UN Principles for Responsible Digital Payments

6

Be transparent,
particularly on
pricing

The burgeoning growth of digital payments means that service providers are engaging more frequently with new users. These users are often bewildered by legal terminology, data disclaimers, software interfaces, and pricing structures that are complex and opaque. Even established users of digital payments demonstrate a reticence to read all the small print.

Misunderstanding fosters distrust. Distrust breeds reversions to cash. Providers need to move beyond mere compliance and actively equip the user with the knowledge they require to enjoy and benefit from digital payments.

RECOMMENDATIONS

Governments, companies and international development organizations can creatively communicate information about digital payments systems that is easily understood. This information could cover the benefits and risks of using digital payments vs. cash, how to access and use digital funds safely, and where to turn for support. Local languages and user-preferred channels should be used. Transparency on big data, algorithms and other technological advances ought also to be considered.

Institute service-level agreements that clearly define the information to be shared, and also prioritize user comprehension. This could include the user-focused development of limited-length communications or using visual summaries of terms and conditions to ensure disclosures serve users rather than protect providers.

Companies can creatively communicate information using local languages and delivery channels that are easily understood. This information could cover the benefits and risks of using digital payments, how to access and use digital funds safely, and where to access support.

PDF More recommendations on how to be transparent, particularly on pricing

IN PRACTICE

CONDUSEF, Mexico’s entity to defend user rights in financial services, was established to inform the public about institutions’ services and fees, curate a registry of users who have opted their data out of marketing initiatives, and impose sanctions on institutions that violate consumer rights.

The Government of Philippines conducted behavioural research and designed easy-to-understand loan disclosure forms, enabling better decision-making for users.

Singapore’s principles for the use of AI and data analytics recommend that financial service providers disclose their use of AI and data analytics to users. They also advise financial service providers to provide a clear explanation of which data are employed to make AI-driven decisions.

Google’s data privacy policy communicates to users clearly and simply (often using visuals and videos) which user data are collected and why, user privacy controls, and how data are protected. Crucially, it affords users the ability to revoke consent on data.