How can financial inclusion unlock sustainable growth?
- More than 50% of consumer transactions in South Africa are conducted in cash.
- Almost a quarter of South Africans are unbanked, potentially holding R12 billion in cash outside of banks.
- Fintechs play a crucial role in enabling payment acceptance and financial inclusion for the informal sector.
The text highlights the importance of purpose-driven banking and financial inclusion, especially in tough economic conditions. It emphasizes the role of fintech solutions and regulations like PSD2 in driving innovation and enabling payment acceptance for the informal sector. The example of the Eastern Cape Tertiary Taxi Cooperative's cashless payment solution showcases the positive impact of digitization on safety, income streams, and credit access. Overall, the text promotes the idea that seamless and secure payments are crucial for economic growth and inclusion in South Africa.
