Page 260 - The Digital Financial Services (DFS) Ecosystem

ITU-T Focus Group Digital Financial Services
Ecosystem

3 BoP not participating

Despite massive global adoption, social networks have largely bypassed the BoP.

Figure 9 – Social network use

Low Internet adoption is a major contributor in the lack of BoP adoption, as are feature phone and smartphone
challenges. However, even if social network adoption grows, the commercial aspects won’t materialize without
financial inclusion – a consumer can’t buy unless they link a payment account like M-Pesa to their social
network account.

3.1 Low Internet adoption

Low Internet adoption is at the root of low social network adoption. As highlighted in Internet.org’s report,
"2015 State of Connectivity," Internet adoption experiences four key barriers:
• Availability: Proximity of the necessary infrastructure required for access. The reach of 2G data networks
is relatively high, but 3G or 4G mobile broadband networks that can carry richer data are needed.
• Affordability: The cost of access relative to income. Cost includes the data, device, and battery charging
costs (including travel costs).
• Relevance: There needs to be a reason for users to access, such as attractive content in a user’s main
language.
• Readiness: The capacity to access, including skills, awareness, and cultural acceptance.

Affordability is particularly striking. The impoverished simply cannot afford Internet access. For example, only
11 per cent of the population in Sub-Saharan Africa can afford 500MB per month (with "affordable" defined
as consuming less than 5 per cent of income). As a point of reference, 500MB allows for 8 minutes of video
per day. Average data consumption in developed countries is 3X higher, at 1400 MB per month.

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