Karandaaz Pakistan Launches First-Ever Global Landscape Study on Digitising P2G Payments

Karachi, October 05, 2016 (PPI-OT): Karandaaz Pakistan today launched the “Global Landscape Study on Digitising P2G Payments”. This is the first-ever study to comprehensively examine the opportunities and challenges associated with digitizing person-to-government (P2G) payments. As the name suggests, P2G payments include mandatory payments (taxes, bill payments and fines), payments for government services (fees for passport, visa), as well as co-payments for social benefits (pensions).

With P2G payments estimated at USD 8 trillion globally, and USD 375 billion in low- and lower-middle-income countries, there is great value in digitizing these payments for governments, companies and consumers alike. Based on a preliminary global scan of 61 initiatives, and in-depth assessment of nine distinct P2G initiatives across seven countries—Rwanda, the Philippines, India, Tanzania, Ghana, Kenya and Pakistan—the report makes a compelling case for digitization.

While the report emphasizes the need for country-specific digitisation strategies depending on readiness levels in four overarching categories—infrastructure, regulatory environment, customer readiness, and stakeholder buy-in— it provides a rich documentation of varied use-cases and digitisation approaches. Emphasizing catalytic options and pitfalls with respect to each stakeholder group, the report provides recommendations for governments, businesses, and consumers, encouraging a jointly-crafted, systematic approach to digitization. Key findings from the report include, combining P2G efforts with other efforts such as G2P initiatives to disburse salaries could enhance the value proposition of both. P2G payments digitization can drive greater consumer adoption of digital payments, account usage and ultimately, other financial services. Automating the system brings benefits such as plugging leakages, introducing integrity and making it easy to track payments and user history.

Key questions explored in the report include can digitizing P2G payments drive financial inclusion? And what does it take to set up efficient, sustainable and inclusive digital P2G payment systems?

Karandaaz spokesperson said that we are confident that this report will encourage Pakistani stakeholders to introduce digital P2G initiatives that will eventually push the long-term adoption of digital payments among the unbanked and underbanked.

Karandaaz Pakistan commissioned the landscape study, with financial support from the Bill and Melinda Gates Foundation, and the Department for International Development (UKAid). The Consultative Group to Assist the Poor (CGAP) provided additional funding and technical expertise. Dalberg Global Development Advisors (Dalberg) authored the report.

For more information, contact:
Karandaaz Pakistan
1E, Ali Plaza, Nazimuddin Road,
D Chowk, Islamabad, Pakistan
Tel: +92-51-8449761
Email: info@karandaaz.com.pk
Website: www.karandaaz.com.pk