It is well understood that payments are a critical facilitator for practical realization of smart city and general IoT vision. Digital payments can improve payments ecosystem across public sector departments overseeing electricity consumption, water usage, sewer cleaning, trash collection and recycling, toll & transit, parking, tourists attractions, healthcare, municipalities, prisons, etc. All of which are important public service units necessary for cities to become self-sufficient.
It has also been established in 2020, that digital payment ecosystem got a major boost due to the pandemic. According to Statista, total transaction value in the digital payments segment is projected to reach US $4,934,741 million by the end of 2020 and total transaction value is expected to show an annual growth rate (CAGR 2020-2024) of 13.4% resulting in a projected total amount of US $8,170,406 million by 2024. Further, contactless payments, a type of digital payment is very well positioned to bridge Internet of Things (IoT), and hence smart cities to Financial Services.
Dear Reader. "Digital Payments, Citizen FinTech, Government Entities Make SmartCities Possible" is a premium article. If you would like to get access to this article, please pay 3000 USD fee.
Unbanked and underbanked never found refuge at traditional banks as they never met any of their qualifying criteria. Traditional banks also didn’t seem too keen to explore innovative viable business models that would include unbanked and underbanked. Part of this could be attributed to lack of cutting edge solutions such as artificial intelligence, advanced cloud computing capabilities, which are now fairly omnipresent.
They are increasingly being used to gather and process novel insights from structured and unstructured data.
And, remainder of this negligence could be attributed to lack of desire to find specialized ingenuous solutions for this demographic but instead to conveniently write them off.
It wasn’t until Vodafone’s M-Pesa found it’s footing in Kenya, that innovators and policy makers started acknowledging mobile banking as a great enabler for financial inclusion. Through further ingenuity and exploration, innovators with tie-ups with local private enterprises and with the help of government bodies, nurtured these sparks of insights into profitable and sustainable business models. Not many have been able to cross the chasm, so to speak, but there have been significant leaps in recent years due to commercialization of cloud computing and maturing of digital banking and payments landscape.
Dear Reader. "Digital Payments, AI & Human Element Cross the Chasm to Serve Unbanked & Underbanked" is a premium article. If you would like to get access to this article, please pay 3000 USD fee.