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The Ripple Effect: How Digital Payment Infrastructure Amplifies Women’s Empowerment
Posted on August 24, 2023 by Editor
In today’s digital age, ‘infrastructure’ extends beyond roads and bridges—it encapsulates the digital highways that connect us in cyberspace. Simply put, it is the backbone of our online world, ensuring that data flows smoothly and systems communicate seamlessly. One segment of this infrastructure is finance—a tool that has transformed how we manage, transfer, and save our money. Recognising its transformative potential, the Indian Govt. has launched several initiatives. From the Pradhan Mantri Jan-Dhan Yojana (PMJDY) aimed at universal banking to the India Stack promoting secure and inclusive payments, the government is striving to make digital finance universally accessible, with a particular focus on women.
Setting the Stage
A survey by YouGov indicates that in urban India about two-thirds of women engage with digital modes of payment, with convenience standing as the leading reason. Interestingly, cashback, promotional offers, and the ability to keep a record of payments are also cited as motivators. However, the report also suggests that despite these numbers, achieving gender parity in digital financial accessibility remains a challenge. The constraints faced by women are twofold: limited access to financial services and limited access to digital technology, both of which have traditionally been male-dominated.
The Influence of Digital Payments: Role of UPI
The Unified Payments Interface (UPI), a real-time digital payment system, has transformed the way we make transactions. As per a World Economic Forum report, In 2021, India led the world with 48.6 billion real-time payment transactions, leading the chart and saving the economy approximately $67 billion since its inception in 2016. Not only has UPI enabled the easy transfer of money from one bank account to another, it has also linked QR codes, phone numbers, and bank details, making payments more user-friendly. “A large number of transactions via UPI demonstrate that this indigenously designed payment system is very secure,” said Prime Minister Shri Narendra Modi.
The seamless integration of UPI with popular applications like Paytm, GooglePay, and PhonePe, coupled with easy refunds on failed transactions, has fuelled the growth of digital payment transactions. The spike in UPI usage during the COVID-19 pandemic further attests to its popularity.
The Growth of UPI and its Impact on Women’s Financial Independence
UPI’s rise has been striking, with transactions in May 2023 hitting 9.41 billion—a 58% increase from the previous year, as per YouGov’s survey. However, achieving gender parity in digital payments is still challenging. ” Springer Link’s study points out that one out of every five Indian women doesn’t have a bank account. Efforts are in place to boost these numbers, but challenges persist in regular account activity and gaining access to savings and loans. Even with hurdles, embracing digital finance can drive us closer to goals like gender equality and job growth.
Policies and Initiatives Propelling Digital Financial Inclusion
Several programs have been launched to boost women’s access to digital financial tools. A notable initiative is the ‘India Stack’, a digital toolbox – featuring a unique digital ID card and easy ways to make online payments. This toolbox is transforming how women in India manage their money, helping the economy grow. Another key player in this change is the trio of Jan Dhan, Aadhaar, and Mobile – known as the JAM Trinity. Moreover, the PMJDY—launched in 2014—aims to give every household without a bank account their own access. It’s one of the biggest efforts worldwide to increase banking use.
Empowering Indian Women
A study by the Observer Forum Foundation suggests that access to digital payment infrastructure has offered a lifeline to women, unlocking income generation opportunities, fostering asset accumulation, and enabling participation in economic activities. As women gain control over their finances, they are able to weather shocks, such as those brought on by the pandemic, making these resources critical for improving resilience among India’s marginalised populations.
Anticipated Developments and Remaining Challenges
Future developments in infrastructure could amplify women’s empowerment in India. The United Nations has developed a roadmap for their economic empowerment, identifying advocacy and programmatic priorities for strengthening the rights of informal sector workers in India. UNDP suggests that the rise of the gig economy is another exciting development. The adoption of new technologies could create better opportunities for women, provided adequate reskilling programs are available. Increased adoption of digital technology and acceptance of virtual work in sales and distribution could pave the way for women in fields dominated by app-based interactions and phone calls.
Nonetheless, challenges and roadblocks remain to be tackled to realise their full potential. These include limited physical infrastructure, low ATM penetration, limited digital adoption, poor connectivity, cybersecurity threats, and low literacy rates. These factors can hinder the fortification of India’s payment infrastructure and limit women’s access to and use of digital payment systems. Overcoming structural and technological challenges such as cyber-frauds, transaction costs, communication infrastructure, awareness, and adoption requires collective intervention by the industry.
The Ripple Effect
The power of women’s upliftment through digital payment access is clear in places like rural India, where women have traditionally been sidelined. In a nation marked by gender disparities and divided by urban-rural divides, these initiatives have ushered in winds of change. The contrast between bustling cities and remote villages highlights these disparities. Financial imbalances, combined with gender and regional disparities, still hinder India’s potential. The journey to bridge this gap is long, but every step towards an inclusive and equal digital finance ecosystem moves us closer to a brighter, unified future for all women.
The Ripple Effect: How Digital Payment Infrastructure Amplifies Women’s Empowerment
Posted on August 24, 2023 by Editor
In today’s digital age, ‘infrastructure’ extends beyond roads and bridges—it encapsulates the digital highways that connect us in cyberspace. Simply put, it is the backbone of our online world, ensuring that data flows smoothly and systems communicate seamlessly. One segment of this infrastructure is finance—a tool that has transformed how we manage, transfer, and save our money. Recognising its transformative potential, the Indian Govt. has launched several initiatives. From the Pradhan Mantri Jan-Dhan Yojana (PMJDY) aimed at universal banking to the India Stack promoting secure and inclusive payments, the government is striving to make digital finance universally accessible, with a particular focus on women.
Setting the Stage
A survey by YouGov indicates that in urban India about two-thirds of women engage with digital modes of payment, with convenience standing as the leading reason. Interestingly, cashback, promotional offers, and the ability to keep a record of payments are also cited as motivators. However, the report also suggests that despite these numbers, achieving gender parity in digital financial accessibility remains a challenge. The constraints faced by women are twofold: limited access to financial services and limited access to digital technology, both of which have traditionally been male-dominated.
The Influence of Digital Payments: Role of UPI
The Unified Payments Interface (UPI), a real-time digital payment system, has transformed the way we make transactions. As per a World Economic Forum report, In 2021, India led the world with 48.6 billion real-time payment transactions, leading the chart and saving the economy approximately $67 billion since its inception in 2016. Not only has UPI enabled the easy transfer of money from one bank account to another, it has also linked QR codes, phone numbers, and bank details, making payments more user-friendly. “A large number of transactions via UPI demonstrate that this indigenously designed payment system is very secure,” said Prime Minister Shri Narendra Modi.
The seamless integration of UPI with popular applications like Paytm, GooglePay, and PhonePe, coupled with easy refunds on failed transactions, has fuelled the growth of digital payment transactions. The spike in UPI usage during the COVID-19 pandemic further attests to its popularity.
The Growth of UPI and its Impact on Women’s Financial Independence
UPI’s rise has been striking, with transactions in May 2023 hitting 9.41 billion—a 58% increase from the previous year, as per YouGov’s survey. However, achieving gender parity in digital payments is still challenging. ” Springer Link’s study points out that one out of every five Indian women doesn’t have a bank account. Efforts are in place to boost these numbers, but challenges persist in regular account activity and gaining access to savings and loans. Even with hurdles, embracing digital finance can drive us closer to goals like gender equality and job growth.
Policies and Initiatives Propelling Digital Financial Inclusion
Several programs have been launched to boost women’s access to digital financial tools. A notable initiative is the ‘India Stack’, a digital toolbox – featuring a unique digital ID card and easy ways to make online payments. This toolbox is transforming how women in India manage their money, helping the economy grow. Another key player in this change is the trio of Jan Dhan, Aadhaar, and Mobile – known as the JAM Trinity. Moreover, the PMJDY—launched in 2014—aims to give every household without a bank account their own access. It’s one of the biggest efforts worldwide to increase banking use.
Empowering Indian Women
A study by the Observer Forum Foundation suggests that access to digital payment infrastructure has offered a lifeline to women, unlocking income generation opportunities, fostering asset accumulation, and enabling participation in economic activities. As women gain control over their finances, they are able to weather shocks, such as those brought on by the pandemic, making these resources critical for improving resilience among India’s marginalised populations.
Anticipated Developments and Remaining Challenges
Future developments in infrastructure could amplify women’s empowerment in India. The United Nations has developed a roadmap for their economic empowerment, identifying advocacy and programmatic priorities for strengthening the rights of informal sector workers in India. UNDP suggests that the rise of the gig economy is another exciting development. The adoption of new technologies could create better opportunities for women, provided adequate reskilling programs are available. Increased adoption of digital technology and acceptance of virtual work in sales and distribution could pave the way for women in fields dominated by app-based interactions and phone calls.
Nonetheless, challenges and roadblocks remain to be tackled to realise their full potential. These include limited physical infrastructure, low ATM penetration, limited digital adoption, poor connectivity, cybersecurity threats, and low literacy rates. These factors can hinder the fortification of India’s payment infrastructure and limit women’s access to and use of digital payment systems. Overcoming structural and technological challenges such as cyber-frauds, transaction costs, communication infrastructure, awareness, and adoption requires collective intervention by the industry.
The Ripple Effect
The power of women’s upliftment through digital payment access is clear in places like rural India, where women have traditionally been sidelined. In a nation marked by gender disparities and divided by urban-rural divides, these initiatives have ushered in winds of change. The contrast between bustling cities and remote villages highlights these disparities. Financial imbalances, combined with gender and regional disparities, still hinder India’s potential. The journey to bridge this gap is long, but every step towards an inclusive and equal digital finance ecosystem moves us closer to a brighter, unified future for all women.