5 CONCLUSION

5

CONCLUSION

Across the region, the landscape on regulatory approaches to digital payments transaction costs is a dynamic one, defined by the level of influence or participation of regulators and providers in oversight and decision making. It confirms that cost is a determinant of market forces or players yet acknowledges the regulator’s critical role in safeguarding consumer protection, market conduct and financial inclusion.

Indeed, transaction cost could be manipulated to drive financial inclusion. However, regulators must ensure that it does not jeopardize the business case for providers as that is critical in safeguarding the sustainability of digital payments by providers.

Regulatory guidelines, innovative policy incentives and moral suasion remain viable mechanisms for the regulator in the governance of transaction costs.

In response to COVID-19, regulatory interventions on digital payments transaction costs presented the most viable evidence to potentially lower transaction cost in order to drive financial inclusion. Moving forward, regulators should continue engaging providers on how to ensure transaction cost does not stifle financial inclusion.