Unlocking Socio-Economic Opportunities for Rural Women Through Mobile Money
With the global push towards a digital payments ecosystem, an increasing adoption of mobile money solutions can be seen. At the end of 2017, there were 690 million registered mobile money accounts around the world, which was a 25% increase from 2016. One key segment that this shift is empowering is that of unbanked women from emerging economies who now have greater access to socio-economic opportunities. 36% of the users of mobile money solutions are women, as shown by the Global Adoption Survey.
Women’s Active Role in Family Finance Despite Being Unbanked
Despite earning proportionally less than men, women have been active managers of household finance. For instance, in Pakistan, 39% of the women who earn no income at all still take charge of household expenses. GSMA’s case study of Ani, a woman living in an Indonesian village, demonstrates similar realities. Ani does not have a job, and her husband’s income is the only source for the household. Yet, she is responsible for over 64% of the outflow of money. A significant number of women in the emerging economies around the world have identical stories to tell.
Around 40% of the world’s population still lacks bank accounts, as estimated by the World Economic Forum. Of these 2 billion people, a disproportionate number is that of women. With limited access to formal financial institutions, currently use a variety of informal tools such as savings clubs, cash savings, credits at local stores, to manage their money.
How Mobile Money Solutions Are Transforming Lives
With a secure and easy-to-use way of making transactions, mobile money solutions can help meet womens’ need of a dexterous financial tool. Their speed, efficiency, and affordability have proven them to be effective tools of financial inclusion. A growing usage of mobile wallets in unconventional ways is being seen the world over. One such case is of Northern Uganda’s Bidi Bidi, one of the world’s largest refugee settlement. In Bidi Bidi, mobile wallets are being used to extend humanitarian aid to displaced refugees. Other examples are that of Kenya and Tanzania, where an estimated 80% senders of remittance prefer mobile money transfer over other traditional means of transaction.
The strengths of digital payments can render positive results when channeled toward women empowerment as well. Safaricom’s mobile wallet m-Pesa is helping women in multiple African countries make online transactions for everything from their daily needs to running small businesses.
Digital finance is helping unbanked women open their account within minutes, make quick deposits and withdrawals. With the simplified design of the mobile applications, even the non-tech savvy women can use them. Having more control of their finances is helping more and more women transform their lives for the better.
Aided with digital finance, women are also contributing towards the empowerment of their communities. A case in point is Liberia, a small West African country, where local women who have become well versed in mobile banking are becoming ‘mobile money agents’. These mobile money agents teach other women how to use mobile-based money solutions, and help them make utility payments online. This in turn helps build women’s confidence and trust in using mobile payments. It also plays an instrumental role in empowering women with an entrepreneurial and independent spirit.
However, a number of barriers currently exist that prevent women from using mobile money solutions. These challenges exist loosely on three tangents: lack of access to resources such as mobile phones, lack of literacy and lack of confidence. With an improved understanding of these challenges, digital payment providers can cater to women’s financial needs more effectively.
Key Attributes That Women Need in Financial Tools
Women have predominantly voiced the need for four key attributes in financial tools:
- Convenience
- Reliability
- Security
- Privacy
OBOPAY: Helping Partners Deliver Mobile Money Solutions Around the Globe
OBOPAY’s platform, built with inherent end-to-end mobile and micropayments functionality is helping partners around the world meet users digital finance needs. Even users without access to banks or credit/debit cards can use this platform with the help of a network of independent agents who facilitate transactions for a commission. Once the prepaid wallet has been loaded with money, users can transact with each other or use the money for purchases at various outlets. In India, the platform is also enabled to connect to ATM machines, helping users withdraw cash if needed.
With capabilities like these, OBOPAY is building networks in countries and segments that have been largely unserved or underserved so far. It is working with partners that share its vision of mobile payments to cater to the unbanked in multiple countries. Functional in 4 out of top 5 emerging economies, it currently enables 11% of the mobile money transactions in the world every day.
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