Representative of various Government Ministries in Vanuatu were introduced to the benefits and business case for the digitization of government payments to its citizens.
The Reserve Bank of Vanuatu (RBV) has partnered with the Pacific Financial Inclusion Programme to hold a one-day introductory course on Wednesday to discuss the various payment flows that could be made digital.
Government-to-Person (G2P) payments are the digitization of government payments to citizens such as social transfers as well as wage and pension payments.
PFIP Deputy Programme Manager and training facilitator, Krishnan Narasimhan said that G2P payments has the potential to become a vehicle for extending financial inclusion and improving the welfare of poor people.
He added that by shifting to digital channels for its payments such as social, salary, procurement payments, taxation and licensing, the Vanuatu Government can reduce costs, increase efficiency and transparency and broaden familiarity with digital payments by its citizens.
“G2P flows builds in part on the progress made by the industry and the regulators to grow the branchless banking industry. It creates an enabling environment for the private sector to further its person-to-person payments (P2P) which in turn will develop a long-term business case,” he said.