Sofrecom, digital payments Typography Medium Default Share This In emerging countries, the digitization of financial transactions between governments and their citizens is often a cornerstone of public service dematerialization and digital transformation efforts. It addresses issues related to cash payments and can sometimes directly facilitate access to public services. While it offers numerous benefits, its success relies heavily on key factors for effective implementation. Cash Transactions: Costs, Risks, and Challenges In emerging countries, the collection of taxes, fees, and stamp duties by government agencies and public entities, as well as the distribution of benefits such as allowances, pensions, subsidies, and scholarships to citizens, often relies on cash transactions. These cash-based transactions present several disadvantages for both public authorities and citizens: Public Authorities: Establishing and managing payment counters incurs significant costs including personnel expenses for customer service, cash handling, and accounting oversight; administrative costs for documenting payments; and operational costs for running the counters. Additionally, cash operations are prone to risks such as errors, limited traceability, difficulties in tracking inflows and outflows, and security concerns. Citizens: The challenges faced can hinder access to public services. In remote areas, citizens may need to undertake long and potentially costly journeys to make […]
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