Earthquake Rattles Haitian Economy, Prompts Shift to Digital Payments
Port-au-Prince, Haiti - A devastating earthquake that struck the Caribbean nation of Haiti has left a trail of destruction and displacement, prompting a shift towards digital payments to ease economic hardship.
The Aftermath: A Shift Towards Digital Payments
In the aftermath of the disaster, which has claimed thousands of lives and left millions more homeless, Haitians are turning to mobile wallets and online banking services to access essential goods and services. The country’s financial landscape, once dominated by cash transactions, is now rapidly evolving to incorporate digital payment methods.
Mobile Wallets Gain Popularity
Two mobile wallet companies, MonCash and Lajaon Cash, have emerged as key players in the digital payments market. MonCash, launched by Digicel, has over 900,000 customers, while Lajaon Cash, offered by National Credit Bank (BNC), has served more than 800,000 users.
- Mobile wallets allow Haitians to make transactions, pay bills, and access essential goods and services without the need for physical currency.
- The shift towards digital payments has been accelerated by the earthquake, which has disrupted traditional payment systems and made it difficult for people to access cash.
Online Banking Services Expand
In addition to mobile wallets, online banking services are also gaining traction in Haiti. SogeIzi, launched by Sogebank, allows users to open a savings account remotely and conduct transactions with non-bank correspondents. Unibank’s “Unibank tout kote” card, launched in 2014, enables anyone, regardless of location, to open a bank account and access essential services.
Financial Inclusion
The shift towards digital payments has significant implications for financial inclusion in Haiti. According to estimates, 25.7% of the population could be interested in mobile banking services, highlighting the vast potential for SFD (Social Financial Digital) services in the country.
- The government, financial institutions, and technology companies must work together to address the challenges facing the sector and propose appropriate solutions.
- As Haitians adapt to a new reality, the lessons learned from this crisis can inform strategies to improve access to financial services and promote economic stability.
Panorama of the Digital Financial Potential in Haiti
- 7 commercial banks serving a total of 2 million customers
- 52 financial cooperatives serving 912,806 members
- 132 microfinance institutions with 250,000 clients
- 2 mobile network operators (bank-led model with 2,797,990 users)
As Haiti rebuilds and recovers from the devastating earthquake, digital payments are playing a crucial role in facilitating economic activity and promoting financial inclusion.