This is the first comprehensive study to systematically examine the opportunities and challenges associated with digitising P2G payments. In undertaking this study, we sought to answer two central questions: “Can digitising P2G payments help drive the financial inclusion of poor consumers?” and “What does it take to set up efficient, sustainable, and inclusive payment systems for government fees and services?
At an estimated USD 8 trillion across the globe and USD 375 billion in low- and lower-middle-income countries alone, person-to-government (P2G) payments make up a significant part of the payments landscape.1,2 The value proposition for digitising these payments is clear—and compelling: For governments, financial service providers (FSPs) and for consumers, including the unbanked and underbanked. Yet, digitising these payments has received relatively little attention to date, particularly in relation to other types of payments such as government- to-person (G2P), remittances, and merchant payments
