Payment System Design and the Financial Inclusion Gender Gap

Despite the reduction of financial inclusion barriers overall, why do so many women remain outside the formal financial system? What barriers exclude them in greater numbers than men? Is it culture? Institutions? Or a failure on the part of financial providers to design products that interest them? A good deal of research and product market experimentation has tried to address this dilemma—with only mixed results.

This paper explores this phenomenon from a different angle. It asks if a better digital payment system design can create the conditions for more women to use digital financial tools. At first blush, this question may seem out of place. However, research indicates that better payment system design can create a financial system that is more open and accessible and, by doing so, creates the conditions for more women to use the system.