G2P Payments

Increasing efficiency of Government to Person payments

In its daily workings, governments across local, state and national levels make various payments to people of a country. This may be in the form of subsidies, pensions, scholarships, incentives during emergencies and more. Citizens may choose to receive these payments in different ways such as through cash, bank transfers, mobile wallets, prepaid vouchers, etc. These payments are made across various departments at different levels of functioning.

While each transaction may vary in amount or eligibility, there are a few common steps of executing any g2p payment:

1. Checking for eligibility of the beneficiaries according to pre-set scheme criteria using data from federated functional registries

2. Authenticating the identity of the eligible beneficiaries using online/offline, self/assisted modes

3. Mapping the authenticated, eligible beneficiaries to a store of value of their choice in which they choose to receive these payments using multiple payment rails

A G2P DPI is about building an overarching architecture as a simple +1 step to your existing systems that ensures interoperability, inclusions, privacy, security, autonomy and asynchronous adoption by design.

There are 4 key building blocks to the DPI approach in solving for G2P

The Unique ID / eKYC layer allows for uniquely identifying and authenticating each individual within seconds, saving time + effort + leakages on both sides.

The Financial address mapper connects an identifier to the individual's store of value of choice to receive the payments thus facilitating secure transfer of money to them.

The last mile agents help those with little to no digital literacy access the same benefits using their biometric data to drive financial inclusion from the ground up.

The network of cross functional registries help identify and sort individuals according to the eligibility criteria of various schemes while keeping the data decentransiled. It allows for autonomy of departments while building interconnectivity to drive efficiency.

This approach has enabled the Govt. of India to rapidly connect to their population of 1B+ people

There are few key learnings that make the G2P DPI approach unlike any other:

Key learnings of the G2P blueprint

While individual country adoptions may vary, the basic outline remains the same and can help countries rapidly deploy this approach.

Further readings:

1. The G2P blueprint
2. A presentation deck on the G2P approach