The Subgroup Co-Chairs are: Australia and Mexico
The G20 recognizes that inclusive payment ecosystems are crucial components of greater financial inclusion. Making a payment is one of the most basic financial transactions in any economy. It is crucial that access to payment systems are provided in such a way that usage of these systems are beneficial to all role players and lead to sustainable financial inclusion.
Remittances contributed US$404 billion to the financial resources of developing countries in 2013, according to World Bank data, and are therefore an important element in payment services. When part of an inclusive payment ecosystem, and covered by appropriate consumer protection, remittances can act as an important on-ramp to further financial inclusion and contribute to driving financial sector deepening and economic development.
Given the importance of financial inclusion and remittances, the GPFI decided at its Hobart meeting in May 2014 to establish a specific Subgroup to focus on and advance the use of payments, including remittances, in sustainably advancing global financial inclusion.
Another reason for creating this Subgroup was to work toward the achievement of G20 commitments on remittances, electronic payments and mobile technology. In 2013, the GPFI was asked by the Development Working Group to lead the G20’s work on international remittances, including the G20 commitment to reduce global average remittance costs. The G20’s St. Petersburg Development Outlook also calls for the GPFI to explore “targeted actions to ... harness emerging mechanisms such as electronic payments and mobile technology that can significantly improve access ... and consider in 2014 innovative results-based mechanisms to further reduce the cost of transferring remittances to developing countries.”
The overall goal of the Subgroup is to advance utilization of payment systems, including remittances, in the pursuit of increased and sustainable financial inclusion. The Subgroup will focus on emerging technologies and business models and will incorporate strong links to market based approaches through engagement with financial services providers. The initial work of the Subgroup will focus on cross-border remittances.
The Subgroup will collaborate closely with the other GPFI Subgroups, for example the Subgroups on Regulation and Standard-Setting Bodies and on Financial Consumer Protection and Financial Literacy, in order to foster transparency and competition, and to ensure consistency in approach on cross-cutting issues such as women’s economic empowerment. It will also develop partnerships with the private sector, particularly banks, non-bank remittance services providers, telecom companies and other actors in the payment space. The objective will be to improve cooperation in efforts to expand responsible financial inclusion through emerging technologies and appropriate business models.
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