Summary

Understanding Financial Inclusion: Why It Matters

5 mins

January 10, 2023

Pyypl Team

Imagine this: you don’t have a current account, a credit card, life, health, or property insurance, or a secure location to keep your funds. How would you manage your money?

Globally, about 2 billion people require financial inclusion in order to fully utilise their resources and participate in their local economies. Having access to essential financial services can help them increase their income, build assets, and protect themselves from external shocks.

Financial inclusion aims to provide financial services to everyone, regardless of their savings or income. Its goal is to ensure that the unbanked and the underbanked are able to make the best use of their money.  

Why Financial Inclusion Matters

Financial inclusion is both a problem that must be solved as well as a chance that must be taken. There isn't a "one-size-fits-all" solution to the problems of the economically disadvantaged, but cheaper and easier access to digital financial services might make a difference.

The case is irrefutable: everyone gains from being a part of the mainstream economy. With access to more trustworthy financial services, customers will prosper financially, empowering themselves and their communities. Similarly, banks can develop and cultivate new client segments over time. As more individuals enter the financial system and start to accumulate money, the economy as a whole will prosper as well.  

The Digital Divide

Often, people who are not able to access traditional financial services are also excluded from digital services. As the use and prevalence of cash continues to dwindle, it may be the only resource they have, further excluding them from the digital economy. Statistics reveal that the use of cash fell from 52.6% in 2019 to 20.5% in 2020 as a result of the COVID-19 pandemic.

Why does this matter?

Financial inclusion is essential for digital inclusion. People without access to digital services are frequently charged extra for basic services such as utilities and remittances. People of all ages are impacted by financial exclusion but the most vulnerable are those with low earnings.

What’s being done to create a financially exclusive society?

Now more than ever we need to help the unbanked get access to digital services. Many young fintech companies have risen to the challenge and are working on products and services that include everyone, not just those with access to traditional banking.

At Pyypl, we aim to alter the payments landscape by giving everyone access to essential financial services. The MENA region has an amazing smartphone penetration rate of 91%, which gives us the opportunity to turn mobile devices into bank accounts for our customers, helping them get digitally integrated into the economy.

We offer a 100% digital app that gives users an internationally accepted prepaid Mastercard with no requirements for paperwork. No bank account, no minimum salary, no minimum balance and no branch visit. Registration is simple and free. If you have a phone number and a valid ID, you can download the app and register within minutes.

Once the sign-up process is complete, users can top up and use Pyypl to shop online, order their physical cards to shop in stores or send money to over 40 countries with great exchange rates. No need to visit an exchange center or stand in lines.  

Interested in getting started? Download Pyypl by clicking here.

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