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Digital payment systems in emerging economies: Lessons from Kenya, India, Brazil, and Peru

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  • Aurazo, Jose
  • Gasmi, Farid

Abstract

Digitization of retail payments has facilitated the promotion of financial inclusion recognized to stimulate growth, alleviate poverty, and address gender disparities in the financial sector. This paper closely examines four prominent payment solutions in the developing world, which are M-Pesa in Kenya, UPI in India, Pix in Brazil, and Yape in Peru. We employ a descriptive approach to identify the main factors that have contributed to the success of these digital payment systems, focusing on the role played by: i) private digital platforms developers and providers; ii) regulators and central banks and iii) the degree of the payment system interoperability. Although, to some extent, these varied experiences suggest that there is no one-size-fits-all solution, they highlight the necessity of active public-private sector cooperation and placing the end user at the center of such initiatives.

Suggested Citation

  • Aurazo, Jose & Gasmi, Farid, 2024. "Digital payment systems in emerging economies: Lessons from Kenya, India, Brazil, and Peru," TSE Working Papers 24-1572, Toulouse School of Economics (TSE).
    • Handle: RePEc:tse:wpaper:129719
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    References listed on IDEAS

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    More about this item

    Keywords

    Digital payments; Financial inclusion; Interoperability; Regulation.;
    All these keywords.

    JEL classification:

    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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