Leveraging Digital Payments for the Next Wave of Financial Inclusion
2024 Theme
Small and medium enterprises (SMEs) are the backbone of economies worldwide, accounting for over two-thirds of global employment and playing a critical role in job creation and economic resilience. However, persistent financing gaps limit their potential to drive inclusive growth and recovery from economic shocks.
The G20 Global Partnership for Financial Inclusion (GPFI) MSME Action Plan provides a timely framework to address these challenges, fostering resilience and innovation among SMEs while aligning with sustainable development goals (SDGs). The Global SME Finance Forum, an official side event of the G20 South African Presidency, will present GPFI’s comprehensive roadmap to address the systemic barriers hindering SMEs’ access to finance.
G20 MSME Action Plan: Financing and Policy Enablers
Resilient Value Chains: Strengthen sustainable sourcing, fair labour practices, and circular economy models to future-proof SMEs against disruptions.
Tailored Financial Solutions: Provide customised financial tools to promote the financial health and stability of micro and small enterprises.
Scaling Success Stories: Highlight examples of SMEs achieving growth through innovative financing models and sustainable business frameworks.
Digital Innovation: Powering SME Growth and Global Competitiveness
Value Chain Integration: Highlight success stories of SMEs scaling through digital integration, such as streamlined supply chains or cross-border e-commerce platforms.
Global Reach: Equip SMEs with technology to compete internationally, from cloud based accounting systems to AI-driven market analytics.
Empowering SMEs in Sustainability, Resilience and Growth
Policy Reforms: Promoting policies that facilitate working capital, trade finance, and digital payments while supporting financial technologies that simplify SME operations.
Public-Private Partnerships: Encouraging collaboration between governments, financial institutions, and private sector stakeholders to mobilize resources, mitigate risks, and scale impactful solutions
Synopsis:
Digital payments were highlighted as a fundamental force transforming how SMEs operate and access financial services. Yet with only 35% of SME payments in Sub-Saharan Africa being digital, panelists emphasized the massive untapped potential. Traditional cash-based systems have excluded millions of small businesses from formal financial ecosystems, but digital payment innovations are enabling real-time cash flow management, instant settlements, and access to embedded financial services like micro-lending and insurance.
The panel explored how digital payment platforms are creating new pathways to financial inclusion - from mobile money services that allow street vendors to accept cashless payments to embedded finance solutions providing instant working capital based on transaction history. Discussions showcased practical innovations such as QR code payments, digital wallets, and instant settlement systems that improve cash flow predictability for SMEs. Speakers also shared insights on how payment data is revolutionizing credit assessment for underbanked businesses, the role of mobile money in building resilience during disruptions, and strategies to scale digital adoption among informal enterprises to drive broader financial inclusion.
Speakers:
Amira Karim, Head of Public Policy, Payments & Financial Services, Amazon
Caroline Cerruti, Lead Financial Sector Specialist, Southern Africa Region, The World Bank
Gabriel Swanepoel, Country Manager, Southern Africa, Mastercard
Moderator:
Pat Patel, Chief Executive Officer, MEA, USA, LATAM & Forums, Global Finance & Technology Network (GFTN)