Cash and voucher assistance (CVA) has been gaining traction among humanitarian organizations as the preferred aid modality in disaster relief and complex emergencies. While the advantages of cash are well documented, the ongoing digitalization of cash and the emergence of innovative financial instruments can be associated with new operational challenges and a stagnation in innovation.

This paper reflects on the changing environment in CVA as a result of technological breakthroughs in the global financial system. The concept of humanitarian innovation is introduced to differentiate it from a similar process in the private sector and to investigate factors, contributing to a slower pace of acceptance, a reluctant implementation, or a complete rejection of innovative approaches in the humanitarian organization. The purpose of the study is to conceptualize the challenges of new technology adoption and scaling, as well as to analyze the direction and current stage of the diffusion of innovation in the humanitarian sphere.

Ten interviews with informants representing humanitarian agencies and the private sector were conducted to discuss their experiences with new CVA tools and perspectives on innovation in cash and voucher assistance. The results demonstrate that there is no uniform perception of innovation across the field, and the challenges of diffusion can be associated with several domains, including internal and external capacities, inherent characteristics of new financial technology (fintech), and a wider social, political, and regulatory context. According to the cyclical model of technological change, the innovative CVA fintech is currently at the ferment stage characterized by a high level of uncertainty and competition. The subsequent emergence of several dominant designs followed by incremental innovation is plausible in the future.