IFC Launches $700m Initiative to Expand Digital Payments in Emerging Markets
Oluwatobi Adu 
ABUJA, Nigeria – The International Finance Corporation (IFC) has unveiled a $700 million initiative aimed at expanding digital payment services in emerging markets and reducing dependence on cash by strengthening the capacity of banks, fintechs and other financial institutions.
The programme, launched on Wednesday, will provide guarantees to help participating institutions manage credit settlement risks associated with global payment ecosystems.
According to IFC, the initiative is expected to remove financial barriers that have limited the expansion of digital payment services, leaving millions of consumers and small businesses reliant on cash transactions.
IFC Managing Director Makhtar Diop said expanding digital payments would boost financial inclusion, create jobs and help more businesses participate in the formal economy.
“Expanding digital payments in emerging markets is one of the most powerful tools to create jobs and bring people into the formal economy,” Diop said.
He noted that wider acceptance of digital payments would enable small businesses, particularly women-owned enterprises, to reach more customers, increase revenue and improve access to financial services.
IFC estimates that participating institutions could process an additional $280 billion in digital payments through the initiative.
The programme is also projected to facilitate the issuance of 360 million new payment cards and increase the number of active digital payment users by about 90 million, including 39 million women.
According to the corporation, the initiative will encourage greater competition among financial institutions while improving access to secure, affordable and efficient payment services for underserved populations.
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Korede Abdullah 
