Digital Finance in the Education Sector
Education is among the most important tools for breaking the cycle of poverty and providing a brighter future for children. Yet there are 124 million children between the ages of 6 and 15 who are not in school, in many cases because their families struggle with the financial burden of educating their children.
Can innovations in mobile money help change this picture? There are several emerging opportunities for mobile payments and digital finance to transform the way people pay for and access education. For example, mobile money is making it easier to make school fee payments, to access and pay for online and mobile learning courses, and for schools and governments to pay teacher salaries. In addition, financial service providers are beginning to offer a range of digital savings and loan products that could help families manage the cost of education. Together, these innovations may play an important role in keeping more children in school.
This blog series complements the CGAP Working Paper on Digital Finance and Innovations in Financing for Education.