A Digital Money Grid for Modern Citizenship: Latin American Scenarios, 2015-25

Abstract

We explore five different transition paths to the realization of an inclusive, affordable, real-time money grid that connects all citizens. The five paths represent different ways to deal with the business model challenges of defeating the tyranny of scale and the construction of fuller customer propositions. They differ fundamentally in terms of: (i) the extent to which progress in the vision toward digital financial services is triggered by stimulating new sources of demand or sustainably structuring the supply side; and (ii) the extent to which the DFS industry is dominated by a player under a closed ecosystem model or competitive under a more open platform model.

Keywords: electronic payments, financial access, financial inclusion, mobile banking, government payments