Unlocking growth: How digital ID and payments are reshaping government services
By Visa
Research insights from Visa Government Solutions reveal the synergies of digital identity and payment in enhancing public services, as well as wider economic opportunities.
Digital identity plays a crucial role in a country’s digital infrastructure, serving as a foundational element for various digital services and interactions. Image: Canva
Beyond merely replacing physical cards, the impetus driving governments across the globe to transition towards digital identity (ID) frameworks is the enormous upside for improved public service delivery.
Through a verified digital ID issued by the government, citizens can unlock access to essential services and economic opportunities such as property loans, healthcare documents, tax records and education enrolment.
These everyday services, which previously required physical queues or applications, can now be accessed with just a few clicks on a screen.
Unlike commercially driven digital accounts, such as a Google ID, public digital IDs are government-backed digital credentials that provide a secure and trusted means for citizens to prove their identity online.
A recent research paper by Visa highlights the powerful synergy between national digital ID programmes and digital payments.
Payments as a catalyst for digital ID adoption
The inherent familiarity and frequency of payment transactions provide a natural pathway for citizens to adopt and utilise their digital identities.
In turn, digital ID systems can enhance payments by boosting user confidence and enabling efficient verification, thereby accelerating growth and adoption for both.
Frictionless access to services: Integrating payment capabilities with digital IDs streamlines transactions for government services, making it easier for citizens to pay taxes, fees, and access other services online.
Building trust: By incorporating digital ID into everyday payment processes, citizens become more comfortable and familiar with using their digital credentials, paving the way for broader adoption across other government services.
Expanding financial inclusion: Linking digital payments to national digital IDs can extend access to financial services for previously unbanked or underbanked populations, fostering greater financial inclusion.
Digital IDs for a digital age
For public servants across the Asia-Pacific region, the integration of national digital IDs with secure digital payment systems represents a marked leap forward in enhancing public service delivery.
Data from the UCL Institute for Innovation and Public Purpose’s DPI Mapping project recorded national digital ID programmes in 57 countries at the time of writing, and a further 93 countries engaged in digital payment programmes.
The synergy between digital IDs and payments is not just a technological advancement, but a strategic imperative for building more efficient and citizen-centric governance in the digital age.
This is the first of two articles on Visa Government Solutions’ digital identity and payments research insights. You can read the full research paper here.