Session
Organizer 1: Hannah Draper, Consumers International
Speaker 1: Costa Barbosa Alexandre, Civil Society, Latin American and Caribbean Group (GRULAC)
Speaker 2: Saroja Sundaram, Civil Society, Asia-Pacific Group
Speaker 3: Luca Belli, Civil Society, Latin American and Caribbean Group (GRULAC)
Speaker 4: Ritul Gaur, Civil Society, Asia-Pacific Group
Hannah Draper, Civil Society, Western European and Others Group (WEOG)
Jordan Sandman, Civil Society, Western European and Others Group (WEOG)
Luca Belli, Civil Society, Latin American and Caribbean Group (GRULAC)
Classroom
Duration (minutes): 60
Format description: The classroom layout provides the opportunity for dialogue between the speakers and a sizeable audience - ideally comprised of varying stakeholders involved in the expansion of financial DPI. The classroom layout therefore supports the objectives of the workshop, in which we will provide context about the state of financial DPI and its impact on consumers, provide examples of learnings and best practices from two concrete case studies (Brazilian Pix and India’s UPI), and then open the discussion for questions, critique and other feedback from audience members.
A. What regulatory frameworks are important to have in place to ensure consumer-centric values in the design and deployment of financial DPI? Which intergovernmental agencies and international processes can support nation-states in the adoption of such frameworks? B. How can redress mechanisms be best designed and implemented to compensate consumers for financial/data loss/fraud, including in the context of cross-border transfers? C. How can digital literacy initiatives best reach and inform (prospective) financial DPI users? How can public policy and business practices support inclusive and sustainable design that meets the current and actual needs and interests of (prospective) financial DPI consumers?
What will participants gain from attending this session? The case studies of Brazil's Pix payment system and India's UPI provide valuable insights into the opportunities and challenges of implementing digital public infrastructure for payments in practice. Though these systems have reached an impressive scale of adoption, bringing hundreds of millions into the digital economy, they are not without fault. For example, people who have been defrauded on these platforms lack mechanisms to quickly get their funds back. Pix and UPI represent geographically, regulatorily, and economically different contexts, offering insights into the consumer impacts of financial DPI across contexts, as well as the policies and regulations that are shaping this ecosystem. By examining the successes and risks of these real-world deployments, we can identify best practices and recommendations for future innovation in digital DPI. These efforts provide important learnings for ensuring digital payment systems harness opportunities for advancing financial inclusion, consumer protection, and inclusive economic growth.
Description:
When developed and deployed with consumer interests at the forefront, Digital Public Infrastructure (DPI) has the potential to be truly transformative. By increasing competition and fostering innovation in the financial sector, it can break down barriers to access and inclusion and increase opportunities for sustainable development. Case studies from Brazil and India show DPI’s potential to increase access to essential banking services, provide cost-effective alternatives to traditional payment methods, and drive competition in the financial sector. The promise of DPI lies in its ability to democratize finance, drive economic growth, and improve livelihoods at an unprecedented scale; however, without meaningful consultation across stakeholders - including from diverse consumer voices, expansion and reliance on financial DPI may further disenfranchise the very groups it intends to serve. For instance, rural communities with limited internet connectivity are at risk of being excluded from digital payment platforms, cutting them off from vital financial services. Women and low-income individuals, who already face disproportionate challenges in accessing traditional banking, are at risk of inequities being replicated and amplified in the digital realm. f strong data protection, cybersecurity and digital literacy initiatives do not accompany the rollout of financial DPI, consumers are more susceptible to falling victim to online scams, privacy breaches, and predatory lending. This workshop will discuss learnings, best practices and recommendations in financial DPI, drawing on two case studies: Brazil’s Pix payment system, which has enabled millions of previously unbanked individuals to participate in the digital economy while offering small businesses an affordable alternative to high credit card fees; and India's Unified Payment Interface (UPI), which has facilitated an explosion of digital transactions, empowering consumers and entrepreneurs alike. Panelists will discuss the importance of meaningful internet connectivity and digital literacy, anti-discrimination, data protection and cyber security to ensuring sustainable and inclusive financial DPI.
The workshop discussion will inform Consumer International’s financial DPI-related policy positions, including with regard to its engagements in G20 processes, as well as an official member of UNCTAD and the OECD's Consumer Policy Committee. Moreover, input from participants will help to identify areas for future research as well as opportunities for coordination and collaboration with other affected stakeholders. Lastly, the session is expected to shape funding strategies from major development and philanthropic partners in the space such as Co-Develop. Participants will be invited to stay in touch regarding future publications and events about consumer-centric financial DPI.
Hybrid Format: The online facilitator will work with the moderator to ensure meaningful engagement from both in-person and online participants in the workshop. In particular, the online facilitator will oversee the use of the “raise hand” function and collect questions from online participants; moreover, a mentimeter will be used to gauge audience understanding of the discussion topics. Speakers joining online will do a “dress-rehearsal” to pre-emptively ensure sufficient internet connectivity, and mitigate as many technical and logistical challenges as possible.
Report
The workshop highlighted the experience of Digital Public Infrastructures (DPIs) and explored whether and how they can be consumer-centric, discussing and comparing the experiences in Brazil and India. Luca Belli moderated the debate and was joined by Alexandre Costa Barbosa in person, and Ritul Gaur and Saroja Sundaram online.
Luca Belli, the first speaker, defined DPIs as interoperable systems, supposedly secure, built on open standards, and public. These systems allow both public and private services to operate. He also highlighted India's role in developing the concept and implementing these structures, comparing the Indian and Brazilian experiences in developing digital payment DPIs.
A central point he made was the role that well-utilized DPIs can play in digital sovereignty and as a regulatory mechanism. For example, Brazil's Pix created an alternative to the Visa and Mastercard duopoly. However, he also discussed the challenges and limits of these infrastructures, such as the lack of meaningful connectivity hindering access to them and the decisions regarding whether to use fully public or non-profit management for such systems.
Afterward, Alexandre Costa Barbosa drew attention to the scenario surrounding Pix, Brazil's digital payment system, and the broader implications of in both Brazil and the global context. He noted that the Pix experience has been widely successful in Brazil and how DPI can provide a more efficient, inclusive, and accessible alternative to private financial systems. However, concerns about market concentration and consumer rights remain, especially considering the use of AI in Pix by private banks and the lack of regulation. Another point he made was the need for financial DPI promoters to champion educational initiatives to foster both digital and financial literacy.
Next, Ritul Gaur discussed the challenges faced by Indian consumers using UPI, which accounted for 80% of digital payments in India in 2024. He pointed out several difficulties: issues with grievance mechanisms, inadequate language support, and poor user experiences in addressing complaints. He also noted that fraudulent activities, particularly in digital payments, are on the rise, with UPI-related fraud contributing significantly to complaints in the National Crime Records Bureau.
Ritul emphasized that while India has made progress in consumer protection through initiatives like the Central Bank's fraud registry and a national helpline, more comprehensive regulations and consumer protections are needed for a truly consumer-focused financial DPI. These should include: improving the Online Dispute Resolution (ODR) system to provide faster, more accessible solutions for consumers; simplifying the user experience across various apps to ensure consistent grievance reporting and resolution mechanisms; and incorporating better fraud detection systems and involving other sectors, such as telecom companies, in fraud prevention to enhance the overall robustness of DPI systems.
The final speaker, Saroja Sundaram, continued the discussion on problems faced by UPI consumers, such as transaction failures due to connectivity issues in rural areas, the lack of knowledge about grievance mechanisms, and language barriers when using the systems. She highlighted how the lack of digital literacy compounds these challenges, emphasizing the need for regulators to focus on literacy programs tailored to the diverse realities of the country.
Another key point was that grievance mechanisms need to allow consumers to easily file and track complaints, ensuring that dispute resolution and compensation are provided in a timely manner. The discussion wrapped up with the speakers underscoring the need for public discussions and monitoring in order to construct consumer-centered DPIs.