Innovation in Electronic Payment Adoption: The case of small retailers

The importance of financial inclusion to development is nowadays widely recognized in the international development community and by policy-makers in developed and developing economies. Still, an estimated 2 billion adults globally do not have access to a transaction account that can be used to receive payments and make deposits. Yet, research shows that low-income and financially excluded populations have active financial lives and need a range of financial services to take advantage of economic opportunities and manage and mitigate risks. Similarly, an estimated 200 million enterprises in developing economies are still constrained in terms of financing, even though small and medium enterprises generate the greatest number of new jobs, employ the largest number of people in aggregate and, hence, are important for job creation and economic growth. Moreover, improving access to financial services plays an important role in reducing the world’s poverty levels and increasing shared prosperity.

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