Assessing risk in digital payments (Gates)
Resource published February 13, 2015
This report aims to provide a common language and framework to guide dialogue on risk associated with digital payments and its bearing on financial inclusion.
Since digital payments form the foundation for digital financial services, an approach to managing and regulating their risk is the first step. Significant literature exists that outlines the more common risks (such as fraud) associated with digital payments. However, little data is available that attempts to present a unified framework for risk in a way that is accessible to non-experts, but also meaningful to risk practitioners and industry participants. Such a framework can aid in the adoption of low-cost digital payments by aligning industry participants (e.g., banks and telecommunications companies), customers, and regulators on the risks associated with digital payments, and how to mitigate them.