Ideas & Updates

Moldova pledges to digitize payments for all public services, joins Better Than Cash Alliance

© UNDP Flickr

The Republic of Moldova has joined the UN-housed Better Than Cash Alliance to make digital payments for all public services a reality by 2020.

Moldova’s Prime Minister Valeriu Strelet spearheaded the commitment to join the Alliance, which will provide the government with access to research, toolkits and communities of practice to inform strategies for digitizing payments. The Alliance is thrilled to work in partnership with Moldova to improve the lives of millions of people, particularly poor people and women.

By expanding digital financial services, Moldova will empower its people and strengthen the local economy. A growing body of research has shown that digital financial services can help more people build savings while providing governments, companies, and development organizations with a more efficient, transparent, and safe method of receiving and making payments.

In recent years, Moldova has made impressive strides to create a digital payment ecosystem with the convenience to help bring more people into the formal financial system. In 2013, the Government of Moldova ¬– through E-Government Center working in collaboration with the Ministry of Finance and the National Bank of Moldova– implemented the Governmental Service of Electronic Payments MPay. This service enables people to pay for public services such as taxes, police fines, medical insurance, and visas with digital payment instruments in the market. Recognizing the benefits of digital payments, the Government also wants to explore the option of providing digital government-to-person payments such as stipends, social security, and pensions.