Increasing supply chain transparency through digital payments

Since 2005, Gap Inc. has worked with 110 factories in India – accounting for approximately 150,000 workers – to transition worker payrolls from cash to bank transfers.

Cash payroll led to operational inefficiencies for factories. Officials often spent multiple days disbursing cash, and workers would spend up to an hour collecting their salaries.

Large numbers of factory workers were unbanked, limiting their ability to control finances and start savings accounts. Absenteeism would increase substantially the day after cash disbursement as many workers would take the day off to pay rent, buy groceries, and send remittances to family.

The company’s efforts led to roughly 95 percent of its factory workers in India now being paid digitally.