Evidence from IPA’s Transaction Cost Index: Measuring the “True” Cost of Digital Financial Services
Despite its proven benefits, take-up and continued usage of digital financial services (DFS) lags in many low- and middle-income countries. Though this challenge is multifaceted, the cost of using DFS, particularly mobile money, is a key barrier. Despite its importance, little has been done to systematically measure and monitor the true costs consumers face when conducting DFS transactions, including official fees, extra informal charges, and non-monetary costs such as failed transactions.