Peru

Supporting micro and small enterprises to transition to responsible digital wage payments

Access to formal financial services has increased in recent years in Peru. According to data from Superintendencia de Banca, Seguros y Administradoras Privadas de Fondos de Pensiones (SBS), 56 per cent of the adult population owned an account in 2023, against 38 per cent in 2018. The increase was driven by the expansion of banking correspondents, the development of mobile banking and mobile money services and the effects of the pandemic. With regards to digital wage payments, World Bank data suggests that in 2021, 54 per cent of private sector earners received wages into an account in Peru. Despite progress, there are significant challenges in the access and/or usage of formal financial services, including digital wages, and in particular for women, low-income groups, small entrepreneurs and population living in rural areas.

We support the transition to digital wages for micro and small enterprises in cooperation with key government agencies, including the Ministry of Labor and Employment Promotion, Ministry of Production and their respective programmes and initiatives such as Centro Integrado Formaliza Peru and Tu Empresa. We also engage with la Superintendencia de Bancos y Seguros, the association of banks (ASBANC), as well as with the Chambers of commerce and Industry of Cusco and Trujillo, workers’ organizations, financial service providers including banks, cajas municipales and mobile money providers. Current activities in the country focus on the gastronomy, tourism and services sectors in Cusco and the commerce, agriculture and agroexport sectors in La Libertad.

Our intervention

• Build evidence through research and documenting of good practices to raise the profile of responsible digital wage payment, encourage employers and workers to transition, and inform policy development
• Develop tools and training materials to support the responsible transition and adoption by both employers and workers
• Develop a network of trainers on responsible wage digitization
• Strengthen capacities of MSMEs to transition to digital wage payments responsibly through training and mentoring
• Facilitate social dialogue for a supportive policy environment to accelerate the transition to responsible digital wage payments
• Participate in different local, national and international spaces such as workshops, forums, congresses and working groups to promote the wage digitization agenda in the country.