Constraints to Digital Financial Inclusion of Beneficiaries of PSARA Cash Transfer Program in Haiti: A demand-side Analysis and Recommendations
Summary — This World Bank report analyzes barriers to digital financial inclusion among beneficiaries of Haiti's PSARA cash transfer program. The study finds low uptake of digital financial services despite efforts to digitize payments, with only 57% of beneficiaries receiving payments through e-wallets by April 2023.
Key Findings
- Only 20% of PSARA beneficiaries have formal financial service provider accounts, while 39% have active mobile money accounts.
- Digital payment uptake increased from 3% in April 2022 to 57% by April 2023 after policy changes requiring beneficiaries with National IDs to receive payments through MonCash e-wallets.
- Main barriers to digital financial services include lack of mobile phones (32%), insufficient documentation (25%), and inadequate funds (19%).
- 30% of respondents participate in informal Village Savings and Loan Associations (VSLAs), showing higher engagement with community-based financial services.
- Vulnerable households, women, rural dwellers, and persons with disabilities face greater barriers to financial inclusion.
Full Description
The PSARA (Adaptive Social Protection for Increased Resilience) cash transfer program in Haiti, supported by the World Bank, aims to digitize payments to vulnerable households while promoting financial inclusion. This report analyzes the financial inclusion landscape among beneficiaries and identifies demand-side barriers to Digital Financial Services (DFS) uptake.
The study reveals that financial inclusion remains low among beneficiaries, with only 20% having formal financial service provider accounts and 39% having active mobile money accounts. The program faced significant challenges in digitizing payments, with only 3% of beneficiaries initially opting for digital payments in April 2022, though this increased to 57% by April 2023 after policy changes.
Key barriers to DFS adoption include lack of mobile phones (32% cite this reason), insufficient documentation (25%), and inadequate funds (19%). The report finds that access to and usage of financial services depends heavily on demographic characteristics, with vulnerable households, women, rural dwellers, and persons with disabilities facing greater barriers.
Despite low formal financial inclusion, the study notes higher participation in informal financial services, particularly Village Savings and Loan Associations (VSLAs), with 30% of respondents participating in such community banking groups. The report provides comprehensive recommendations to increase DFS demand and develop a robust digital financial ecosystem in Haiti.