This blog is part of a NetHub series that looks at technology trends that will help to shape a bright global future. Read more on the World Economic Forum Annual Meeting and NetHope here.
In the developing world, billions of dollars in cash is exchanged every month between governments, companies and donor agencies for various reasons: salary, social welfare payments, cash-for-work programs, emergency relief and money transfers. The majority of these payments are given in physical cash, but advancements in technology and network capabilities have introduced safer, speedier, more reliable and transparent ways for exchanging those funds.
Replacing physical cash payments with electronic payments provides improvements for governments and communities alike. For instance, when the Government of Afghanistan started paying government employees and police officers through mobile phones via a grant from USAID, it immediately cut out so much graft that some employees actually thought they were getting at 30 percent raise. Mobile money also makes it easier to tax the transactions and root out ‘ghost’ payrolls.