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Impacts of Digital Payments on Socio-Economic Factors in Emerging Markets and Developing Economies

Impacts of Digital Payments on Socio-Economic Factors in Emerging Markets and Developing Economies
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Author(s): Ranjan Kumar (Asian Institute of Technology, Thailand)and Maheshwor Shrestha (Asian Institute of Technology, Thailand)
Copyright: 2023
Pages: 25
Source title: Impact of Disruptive Technologies on the Socio-Economic Development of Emerging Countries
Source Author(s)/Editor(s): Fredrick Japhet Mtenzi (Institute for Educational Development, The Aga Khan University, Tanzania), George S. Oreku (The Open University of Tanzania, Tanzania)and Dennis M. Lupiana (Institute of Finance Management, Tanzania)
DOI: 10.4018/978-1-6684-6873-9.ch010

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Abstract

Digital payments are increasingly becoming popular worldwide, especially in underdeveloped and developing countries, despite the challenges these countries face regarding required infrastructure and digital literacy. Digital payments have emerged as an important tool for governments to distribute the funds for social welfare schemes to their citizens directly in their accounts with zero corruption and delays. Socio-financial inclusion of society's deprived and marginalized section is another advantage of digital payments. Having access to transaction accounts, credit, savings products, and insurance helps the poor raise their incomes and become more resilient. Paperless and cashless transactions are a huge advantage of digital payments. This chapter aims to discuss the impacts of digital payments on the socio-economic factors in emerging markets and developing economies. In addition, it highlights the solution and recommendations for policymakers.

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