A. M. 
The advance of digital payments continues to transform low- and middle-income economies, driving new opportunities for growth and formalization. However, a significant challenge remains: limited access to formal credit, especially among the self-employed.
According to the latest Global Findex data, financial stress remains a daily reality for small business owners. Thirteen percent of self-employed workers consider business expenses to be their main concern. Although credit could alleviate this burden, only a quarter of adults in these economies used formal credit in the last year. In contrast, 35% turned to informal sources, such as family and friends.
Informality is even more evident in loans for productive activities: of the 15% of self-employed adults who sought financing for their businesses, most did so through informal channels. This situation underscores the need to expand formal, accessible, and responsible financing options. Among the emerging alternatives are cash flow-based lending models, which use digital payment histories to assess creditworthiness, offering a bridge to financial inclusion.
At the same time, the payment of wages and public benefits is undergoing a rapid transition to digitalization. In low- and middle-income economies, 75% of government payment recipients receive wages, pensions, or transfers directly into bank accounts. In the private sector, approximately half of workers already receive their remuneration digitally, strengthening financial traceability and efficiency.
Digitization is also driving new economic opportunities. The growth of e-commerce and online payments allows small businesses to reach new markets and strengthen their ability to generate income. Currently, 37% of adults pay for services online, while 36% purchase products through digital platforms, reflecting a profound change in consumer habits and the way merchants access customers.
The expansion of digital payments is an engine of economic development, but its potential can only be maximized if inclusion in formal credit advances in parallel. The combination of robust digital infrastructure, responsible financial products, and financial education will be key to reducing informality and expanding economic opportunities in the coming years.
