A New Generation of Government-to-Person Payments Is Emerging

A new generation of government-to-person (G2P) payment systems is emerging in Africa, Asia and the Pacific. As described in CGAP’s new publication, “The Future of G2P Payments: Expanding Customer Choice,” modern approaches of transferring cash assistance can reduce costs for governments, significantly improve recipients’ access to payments and bring digital G2P one step closer to becoming the large-scale conduit for financial inclusion that observers have always hoped it would be. The main difference between these new systems and traditional approaches to digital G2P is that they give people greater choice over how to receive government payments. We see an opportunity for G2P recipients to receive better payment services from providers they trust and value — an important first step for a sustained financial inclusion journey.