Digital payments are transfers of money enabled by, or delivered through, digital technology. For example, digital payments can be made through mobile money, mobile wallets, digital bank accounts, QR codes, credit/debit cards, or online payments. Under the right conditions, digital payments offer benefits over cash: they are faster, cheaper, more convenient to use and process, more secure, can build a user's financial profile, and can be a foundation for other financial services (savings, credit, insurance, etc.).
Alongside other methods for cash-transfer programs, digital payment channels can support more rapid, transparent, cost-effective distribution of funds as long as certain factors are accounted for, including: mechanisms for enrollment, agent-level cash-out, and merchant-level digital payments (so recipients can avoid reverting to cash).
