This post is written by Jesse Fripp, SBI Vice President.
In October 2012, at a gala event in New York City, the Better Than Cash Alliance was officially launched. With a stated objective to “make the transition from cash to digital payments to achieve the shared goals of empowering people and growing emerging economies,” BTCA represents an important step forward in developing a unified industry voice for the effective deployment of new disruptive technologies. A major emphasis of the initiative is on expanding the universe of government and donor to person cash transfer programs (government to person, or G2P) as a means to enhance efficiencies, increase transparency, and ensure security and minimization of “leakage” through the use of new delivery channel technologies. While the emphasis of the BTCA’s efforts are on policy-makers and the macroeconomic advantages of a “cash lite” society, a big question still remains: is cash lite really “better than cash” for consumers?
In “The Journey Toward Cash Lite” a white paper developed by Bankable Frontier Associates for BTCA, the authors helpfully break down both the opportunity and challenge of achieving a cash lite economy for multiple groups of economic actors – government, donors, businesses, and individuals. However, there are two key areas of the conversation that merit more focused consideration – namely, the assumption that increased use of e-payments equates to financial sector “deepening” and the pivotal place assigned to the issue of “trust” as the major barrier to consumer uptake at scale. Continue reading