Swedish retail giant H&M has said it plans to digitize payments along its supply chain following findings that switching to digital payments holds huge benefits for garment industry employers and employees alike.
Paying workers using mobile money, bank accounts and other forms of digital payment can save an average garment factory in Bangladesh approximately 750 hours of staff time per month and reduce monetary costs by up to 85 percent within two years, according to a new report by the Better Than Cash Alliance, a United Nations-based partnership to accelerate the transition from cash to digital payments.
H&M is the first global fashion brand to join the partnership and commit to encouraging its suppliers to pay workers digitally. The Swedish fashion house employs 1.6 million people through its supply chain, who will benefit from greater access to financial services and the ability to make and receive payments in a faster, safer and more transparent way, according to the report. The partnership’s report also states that digital payments are also less vulnerable to loss and theft and can be more accurately recorded.
About the author
Sophie Edwards
Sophie Edwards is a Devex Contributing Reporter covering global education, water and sanitation, and innovative financing, along with other topics. She has previously worked for NGOs, and the World Bank, and spent a number of years as a journalist for a regional newspaper in the U.K. She has a master's degree from the Institute of Development Studies and a bachelor's from Cambridge University.