Which countries use e-money more than bank accounts? | finder.com

Which countries use e-money more than bank accounts?

Phyllis Romero 10 April 2018 NEWS

e-money use on the rise

Electronic money has transformed the lives of people in underprivileged countries.

A recent report by the International Monetary Fund (IMF) cites that 21 African nations lead the world as countries that have more e-money accounts than bank accounts.

E-money, or electronic money, is a cashless monetary value that’s stored electronically on a device, card or server. Pre-paid cards, mobile money, electronic wallets and web-based products like PayPal are all forms of e-money. Payments made from the electronic measures are often sent to third parties.

While cryptocurrency is not classified as currency by the IMF, the rising popularity of electronic money transfers is likely encouraging news for the blockchain industry.

The nations leading with e-money accounts.

It’s not surprising that many undeveloped nations have more e-money accounts than they do traditional bank accounts. Many of these nations suffer frequent regional instability and unsettled political climates.

Among the top e-money recipients are Zimbabwe, Uganda, Tanzania and Rwanda. Many Asian countries like Bangladesh, Pakistan and Indonesia also benefit from e-money transfers.

It’s also worth noting that much of the e-money transfers that come out of the US are directed towards Mexico, where migrant workers from the US send money home in hopes of bettering the lives of their families.

While there can be hefty fees involved in transferring money internationally, comparing different services can go a long way toward saving money.

What does e-money mean to undeveloped nations?

Most of us in developed countries have access to a vast amount of financial resources, which often include bank accounts as well as electronic banking sources.

However, people in less economically developed countries have fewer cash assets which often minimize the need for bank accounts. Unfortunately, this often means it’s difficult to afford even the barest of living necessities.

Approximately 2 billion people in the world lack a bank account, but 88% of the world’s population has a mobile phone. Considering that the majority of e-money transfers occur on a mobile device, it’s easy to see the exponential benefits of electronic money transfers to many of the world’s poorest people.

Where does America fit it in?

According to Pew Research, Americans sent a staggering $138 billion to other countries in the form of electronic money transfers. Just under one-third of those recipients are relatives in Mexico, China and India, respectively.

These cash infusions bring with them greater opportunities for the poor in those nations. E-money transfers offer an unparalelled opportunity and can empower a more indigent population to better economic opportunities.

Women, in particular, are afforded better financial resources and opportunities through electronic money transfers.

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