Government to Person (G2P) payments have risen in importance across the world, with government agencies and NGOs opting for these services to respond to the social and economic repercussions of COVID-19. Up until September 2020, close to 208 countries had announced at least 1461 social protection measures to combat the consequences of the pandemic, as per the International Labour Organization (ILO). It goes without saying that these massive payouts need a well-structured solution that can handle a large volume of payments and process the data while keeping it secured.

Digital G2P Payment refers to a direct payment or benefit transfer in the form of mobile money sent by government agencies to citizens through an electronic system. It is essential to go digital as the beneficiaries of government welfare schemes are often low-income unbanked citizens spread across geographies. A digital solution can easily cover beneficiaries in rural or remote areas with no banking networks. The manual process of cash distribution is not efficient or reliable and cannot be practiced in the current situation when social distancing is inevitable.

Let’s find out why government agencies are ditching manual cash disbursement in favor of digital solutions.