The Trust Quotient: Unlocking Responsible Digital Payments for Micro-Merchants

In the rapidly digitalizing economies of the Association of Southeast Asian Nations (ASEAN), micro-merchants play a pivotal role in expanding the digital payments ecosystem and ensuring that digital payments are delivered safely and responsibly. This policy toolkit, developed by the Better Than Cash Alliance in collaboration with the ASEAN Working Committee on Financial Inclusion and the Ministry of Finance, Government of Indonesia, explores the trust-based barriers faced by micro-merchants in adopting and sustaining the use of digital financial services.

Across ASEAN, 70 million micro, small, and medium-sized enterprises (MSMEs) are transitioning to digital financial services, with 80% of financially included adults making or receiving digital payments in 2021. However, micro-merchants continue to face challenges such as data privacy concerns, unexpected charges, and complex recourse mechanisms, which hinder their sustained use of digital financial services.

This toolkit offers actionable recommendations to support the development of secure, inclusive, and user-friendly digital payment systems. It provides practical guidance to policymakers and financial service providers on how to build and maintain trust among micro-merchants, ensuring that digital financial solutions contribute to inclusive economic growth.

Contents:

• Introduction to the Toolkit
• Insights from Micro-Merchants and User Stories
• Policy Recommendations for Responsible Digital Payments
• Pathways to Build Trust and Foster Adoption
• Conclusion and the Way Forward