The Trust Quotient: An ASEAN Policy Toolkit for Unlocking Responsible Digital Payments for Micro-Merchants

In Association of Southeast Asian Nations’ (ASEAN) rapidly digitalizing economies, micro-merchants play a pivotal role in expanding the digital payments ecosystem and ensuring that digital payments are delivered safely and responsibly. This policy toolkit, developed by the Better Than Cash Alliance in collaboration with the ASEAN Working Committee of Financial Inclusion (WC-FINC) and the Ministry of Finance, Government of Indonesia. It explores the trust-based barriers faced by micro-merchants in adopting and sustaining the use of DFS.

• 70 million MSMEs across ASEAN are transitioning to DFS, with 80% of financially included adults making or receiving digital payments in 2021.

• Micro-merchants encounter challenges such as data privacy concerns, unexpected charges, and complex recourse mechanisms.

This toolkit offers actionable recommendations to support the development of secure, inclusive, and user-friendly digital payment systems.

What’s Inside:

1. User experiences: Real-world experiences from micro-merchants across ASEAN that highlight the factors that build or erode trust in DFS.

2. Policy recommendations: Concrete policy suggestions aligned with the United Nations Principles for Responsible Digital Payments, including safeguarding client data, ensuring funds are protected and accessible, and making recourse clear and responsive.

3. Gender-focused insights: Analysis of gender-based barriers and how women micro-merchants can be better supported in the digital economy.

Overview of Policy Recommendations