The World Trade Organization (WTO) is urging developing nations to integrate digital payments into their economies, which are keys to boosting e-commerce important for growth and development.
WTO Director General Roberto Azevedo considered digital payments as entry points for financial inclusion.
“Technological advances, especially in mobile technology, have provided alternative solutions—and they have been advancing at a tremendous speed,” Azevedo said.
He noted developing countries can be at the forefront of new ideas and solutions.
Citing World Bank’s estimate that over 200 million micro, small and medium-sized enterprises (MSMEs) in emerging economies are lacking basic financial services, Azevedo said “e-commerce will not deliver its full potential if many are still financially excluded”.
He noted e-commerce has already helped to lower trade barriers for businesses and consumers.
“By reducing the costs associated with distance, e-commerce provides businesses with access to new market opportunities and global value chains. This is particularly important for small businesses, those located in rural areas, as well as land-locked and other geographically challenged countries,” Azevedo added.
For consumers, the WTO chief further said e-commerce provides access to a wider range of products and services suppliers at more competitive prices.
Azevedo added it is thus important to address many and complex challenges posed by e-commerce to ensure this works for inclusive growth and development.
“Addressing them will require dialogue and cooperation among different actors as the issues involved cut across different areas of expertise,” he said.