By joining the Better than Cash Alliance, the
UPU will pursue the migration of cash to electronic payments as part of the
leading global network of governments, companies and international
organizations on digital payments.
The UPU has supported the shift from cash to
electronic payments for many years, as paper money orders become obsolete and
new technologies enable the development of a worldwide electronic postal
payment network among the world's Posts.
As a Better Than Cash Alliance member, the UPU
will further its work in this area, while benefiting from knowledge, expertise
and opportunities for collaboration with other members.
UPU Director General Bishar A. Hussein says
modern services are essential for bringing citizens into the financial fold and
lifting people out of poverty. Post offices worldwide, he says, can play an
important role in achieving this goal.
“The global network of more than 660,000 post
offices – many of which are located in rural areas – is an important channel
for formal remittance services and other financial offerings," he says.
"Moving these transactions from cash to electronic payment not only
ensures the money gets into the right hands, but it provides better protection
for consumers, makes money movements transparent and creates more opportunities
to better reach and serve the un- and under-banked," he adds.
Dr Ruth Goodwin-Groen, managing director of
the Better Than Cash Alliance, concurs. “The UPU is in a unique position to
promote and support its members in the shift from cash to electronic payments.
We applaud the work that the UPU has already undertaken to advance this
transition and the steps it is taking to bring post offices globally into the
21th century.”
Strategic direction
Some 70 Posts use the UPU’s International
Financial System software to offer digital remittance services. More than 50
Posts also offer account-based financial services, managing more than 1.6
billion savings and deposit accounts. Several hundred million people also use
the post to pay government or utility bills.
In 2013, postal financial services accounted
for almost 14.5% of global postal revenues worth almost 346 billion dollars.
As letter-post volumes decline, Posts are
increasingly diversifying their business and developing postal financial
services as part of their strategies. In several countries, such as China,
India and Italy, postal financial services generate more than 50% of the Post’s
revenues.
Through the Better Than Cash Alliance, the UPU
will further support its member countries and designated operators in their
strategic and business approach.
Partnerships key
The UPU increasingly works hand in hand with
international organizations, lending institutions and donors to make
remittances more accessible to the most disadvantaged populations. Projects
with the International Fund for Agricultural Development (IFAD), the Bill &
Melinda Gates Foundation (BMGF), the European Union and PlaNet Finance have
enabled such postal services to be developed or extended in rural areas of
Africa, Asia and Central Asia. Both IFAD and BMGF are members of the Better
Than Cash Alliance.
As a global forum for dialogue and
cooperation, the UPU also organizes regular forums that explore financial
models and how new technologies such as mobile banking can be used to further
national and global financial inclusion goals.
