UPU joins group promoting a cash-free society
The Universal Postal Union has joined a global coalition governments and multinationals promoting a move away from cash towards digital payments. The UN-affiliated group of national postal administrations around the world said it has already supported the shift from cash to electronic payments for many years as paper money orders become “obsolete”, and new technologies are helping establish a worldwide network of electronic payment systems provided by Posts.
Berne-based UPU said being a member of the Better Than Cash Alliance will help further its work in this area, benefiting from the expertise of its members and taking advantage of opportunities from collaborating with other members of the Alliance.
UPU director-general Bishar A Hussein said modern electronic payment services were essential for bringing citizens into the financial fold, and lifting people out of poverty.
“The global network of more than 660,000 post offices – many of which are located in rural areas – is an important channel for formal remittance services and other financial offerings,” he said.
“Moving these transactions from cash to electronic payment not only ensures the money gets into the right hands, but it provides better protection for consumers, makes money movements transparent and creates more opportunities to better reach and serve the un- and under-banked.”
Posts
The UPU said several hundred million people already use post offices to pay government or utility bills.
It said 70 national Posts are using its international financial software to provide digital remittance services, and more than 50 Posts also offer account-based financial services, managing 1.6bn savings and deposit accounts.
The agency said that as letter volumes decline around the world, Posts are increasingly diversifying their businesses with the development of postal financial services.
The Better Than Cash Alliance was launched in September 2012 as a global public-private partnership. Founding members included the UN Capital Development Fund, the Bill & Melinda Gates Foundation, Citi, Visa and the Ford Foundation.
Dr Ruth Goodwin-Groen, managing director of the Better Than Cash Alliance, said: “The UPU is in a unique position to promote and support its members in the shift from cash to electronic payments. We applaud the work that the UPU has already undertaken to advance this transition and the steps it is taking to bring post offices globally into the 21th century.”
