Data sharing and taking NSER beyond BISP

F.Payments System

87. 
    The quality of payment mechanisms used to deliver cash or near cash transfers has a direct impact on the success or failure of SP programs. The ability of these programs to deliver cash transfer payments to the right people, at the right time, in the right place, in the right form, in an efficient manner, and in the correct amount is intrinsic to the success of the program.¹¹ A well-implemented SP payments mechanism can deliver transfers and also serve as an entry point for financial inclusion and access to a range of financial services.¹²
    
88. 
    The international experience with electronic payments is rich and varied. Most countries in Asia, including Bangladesh, China, India, Indonesia, Mongolia, and Philippines, provide electronic payments to beneficiaries, using bank accounts for the major SP programs. Internationally, the early adopters of electronic payments such as Mexico and Brazil are now using electronic payments not only for efficiency and timeliness but also to pave the way for financial inclusion of their beneficiaries. Mexico, for example, started to provide cash transfers to PROSPERA beneficiaries using a smart card in partnership with MasterCard. The program disburses cash to over 6.5 million beneficiaries (mostly women) who will be able for the first time to deposit funds, receive social payments, perform savings, and conduct other financial activities, supported by electronic payments that provide them with greater security, control, and convenience.¹³ In Brazil, Caixa pays Bolsa Familia beneficiaries using a debit/ATM card, and as part of the financial inclusion project launched in 2009, beneficiaries can open a simplified bank account in Caixa called ‘Caixa Easy Account’, which allows a limited number of financial services.¹⁴
    

89. 
    Pakistan compares well with the regional and international experience. Initially, BISP started the disbursements through the Pakistan Post using money order system in 2008. Subsequently, it conducted various pilots in 2010 (with NADRA using smart card) and in 2011 (with banks and telecoms using mobile banking). Currently, approximately 5.4 million beneficiaries receive cash transfers on a quarterly basis, and almost 93 percent of these payments are made using delivery channels driven by branchless banking infrastructure and transferred electronically using debit cards, smart cards, and mobiles phones. The electronic payments are handled by six financial institutions that have been awarded various districts for transferring cash transfer payments on behalf of BISP. The remainder 7 percent of the beneficiaries still receive payments using money orders through the Pakistan Post, which is the only viable solution in far-flung areas, due to the lack of mobile and banking systems infrastructure.