Beneficiary Experience of Digital Government-to-Person Payments: Descriptive Findings from Bangladesh's Ministry of Social Welfare

IPA partnered with a2i (Aspire to Innovation of the Government of Bangladesh's ICT division) to understand the experience of 3 different groups of G2P transfer beneficiaries—old age allowance, widows and disabled groups—as the direct transfers convert from cash payments to a digitized process of direct deposit into bank accounts. Overall, the analysis indicates that beneficiaries are overwhelmingly satisfied with the switch to digital payments. While some challenges were reported during the disbursement process, beneficiaries expressed satisfaction with the digital payment system. As the study progressed, beneficiaries became more familiar with the process, evident by the reduced time spent during the withdrawal process for those receiving funds through mobile money agents compared to bank agents. Most beneficiaries were able to withdraw their allowance in a single trip and incurred withdrawal fees of no more than 1-2 percent of their allowance value. However, the study also found limited usage of official staff and channels when beneficiaries sought information or redress. Additionally, the impact of digital payments on financial inclusion, capacity, and health was limited, likely due to the vulnerability of the sample population.