Improving Payment Mechanisms in Cash-Based Safety Net Programs
Cash transfers have proliferated in the past decade as key policy instruments to tackle vulnerability and inequality. Payment mechanisms (PMs), the backbone of cash transfers, are the channels through which cash travels from the funding source to t...
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| Format: | Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2013/08/18821509/improving-payment-mechanisms-cash-based-safety-net-programs http://hdl.handle.net/10986/17618 |
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okr-10986-17618 |
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oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
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World Bank |
| language |
English en_US |
| topic |
ACCESS TO BANKING ACCESS TO FINANCIAL SERVICES ACCESSIBILITY ACCOUNT BALANCE ACCOUNT INFORMATION ACCOUNT NUMBER ACCOUNTING ACCREDITATION ACCURATE INFORMATION ADMINISTRATIVE BURDEN ADMINISTRATIVE COST ADMINISTRATIVE COSTS AFFORDABILITY ANNUAL PAYMENT ATM AUTHORIZATION AUTOMATIC TELLER AUTOMATION BANK ACCOUNT BANK ACCOUNTS BANK BRANCH BANK BRANCHES BANK TRANSACTIONS BANKING CUSTOMERS BANKING INFORMATION BENEFICIARIES BENEFICIARY BIOMETRICS BRIBE BRIBES BRIBING CAPITAL INVESTMENT CARD READERS CARDHOLDER CARDHOLDERS CASH PAYMENT CASH PAYMENTS CASH TRANSACTION CASH TRANSFER CASH TRANSFERS CASH WITHDRAWAL CELL PHONE CELL PHONES CENTRAL BANK CLAIM COLLECT PAYMENTS COMMERCIAL BANK COMMERCIAL BANKS COMMUNITY DEVELOPMENT CORRUPTION COST SAVINGS COST-BENEFIT COUPONS CREDIT COOPERATIVE CREDIT COOPERATIVES DEBIT CARD DEBIT CARDS DEPOSITS DIRECT DEPOSIT DISBURSEMENT DISBURSEMENTS ELECTRONIC PAYMENT ELECTRONIC PAYMENTS ELIGIBILITY CRITERIA ENROLLMENT EQUIPMENT EXPENDITURE EXPENDITURES EXPENSE MANAGEMENT FAMILIES FINANCIAL ACCOUNT FINANCIAL ACCOUNT INFORMATION FINANCIAL ACCOUNTS FINANCIAL ARRANGEMENTS FINANCIAL INFRASTRUCTURE FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL REGULATION FINANCIAL REGULATIONS FINANCIAL SERVICES FINANCIAL TRANSACTIONS FINGERPRINT FLOW OF FUNDS FLOW OF INFORMATION FRAUD FUNDING SOURCE GENDER GEOGRAPHIC BARRIERS GOVERNMENT GRANT GOVERNMENT PAYMENT GOVERNMENT PAYMENTS GROUP ACCOUNT HARDWARE HOLDING HOUSEHOLDS ID ID CARD ID NUMBER IDENTIFICATION IDENTIFICATION CARD IDENTIFICATION CARDS IDENTIFICATION VERIFICATION IDENTITY CARD IDS ILLITERACY INEQUALITY INFORMATION FLOWS INFORMATION SYSTEM INFORMATION SYSTEMS INSTALLMENTS INSTITUTIONAL ARRANGEMENTS INSTITUTIONAL CAPACITY INSURANCE INTENDED RECIPIENTS INTERNAL CONTROLS INTERNATIONAL BANK INTERNATIONAL DEVELOPMENT INVESTMENT COSTS INVESTMENT FUNDS ISSUANCE LEGAL ENVIRONMENT LEGAL FRAMEWORK LEVERAGE LEVERAGES LIQUIDITY LOCAL CAPACITY LOCAL GOVERNMENT MAGNETIC STRIP MAGNETIC STRIPE MAGNETIC STRIPES MANAGEMENT INFORMATION MANDATE MARKET LEVEL MERCHANTS MFI MICRO FINANCE MICRO FINANCE INSTITUTIONS MICROFINANCE MICROFINANCE INSTITUTIONS MOBILE BANKS MOBILE PHONE MOBILE PHONES MONEY ORDERS NATIONAL BANKS ONLINE PAYMENT OPERATING COSTS OPPORTUNITY COST OUTREACH PASSWORD PAYMENT APPLICATION PAYMENT ARRANGEMENTS PAYMENT AUTHORIZATION PAYMENT FLOW PAYMENT FLOWS PAYMENT INFORMATION PAYMENT INSTRUMENT PAYMENT INSTRUMENTS PAYMENT MECHANISM PAYMENT MECHANISMS PAYMENT METHOD PAYMENT METHODS PAYMENT ORDER PAYMENT ORDERS PAYMENT TRANSACTION PENALTIES PENALTY PENSION PENSIONS PERSONAL IDENTIFICATION PERSONAL IDENTIFICATION NUMBER POINT OF SALE POLICE STATION POSSESSION POST OFFICE POST OFFICES PRIVATE BANK PRIVATE BANKS PROFITABILITY PUBLIC FUNDS RECEIPT RECEIPT OF PAYMENT RECEIPTS RECEIVERS REGULATORY ENVIRONMENT REGULATORY FRAMEWORK REMITTANCES SAFETY NET SAFETY NETS SAVINGS SAVINGS ACCOUNT SAVINGS ACCOUNTS SERVICE PROVIDER SERVICE PROVIDERS SERVICE PROVISION SIGNATURE SMALL PAYMENTS SMART CARD SMART CARD READER SMART CARD TECHNOLOGY SMART CARDS SOCIAL DEVELOPMENT SOCIAL SECURITY STAKEHOLDER STAKEHOLDERS START-UP START-UP COSTS STATE BANK STATE BANKS SUBSCRIBER IDENTITY MODULE SUBSCRIBER IDENTITY MODULES TECHNICAL INFRASTRUCTURE TECHNOLOGICAL INFRASTRUCTURE TELECOMMUNICATION NETWORK TELECOMMUNICATIONS TRADITIONAL PAYMENTS TRANSACTION COSTS TRANSACTION INFORMATION TRANSACTION PROCESSING TRANSACTIONS COSTS TRANSFER OF FUNDS TRANSPARENCY TREASURY URBAN AREAS VILLAGE VULNERABLE CHILDREN VULNERABLE GROUPS WAGES WIRE TRANSFER WITHDRAWAL OF FUNDS |
| spellingShingle |
ACCESS TO BANKING ACCESS TO FINANCIAL SERVICES ACCESSIBILITY ACCOUNT BALANCE ACCOUNT INFORMATION ACCOUNT NUMBER ACCOUNTING ACCREDITATION ACCURATE INFORMATION ADMINISTRATIVE BURDEN ADMINISTRATIVE COST ADMINISTRATIVE COSTS AFFORDABILITY ANNUAL PAYMENT ATM AUTHORIZATION AUTOMATIC TELLER AUTOMATION BANK ACCOUNT BANK ACCOUNTS BANK BRANCH BANK BRANCHES BANK TRANSACTIONS BANKING CUSTOMERS BANKING INFORMATION BENEFICIARIES BENEFICIARY BIOMETRICS BRIBE BRIBES BRIBING CAPITAL INVESTMENT CARD READERS CARDHOLDER CARDHOLDERS CASH PAYMENT CASH PAYMENTS CASH TRANSACTION CASH TRANSFER CASH TRANSFERS CASH WITHDRAWAL CELL PHONE CELL PHONES CENTRAL BANK CLAIM COLLECT PAYMENTS COMMERCIAL BANK COMMERCIAL BANKS COMMUNITY DEVELOPMENT CORRUPTION COST SAVINGS COST-BENEFIT COUPONS CREDIT COOPERATIVE CREDIT COOPERATIVES DEBIT CARD DEBIT CARDS DEPOSITS DIRECT DEPOSIT DISBURSEMENT DISBURSEMENTS ELECTRONIC PAYMENT ELECTRONIC PAYMENTS ELIGIBILITY CRITERIA ENROLLMENT EQUIPMENT EXPENDITURE EXPENDITURES EXPENSE MANAGEMENT FAMILIES FINANCIAL ACCOUNT FINANCIAL ACCOUNT INFORMATION FINANCIAL ACCOUNTS FINANCIAL ARRANGEMENTS FINANCIAL INFRASTRUCTURE FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL REGULATION FINANCIAL REGULATIONS FINANCIAL SERVICES FINANCIAL TRANSACTIONS FINGERPRINT FLOW OF FUNDS FLOW OF INFORMATION FRAUD FUNDING SOURCE GENDER GEOGRAPHIC BARRIERS GOVERNMENT GRANT GOVERNMENT PAYMENT GOVERNMENT PAYMENTS GROUP ACCOUNT HARDWARE HOLDING HOUSEHOLDS ID ID CARD ID NUMBER IDENTIFICATION IDENTIFICATION CARD IDENTIFICATION CARDS IDENTIFICATION VERIFICATION IDENTITY CARD IDS ILLITERACY INEQUALITY INFORMATION FLOWS INFORMATION SYSTEM INFORMATION SYSTEMS INSTALLMENTS INSTITUTIONAL ARRANGEMENTS INSTITUTIONAL CAPACITY INSURANCE INTENDED RECIPIENTS INTERNAL CONTROLS INTERNATIONAL BANK INTERNATIONAL DEVELOPMENT INVESTMENT COSTS INVESTMENT FUNDS ISSUANCE LEGAL ENVIRONMENT LEGAL FRAMEWORK LEVERAGE LEVERAGES LIQUIDITY LOCAL CAPACITY LOCAL GOVERNMENT MAGNETIC STRIP MAGNETIC STRIPE MAGNETIC STRIPES MANAGEMENT INFORMATION MANDATE MARKET LEVEL MERCHANTS MFI MICRO FINANCE MICRO FINANCE INSTITUTIONS MICROFINANCE MICROFINANCE INSTITUTIONS MOBILE BANKS MOBILE PHONE MOBILE PHONES MONEY ORDERS NATIONAL BANKS ONLINE PAYMENT OPERATING COSTS OPPORTUNITY COST OUTREACH PASSWORD PAYMENT APPLICATION PAYMENT ARRANGEMENTS PAYMENT AUTHORIZATION PAYMENT FLOW PAYMENT FLOWS PAYMENT INFORMATION PAYMENT INSTRUMENT PAYMENT INSTRUMENTS PAYMENT MECHANISM PAYMENT MECHANISMS PAYMENT METHOD PAYMENT METHODS PAYMENT ORDER PAYMENT ORDERS PAYMENT TRANSACTION PENALTIES PENALTY PENSION PENSIONS PERSONAL IDENTIFICATION PERSONAL IDENTIFICATION NUMBER POINT OF SALE POLICE STATION POSSESSION POST OFFICE POST OFFICES PRIVATE BANK PRIVATE BANKS PROFITABILITY PUBLIC FUNDS RECEIPT RECEIPT OF PAYMENT RECEIPTS RECEIVERS REGULATORY ENVIRONMENT REGULATORY FRAMEWORK REMITTANCES SAFETY NET SAFETY NETS SAVINGS SAVINGS ACCOUNT SAVINGS ACCOUNTS SERVICE PROVIDER SERVICE PROVIDERS SERVICE PROVISION SIGNATURE SMALL PAYMENTS SMART CARD SMART CARD READER SMART CARD TECHNOLOGY SMART CARDS SOCIAL DEVELOPMENT SOCIAL SECURITY STAKEHOLDER STAKEHOLDERS START-UP START-UP COSTS STATE BANK STATE BANKS SUBSCRIBER IDENTITY MODULE SUBSCRIBER IDENTITY MODULES TECHNICAL INFRASTRUCTURE TECHNOLOGICAL INFRASTRUCTURE TELECOMMUNICATION NETWORK TELECOMMUNICATIONS TRADITIONAL PAYMENTS TRANSACTION COSTS TRANSACTION INFORMATION TRANSACTION PROCESSING TRANSACTIONS COSTS TRANSFER OF FUNDS TRANSPARENCY TREASURY URBAN AREAS VILLAGE VULNERABLE CHILDREN VULNERABLE GROUPS WAGES WIRE TRANSFER WITHDRAWAL OF FUNDS del Ninno, Carlo Subbarao, Kalanidhi Kjellgren, Annika Quintana, Rodrigo Improving Payment Mechanisms in Cash-Based Safety Net Programs |
| relation |
Social protection and labor discussion paper;no. 1305 |
| description |
Cash transfers have proliferated in the
past decade as key policy instruments to tackle
vulnerability and inequality. Payment mechanisms (PMs), the
backbone of cash transfers, are the channels through which
cash travels from the funding source to the hands of
beneficiaries. In theory, the harmonization of payment flows
in PMs with other program processes is critical to
delivering the right benefit to the right people at the
right time while minimizing costs. In reality, however, PMs
tend to remain disconnected, rendering payments inefficient
and plagued by error, fraud and corruption. In recent years,
program operators, financial institutions, and technology
innovators have developed strategies for streamlining
payment flows. These innovations, if properly integrated
into program management through a Management Information
System (MIS) and supported by rigorous outreach, can not
only promote efficiency and transparency but also ensure
effectiveness. This paper provides a framework for
integrating PMs within program management. It walks the
reader through seven basic steps to process payments. It
does so by articulating the flow of beneficiary information
and funds from the point of beneficiary enrollment to
payment reconciliation and grievance redress. It also looks
at the framework through the lenses of different cash
transfer interventions and the cases of Kenya, Rwanda, and
Mexico. The paper concludes that to execute successful PMs
it is key to: (i) integrate payments within an MIS; (ii)
adopt a cost-effective mix of traditional and technology
instruments suitable to the country's context in the
short and long run; (iii) decentralize the control and
accountability of service provision across government
levels; (iv) understand the capacity and incentives of
stakeholders; (v) provide manuals, training and information
to key players; and (vi) enforce payment parameters and
penalize their violation. |
| format |
Publications & Research :: Working Paper |
| author |
del Ninno, Carlo Subbarao, Kalanidhi Kjellgren, Annika Quintana, Rodrigo |
| author_facet |
del Ninno, Carlo Subbarao, Kalanidhi Kjellgren, Annika Quintana, Rodrigo |
| author_sort |
del Ninno, Carlo |
| title |
Improving Payment Mechanisms in Cash-Based Safety Net Programs |
| title_short |
Improving Payment Mechanisms in Cash-Based Safety Net Programs |
| title_full |
Improving Payment Mechanisms in Cash-Based Safety Net Programs |
| title_fullStr |
Improving Payment Mechanisms in Cash-Based Safety Net Programs |
| title_full_unstemmed |
Improving Payment Mechanisms in Cash-Based Safety Net Programs |
| title_sort |
improving payment mechanisms in cash-based safety net programs |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2013/08/18821509/improving-payment-mechanisms-cash-based-safety-net-programs http://hdl.handle.net/10986/17618 |
| _version_ |
1764437977078956032 |
| spelling |
okr-10986-176182021-04-23T14:03:39Z Improving Payment Mechanisms in Cash-Based Safety Net Programs del Ninno, Carlo Subbarao, Kalanidhi Kjellgren, Annika Quintana, Rodrigo ACCESS TO BANKING ACCESS TO FINANCIAL SERVICES ACCESSIBILITY ACCOUNT BALANCE ACCOUNT INFORMATION ACCOUNT NUMBER ACCOUNTING ACCREDITATION ACCURATE INFORMATION ADMINISTRATIVE BURDEN ADMINISTRATIVE COST ADMINISTRATIVE COSTS AFFORDABILITY ANNUAL PAYMENT ATM AUTHORIZATION AUTOMATIC TELLER AUTOMATION BANK ACCOUNT BANK ACCOUNTS BANK BRANCH BANK BRANCHES BANK TRANSACTIONS BANKING CUSTOMERS BANKING INFORMATION BENEFICIARIES BENEFICIARY BIOMETRICS BRIBE BRIBES BRIBING CAPITAL INVESTMENT CARD READERS CARDHOLDER CARDHOLDERS CASH PAYMENT CASH PAYMENTS CASH TRANSACTION CASH TRANSFER CASH TRANSFERS CASH WITHDRAWAL CELL PHONE CELL PHONES CENTRAL BANK CLAIM COLLECT PAYMENTS COMMERCIAL BANK COMMERCIAL BANKS COMMUNITY DEVELOPMENT CORRUPTION COST SAVINGS COST-BENEFIT COUPONS CREDIT COOPERATIVE CREDIT COOPERATIVES DEBIT CARD DEBIT CARDS DEPOSITS DIRECT DEPOSIT DISBURSEMENT DISBURSEMENTS ELECTRONIC PAYMENT ELECTRONIC PAYMENTS ELIGIBILITY CRITERIA ENROLLMENT EQUIPMENT EXPENDITURE EXPENDITURES EXPENSE MANAGEMENT FAMILIES FINANCIAL ACCOUNT FINANCIAL ACCOUNT INFORMATION FINANCIAL ACCOUNTS FINANCIAL ARRANGEMENTS FINANCIAL INFRASTRUCTURE FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL REGULATION FINANCIAL REGULATIONS FINANCIAL SERVICES FINANCIAL TRANSACTIONS FINGERPRINT FLOW OF FUNDS FLOW OF INFORMATION FRAUD FUNDING SOURCE GENDER GEOGRAPHIC BARRIERS GOVERNMENT GRANT GOVERNMENT PAYMENT GOVERNMENT PAYMENTS GROUP ACCOUNT HARDWARE HOLDING HOUSEHOLDS ID ID CARD ID NUMBER IDENTIFICATION IDENTIFICATION CARD IDENTIFICATION CARDS IDENTIFICATION VERIFICATION IDENTITY CARD IDS ILLITERACY INEQUALITY INFORMATION FLOWS INFORMATION SYSTEM INFORMATION SYSTEMS INSTALLMENTS INSTITUTIONAL ARRANGEMENTS INSTITUTIONAL CAPACITY INSURANCE INTENDED RECIPIENTS INTERNAL CONTROLS INTERNATIONAL BANK INTERNATIONAL DEVELOPMENT INVESTMENT COSTS INVESTMENT FUNDS ISSUANCE LEGAL ENVIRONMENT LEGAL FRAMEWORK LEVERAGE LEVERAGES LIQUIDITY LOCAL CAPACITY LOCAL GOVERNMENT MAGNETIC STRIP MAGNETIC STRIPE MAGNETIC STRIPES MANAGEMENT INFORMATION MANDATE MARKET LEVEL MERCHANTS MFI MICRO FINANCE MICRO FINANCE INSTITUTIONS MICROFINANCE MICROFINANCE INSTITUTIONS MOBILE BANKS MOBILE PHONE MOBILE PHONES MONEY ORDERS NATIONAL BANKS ONLINE PAYMENT OPERATING COSTS OPPORTUNITY COST OUTREACH PASSWORD PAYMENT APPLICATION PAYMENT ARRANGEMENTS PAYMENT AUTHORIZATION PAYMENT FLOW PAYMENT FLOWS PAYMENT INFORMATION PAYMENT INSTRUMENT PAYMENT INSTRUMENTS PAYMENT MECHANISM PAYMENT MECHANISMS PAYMENT METHOD PAYMENT METHODS PAYMENT ORDER PAYMENT ORDERS PAYMENT TRANSACTION PENALTIES PENALTY PENSION PENSIONS PERSONAL IDENTIFICATION PERSONAL IDENTIFICATION NUMBER POINT OF SALE POLICE STATION POSSESSION POST OFFICE POST OFFICES PRIVATE BANK PRIVATE BANKS PROFITABILITY PUBLIC FUNDS RECEIPT RECEIPT OF PAYMENT RECEIPTS RECEIVERS REGULATORY ENVIRONMENT REGULATORY FRAMEWORK REMITTANCES SAFETY NET SAFETY NETS SAVINGS SAVINGS ACCOUNT SAVINGS ACCOUNTS SERVICE PROVIDER SERVICE PROVIDERS SERVICE PROVISION SIGNATURE SMALL PAYMENTS SMART CARD SMART CARD READER SMART CARD TECHNOLOGY SMART CARDS SOCIAL DEVELOPMENT SOCIAL SECURITY STAKEHOLDER STAKEHOLDERS START-UP START-UP COSTS STATE BANK STATE BANKS SUBSCRIBER IDENTITY MODULE SUBSCRIBER IDENTITY MODULES TECHNICAL INFRASTRUCTURE TECHNOLOGICAL INFRASTRUCTURE TELECOMMUNICATION NETWORK TELECOMMUNICATIONS TRADITIONAL PAYMENTS TRANSACTION COSTS TRANSACTION INFORMATION TRANSACTION PROCESSING TRANSACTIONS COSTS TRANSFER OF FUNDS TRANSPARENCY TREASURY URBAN AREAS VILLAGE VULNERABLE CHILDREN VULNERABLE GROUPS WAGES WIRE TRANSFER WITHDRAWAL OF FUNDS Cash transfers have proliferated in the past decade as key policy instruments to tackle vulnerability and inequality. Payment mechanisms (PMs), the backbone of cash transfers, are the channels through which cash travels from the funding source to the hands of beneficiaries. In theory, the harmonization of payment flows in PMs with other program processes is critical to delivering the right benefit to the right people at the right time while minimizing costs. In reality, however, PMs tend to remain disconnected, rendering payments inefficient and plagued by error, fraud and corruption. In recent years, program operators, financial institutions, and technology innovators have developed strategies for streamlining payment flows. These innovations, if properly integrated into program management through a Management Information System (MIS) and supported by rigorous outreach, can not only promote efficiency and transparency but also ensure effectiveness. This paper provides a framework for integrating PMs within program management. It walks the reader through seven basic steps to process payments. It does so by articulating the flow of beneficiary information and funds from the point of beneficiary enrollment to payment reconciliation and grievance redress. It also looks at the framework through the lenses of different cash transfer interventions and the cases of Kenya, Rwanda, and Mexico. The paper concludes that to execute successful PMs it is key to: (i) integrate payments within an MIS; (ii) adopt a cost-effective mix of traditional and technology instruments suitable to the country's context in the short and long run; (iii) decentralize the control and accountability of service provision across government levels; (iv) understand the capacity and incentives of stakeholders; (v) provide manuals, training and information to key players; and (vi) enforce payment parameters and penalize their violation. 2014-04-07T16:07:48Z 2014-04-07T16:07:48Z 2013-08 http://documents.worldbank.org/curated/en/2013/08/18821509/improving-payment-mechanisms-cash-based-safety-net-programs http://hdl.handle.net/10986/17618 English en_US Social protection and labor discussion paper;no. 1305 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Working Paper |