230 million unbanked adults globally receive their private-sector wages in cash. However, cash is risky, inefficient, and disempowering. Digitizing wages is an effective way to bring large numbers individuals into the formal financial sector while also increasing the efficiency and transparency of wage payments. When wage digitization is accompanied with training that covers both the technical aspects of how to use digital accounts, and money management techniques (such as budgeting and saving) it can lead to greater financial resilience for workers. In addition, digitizing wages in industries that employ a large number of women – such as the garment sector-, has the unique potential to close the financial inclusion gender gap, and promote economic empowerment for women.
The Digital Wages resource hub aims to centralize and share the different tools that have been developed to help companies and organizations integrate wage digitization in a way that considers the needs of female workers. These resources draw on learning from wage digitization programs, however, are relevant and can be used by any digitization of payments initiative. For further information, please contact us.