Indians lose $2 billion a year b/c of hassle of going to a bank to deposit cash and other reasons why digital money will help the developing world

Via Quartz:

Digital finance can provide access to financial services for 1.6 billion people—880 million of them women—in emerging economies for the first time, McKinsey said. This is within reach because the infrastructure already exists. In 2014, 80% of adults in developing nations had mobile subscriptions. By 2020, 90% of these adults will own a mobile phone.

Despite all this, cash is still overwhelmingly prevalent. In emerging nations, 90% of payment transactions are made in cash..

The poorest countries, such as Ethiopia, India and Nigeria could increase their GDP by up 12%, according to the study, because they are starting from a very low level of financial inclusion. Relatively richer countries such a China and Brazil could still boost economic growth by 5%.

McKinsey estimates that Indians lose more than $2 billion a year in forgone income simply from the time spent traveling to and from a bank. [link]

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