Constraints to Digital Financial Inclusion of Beneficiaries of PSARA Cash Transfer Program in Haiti - A Demand-side Analysis and Recommendations

The Adaptive Social Protection for Increased Resilience project (ASPIRE or PSARA for its acronym in French), financed by The World Bank and implemented by the government of Haiti, aims to design and implement a cash transfer program for vulnerable households in Haiti, with a focus on increasing financial inclusion and digitizing payments. This report analyzes the financial inclusion landscape of beneficiaries; identifies demand-side barriers to the uptake of Digital Financial Services (DFS); and provides recommendations for promoting the use of DFS among beneficiaries and their communities. The findings of this report show that while access to formal financial services is limited, there is more access and usage of mobile money and informal services through the Village Savings and Loan Associations (VSLAs). The report recommends actions to remove barriers to DFS usage, such as creating and promoting DFS use cases among beneficiaries, increasing trust and confidence in using e-wallets, working with policymakers to provide IDs for beneficiaries and with regulators to reduce Know Your Customer (KYC) on low-tier accounts, and increasing mobile phone ownership. Additionally, the report suggests strategies to support a robust DFS ecosystem, including designing attractive products for low-income customers and building a sustainable Cash-in and Cash-out agent network.