Digital aid transforming a parched land into a vibrant landscape.

Digital Aid: Can Technology Solve Humanitarian Crises?

Avery Sinclair in Global Affairs August 2025 • 4 min read.

"A groundbreaking study reveals how digital payments are transforming aid delivery in conflict zones, offering a lifeline to vulnerable populations and sparking a revolution in humanitarian assistance."

The world is facing an unprecedented humanitarian crisis. Global hunger levels have reached record highs, and aid budgets are struggling to keep pace. Conflict-affected and fragile states are bearing the brunt, with oppressive regimes and aid diversion further compounding the challenges. In these dire circumstances, traditional aid delivery methods often fall short, making it imperative to explore innovative solutions.

Digital payment platforms have emerged as a promising alternative, offering a means to deliver assistance directly to vulnerable populations while bypassing corrupt governments and reducing the risk of diversion. However, skepticism and uncertainty have lingered due to a lack of concrete evidence on the effectiveness of digital aid in humanitarian response.

A recent study conducted in Afghanistan has shattered these doubts, demonstrating the transformative potential of digital payments in crisis settings. By partnering with community organizations, nonprofits, and private companies, researchers successfully delivered aid to extremely poor, female-headed households, achieving remarkable improvements in food security and mental well-being.

Digital Aid Delivery: A New Hope for Humanitarian Assistance?

Digital aid transforming a parched land into a vibrant landscape.

The study, conducted in Afghanistan, involved the experimental evaluation of digital payments to extremely poor, female-headed households. The intervention transferred $45 USD bi-weekly for two months, the equivalent of 3.75 months worth of average monthly household income in the sample. This was facilitated through a partnership between community organizations, a U.S.-based nonprofit (Uplift Afghanistan Fund), and the digital payment platform HesabPay. This partnership was designed to minimize interference by Taliban authorities.

The results of the experiment were overwhelmingly positive. Despite the low levels of education and literacy among the beneficiaries, 99.75% successfully used the digital payments. Furthermore, stringent checks revealed no evidence of diversion, addressing a major concern among policymakers and experts. Delivery costs were also significantly lower than traditional methods, coming in at under 7 cents per dollar, compared to the World Food Programme's global average of 17 cents per dollar for cash-based transfers.

Digital payments led to substantial improvements in:

Food security: Beneficiaries experienced a significant reduction in skipped meals and increased access to diverse food sources.
Mental well-being: Participants reported improved mental and financial health, demonstrating the holistic impact of digital aid.
Cost-Effectiveness: Delivery costs were drastically reduced, making aid distribution more efficient and sustainable.
Reduced Diversion: Stringent checks found no evidence of aid being diverted, ensuring assistance reached its intended recipients.

The study's findings challenge the skepticism surrounding digital aid and highlight its potential to address grand challenges in difficult contexts. By leveraging scalable technology and integrating private firms, digital payment systems can reduce coordination costs and delays, increase transparency for donors, preserve the privacy of beneficiaries, and utilize local supply chains without relying directly on local authorities.

The Future of Aid is Digital

The study offers a compelling vision for the future of aid delivery, one where technology plays a central role in reaching vulnerable populations and addressing humanitarian needs. As aid agencies increasingly adopt digital payment platforms, it is crucial to consider the key enabling conditions for success, including widespread access to mobile phones, a robust merchant network, and sufficient market availability of food products. By embracing innovation and fostering collaboration between community organizations, nonprofits, and private companies, we can unlock the full potential of digital aid and create a more effective and equitable humanitarian response system.

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This article is based on research published under:

DOI-LINK: https://doi.org/10.48550/arXiv.2312.13432,

Title: Can Digital Aid Deliver During Humanitarian Crises?

Subject: econ.gn q-fin.ec

Authors: Michael Callen, Miguel Fajardo-Steinhäuser, Michael G. Findley, Tarek Ghani

Published: 20-12-2023

Everything You Need To Know

How are digital payment platforms changing the landscape of humanitarian aid in conflict zones?

Digital payment platforms are revolutionizing aid delivery by providing a direct means of assistance to vulnerable populations, even in conflict-affected states like Afghanistan. They minimize the risk of aid diversion, which is a major issue with traditional methods, and enhance cost-effectiveness. This approach has shown improvements in food security and mental well-being among beneficiaries. The use of platforms like HesabPay in conjunction with organizations such as Uplift Afghanistan Fund, ensures aid reaches those in need while bypassing corrupt entities.

What specific benefits were observed when using digital payments to deliver aid to female-headed households in Afghanistan?

The study in Afghanistan revealed several significant benefits. Beneficiaries experienced improved food security, including a reduction in skipped meals and increased access to diverse food sources. Mental well-being also improved, indicating a holistic positive impact. Furthermore, digital payments proved highly cost-effective, with delivery costs significantly lower than traditional cash-based transfers, costing only 7 cents per dollar compared to the World Food Programme's average of 17 cents. Stringent checks also confirmed a lack of aid diversion.

How can partnerships between community organizations, nonprofits, and private companies improve digital aid delivery?

Partnerships between community organizations, nonprofits, and private companies are crucial for effective digital aid delivery. Community organizations provide local knowledge and access to beneficiaries. Nonprofits, like Uplift Afghanistan Fund, contribute experience in humanitarian work and ensure aid reaches the most vulnerable. Private companies offer the technological infrastructure, like HesabPay's digital payment platform, to facilitate secure and efficient transactions. These collaborations reduce coordination costs, increase transparency for donors, preserve beneficiary privacy, and leverage local supply chains without directly involving local authorities.

What are the critical enabling conditions that need to be considered for the successful adoption of digital payment platforms in humanitarian aid?

Several key factors are crucial for the successful adoption of digital payment platforms in humanitarian aid. Widespread access to mobile phones is essential for beneficiaries to receive and use digital payments. A robust merchant network is needed to allow beneficiaries to spend their funds on essential goods and services. Sufficient market availability of food products ensures that beneficiaries can purchase the necessary items to improve their food security. Overcoming challenges such as digital literacy and infrastructure limitations is also important.

What are the broader implications of using digital aid in addressing global hunger and humanitarian needs beyond the immediate benefits observed in Afghanistan?

Beyond the immediate improvements in food security, mental well-being, and cost-effectiveness seen in Afghanistan, digital aid has broader implications for addressing global hunger and humanitarian needs. It offers a scalable solution that can reach vulnerable populations in conflict zones and fragile states more efficiently and transparently than traditional methods. By reducing aid diversion and empowering beneficiaries directly, digital payments can foster greater accountability and sustainability in humanitarian assistance. This approach can be adapted and implemented in other regions facing similar challenges, potentially revolutionizing how aid is delivered worldwide. However, careful consideration of local contexts and technological infrastructure is crucial for successful implementation.