Digitizing payments from and to governments

PFIP views the expansion of digital government-to-person (G2P) and person-to-government (P2G) transfers and payments as the single most important action that governments can take to introduce large numbers of people to digital financial services and hence financial inclusion, while also providing a critical mass of transaction volume and customers to enable sustainability of services.

A growing number of countries are employing G2P strategies to enable branchless banking models and financial inclusion as a policy objective, while also increasing transparency and traceability of funds, increasing efficiency and hence resulting cost savings.

In 2011, PFIP engaged with the Fijian Department of Social Welfare and Ausaid Fiji to digitize welfare payments for over 20,000 very low-income clients, mostly women, the first successful G2P project in the Pacific. Following the success of the project, PFIP published a report with the aim of the Fiji case study to serve as a model for other countries in the region. The report highlighted several replicable steps for successful implementation of G2P initiatives.

PFIP continues to advocate for partner governments to join the Better Than Cash Alliance, committing to digitize government payments. In 2015, Papua New Guinea became the first country in the Pacific to do so, with Fiji to follow in 2016.

For further information see Westpac Digitizing Social Welfare Payments