Karandaaz Pakistan Launches Global Landscape Study on Digitising P2G Payments

Karandaaz Pakistan launched today the “Global Landscape Study on Digitising P2G Payments”, the first 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 (passport and visa fees), and 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 payments for governments, companies, and consumers. Based on a 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.

The report emphasizes the need for country-specific digitisation strategies based on readiness levels in four areas—infrastructure, regulatory environment, customer readiness, and stakeholder buy-in. It also provides rich and diverse examples of use-cases and digitisation approaches and key recommendations for governments, businesses, and consumers, encouraging a systematic approach to digitization.

The following questions have also been explored in the report: (a) Can digitizing P2G payments drive financial inclusion? (b) What does it take to set up efficient, sustainable, and inclusive digital P2G payment systems?

We hope that this report will encourage Pakistani stakeholders to introduce digital P2G initiatives that will not only make revenue collection for government more efficient and responsive to the needs of its citizenry, but also 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.