The gender gap in financial inclusion is stubborn. Can better digital payment system design create the conditions for more women to use digital financial services?
This paper explores this proposition in the context of the Level One Project Principles for payment system design. The primary aim is to examine the principles for their potential impact on the financial inclusion gender gap. It finds:
- Core barriers for women:
- Limited ID access and KYC hurdles
- Lower-end device ownership and digital literacy gaps
- Cost sensitivity and time constraints
- Preference for agent-mediated and face-to-face services
- L1P principles with strongest gender impact:
- Interoperability: Enables specialized products and reduces switching costs
- Tiered KYC: Supports account access for women with limited documentation
- Transparent, low fees: Reduces exclusion from high transaction costs
- Access Points: Agents play a critical role in building trust and usage
- Low-cost user devices: Ensures systems work on basic phones
These principles can narrow the gender gap and expand digital financial inclusion.