By The International Finance Corporation (IFC), the private-sector arm of the World Bank Group, said on September 9 it has launched a risk-sharing initiative to help banks and fintechs in emerging markets expand digital payment services for consumers and small businesses.
The program will initially provide up to $700 million in guarantees to cover part of the credit settlement risk that financial institutions face when processing digital transactions, the IFC said in a statement.
By absorbing some of that risk, the initiative is designed to let more banks and fintechs meet the financial requirements needed to participate in global payment networks, enabling them to offer card and digital payment services to a wider range of customers.
The IFC said many financial institutions in developing countries are currently held back by capital and collateral requirements that restrict their ability to join international payment ecosystems. As a result, it said, millions of people and merchants remain dependent on cash and excluded from digital financial services.
“Expanding digital payments in emerging markets is one of the most powerful tools to create jobs and bring people into the formal economy,” IFC Managing Director Makhtar Diop said in the statement.
“When a small business owner or woman entrepreneur accepts a card payment, it opens the door to more customers, more revenue, and a foothold in the digital economy,” Diop said. “Yet too many banks and fintechs face financial requirements that limit their ability to expand digital payment services. This initiative changes that.”
The IFC estimates that financial institutions taking part in the initiative will see digital payment volumes rise by about $280 billion. It projects the program will lead to the issuance of 360 million additional payment cards and an increase of 90 million active digital payment users, including 39 million women.
The initiative targets groups the IFC says have historically been excluded from formal financial systems, including small business owners, women entrepreneurs and low-income households that rely primarily on cash.
By easing the settlement-risk burden on local lenders, the IFC said the program is also expected to increase competition among payment providers in emerging markets, which it said should improve the quality and affordability of digital payment services over time.
The initiative is the latest in a series of IFC efforts aimed at deepening access to financial services in developing economies. The IFC operates in more than 100 countries and focuses on mobilizing private capital and expertise to support businesses and financial institutions in emerging markets.
In its 2025 fiscal year, the IFC committed a record $71.7 billion to private companies and financial institutions in developing countries, according to the organization.
The World Bank Group has for years pushed digital financial inclusion as a tool for economic development, arguing that access to formal payment systems helps individuals and small businesses save money, access credit and manage financial risk more effectively.
Digital payment adoption has grown rapidly across emerging markets in recent years, driven by mobile phone penetration and fintech expansion, but large gaps in access persist, particularly among women, rural populations and small merchants.
Cash remains dominant in many low- and middle-income countries, limiting the ability of small businesses to grow their customer base and access formal credit.
The World Bank Group has previously identified digital payments as a foundation for broader financial inclusion, noting that individuals who can receive and make digital payments are more likely to save formally, access other financial products and better withstand economic shocks.
