How can payment innovation increase financial literacy?

1 Mobile apps

Mobile apps are one of the most accessible and user-friendly ways to access payment services and financial information. Many apps allow you to link your bank accounts, cards, wallets and other payment methods and provide you with real-time data on your spending, income, balances and fees. Some apps also offer features such as budgeting tools, saving goals, spending alerts, financial tips, rewards and gamification. These features can help you track your cash flow, plan your expenses, save for your needs and wants, and earn incentives for good financial behavior.

2 Digital wallets

Digital wallets are applications that store your payment information and enable you to make online and offline payments using your smartphone, tablet or wearable device. They can also store other types of information, such as loyalty cards, coupons, tickets and identity documents. Digital wallets can enhance your financial literacy by simplifying your payment experience, reducing your reliance on cash and cards, and giving you more control over your payment options and preferences. Some digital wallets also allow you to send and receive money from friends and family, exchange currencies, buy and sell cryptocurrencies, and access financial education resources.

3 Biometric payments

Biometric payments are payments that use your unique physical or behavioral characteristics, such as your fingerprint, face, voice or iris, to authenticate and authorize transactions. They can offer you a higher level of security, convenience and personalization than traditional payment methods. Biometric payments can also improve your financial literacy by making you more aware of your payment activity, reducing the risk of fraud and identity theft, and enabling you to access customized financial services and offers based on your biometric profile.

4 Blockchain payments

Blockchain payments are payments that use a distributed ledger technology that records and verifies transactions without the need for intermediaries, such as banks, card networks or payment processors. They can offer you lower costs, faster speeds, greater transparency and more privacy than conventional payment systems. Blockchain payments can also boost your financial literacy by exposing you to new and emerging payment models, such as peer-to-peer, cross-border and micropayments, and by introducing you to new forms of money, such as cryptocurrencies, stablecoins and tokens.