In an attempt to make their supply chains more transparent and efficient, Gap Inc. will transition from a cash-based system to digital payments by 2020.
Sixty percent of Gap Inc.'s supplier factories already provide digital payment methods. The new goal will positively impact the lives of more than one-million garment workers.
Women currently make up 80 percent of the garment industry and often live in a cash-only environment. Electronic wage payment methods have the benefit of drawing unbanked workers into a formal financial system. At the factory level, suppliers benefit from cost savings, due to increased efficiency and speed. All parties also benefit from increased accountability, transparency and security.
Gap Inc.announced that it has joined the United Nations-based Better Than Cash Alliance, a partnership of governments, companies and international organizations that accelerates the transition from cash to digital payments in order to reduce poverty and drive inclusive growth.
