New proposal would make online payments easier, cheaper, safer in Colombia: govt

Mauricio Cárdenas (Photo: La Patria)

The Colombian government announced a proposal Thursday intended to make online transactions cheaper and more secure, reported local media. 

The program involves the creation of an online banking company backed by the government. Using only their government ID to register, Colombians and Colombian residents will have access to a safe transaction network where they can pay bills, send money to family and shop online.

“This will definitely enable financial inclusion to reach the most remote areas of the country at low cost, also creating a history of payments and savings as a basis for future access to credit at banks,” said Finance Minister Mauricio Cardenas.

The minister indicated transaction could reach as low as $o.50 per payment, according to the La Republica financial publication.

This week, it was revealed that only a third of Colombians have a bank account and only one in five have savings put away to deal with a family or medical emergency.

MORE: Only 1 in 3 Colombians has savings account: World Bank

Many in the country turn to informal channels for loans. Off-line banking access has increased in recent years, however, with 99% of municipalities in Colombia covered by financial institutions.

MORE: Colombia ‘sets excellent example’ for increasing banking access: Dutch Queen

The so-called Financial Inclusion law was presented before Congress Thursday by the Ministries of Technology, Communications and Finance and will now be vetted through the legislative process.

Sources

Related posts

Former top Petro aide jailed amid corruption probe

Colombia’s congress sinks Petro’s budget finance bill

Former Medellin Cartel boss te return to Colombia on December 12