCard in the Middle East and North Africa, said : “In light of the volatility and rapid changes we are witnessing today, which emphasize the need for better solutions to meet challenges and improve efficiency, countries around the world realize the importance of digital payments economies as an effective means to contain challenges and increase output. and achieving financial inclusion. Through continuous cooperation with governments, we recognize that expertise, ideas and advice provided in the early stages are an essential factor to support the strategic planning process.”
Collaborating with governments to advance the transition towards a digital payments economy
MasterCard supports governments across the Middle East and North Africa region to drive the transition to a digital payments economy including payroll, collection and taxes. For example, the company has been instrumental in providing a digital payroll solution in collaboration with the Egyptian government, a project that has grown to become one of the largest of its kind in the world, providing digital financial services to millions of government employees. As it works with governments to achieve digital transformation goals, Mastercard simplifies this process through a global network of dedicated partners. The company offers a range of different programmes, products and services to digitize payments in the sectors of healthcare, education, agriculture, government payments, financial inclusion and humanitarian relief.
The study also found that cash transactions still represent about 85% to 90% of total consumer transactions globally, including countries in the Middle East and North Africa region, while digital payment transactions amount to 25% in the UAE. On the other hand, Sweden confirmed the possibility of tipping the scales in favor of electronic payments and benefiting from reducing fraud, increasing e-commerce and scaling the parallel economy. Businesses and governments alike bear indirect costs due to the proliferation of cash payments, including loss of cumulative revenue, and the imposition of additional costs on security and insurance activities.
For his part, Elias Aad, Vice President of MasterCard and Head of Government Business in the Middle East and North Africa, said : “It is encouraging to see the impact of the work we do and the success of the methodology we implement. Through strategic cooperation with governments to provide recommendations and solutions needed to develop their economies based on With digital payments, we hope to help pave the way for enhanced economic growth and the social well-being of citizens. The study we conducted at MasterCard highlights the importance of these combined positive outcomes."
The first step is to involve governments in following the MasterCard Approach to Payments Design and Development (PEDD), a strategic approach that supports the efforts of governments in developing plans to adopt digital payments and oversee their implementation in order to promote inclusive economic growth. This approach consists of five steps: studying the volume of financial flows, determining the factors of the spread of cash transactions, designing a digitization strategy, setting a priority for digitization initiatives, and finally submitting a proposed implementation plan based on a public-private partnership that in turn enhances financial inclusion.
Some of the initiatives to design and develop the payment system approach that have been implemented include: digitizing vaccination records in cooperation with the Global Alliance for Vaccines and Immunization (Gavi), a digital voucher program with the World Food Program, introducing a digital market for farmers through the MasterCard Farmer Network (MFN), and introducing a digital school system Through the Kuppa Initiative in Africa, which enables parents, schools and governments to make and track school payments digitally. These initiatives lay the foundation for smart cities in the future, as they transform the citizen’s journey into a digital experience within the payments value chain, and provide them with a smooth, simple and secure experience.
The study also examined the ability of digital transformation of payments through financial technology to create many opportunities such as increasing job opportunities, financial inclusion, gender balance, diversifying industries, improving tax collection procedures, enhancing the efficiency of government expenditures and increasing foreign investment through financial transparency.
Incorporating people who do not have accounts or banking services into the financial system contributes significantly to improving their quality of life, enhancing ease of doing business and increasing financial literacy. For its part, MasterCard announced in 2015 its commitment to contribute to the inclusion of 500 million people who are excluded from financial services by 2020, bringing another step closer to building a digital world.
