LEARNING SERIES >> Our learnings from digitizing P2G payments in a customer-centric way

eTrade for all

11 January 2022

LEARNING SERIES >> Our learnings from digitizing P2G payments in a customer-centric way

Mia Ryan, Isvary Sivalingam and Gisela Davico-Thaler

Our previous blog reflected on learnings from engagements with member countries on tax digitalization.

Now, we explore the digitization of non-tax revenue people to government (P2G) payments. The digitization of non-fiscal P2G payments includes utilities, license fees, passport processing, and identity verification, and is increasingly important to reduce transaction costs and provide faster, more convenient, and transparent services for citizens.

Perhaps surprisingly, our members’ P2G payment digitization journeys have shown that technology itself is ultimately only one factor in achieving success. Enabling policies, clear processes, and user-centric products are, however, crucial. From our work on water utility payments in Ghana, we learned that user trust can be built through accurate and timely billing; transparent and verifiable transactions; and quick and responsive recourse mechanisms – all ideally supported by an automated customer relationship management (CRM) system. A robust and comprehensive change management process is also key to onboarding both internal and external stakeholders in the digitization journey.

Overall, three key learnings emerged from our engagements:

Secure cross-sector commitments and a supportive policy framework
Invest in appropriate, reliable customer-facing technology
Improve the user experience and design for a range of client needs and capabilities

Clearly, successful digitization of P2G payments and its widespread adoption by users is achievable – but depends on the alignment of various important factors. An effective change management system is crucial, as is securing buy-in from staff and ensuring that all segments of users are included in the transformation, so that digitization is truly inclusive. Shifting from cash requires a compelling value proposition, and that can be realized by implementing the UN Principles for Responsible Digital Payments throughout the digitization journey.