To establish factors that would democratize and widen financial access and enable equitable financial inclusion, the study looked at the ‘bottom of the pyramid’, where consumers and SMMEs primarily use cash when making or receiving payments. These entrepreneurs either do not use bank accounts, have bank accounts that are inactive, or have access to facilities such as credit and digital banking, but choose not to make use of them. As a result, many continue to be marginalised and financially excluded from the growth happening in the digital economy. The study showed signs of a movement to switch away from cash: nearly two-thirds of those surveyed (65%) claimed they are likely to start paying with something other than cash in the year ahead. By contrast, the perceived convenience of cash dropped from 51% to 34%, and there was a 9-point drop in the use of cash “out of habit”, along with fewer concerns related to the hidden costs of bank cards.

Source: Forbes May 27, 2023 01:49 UTC