Shift to e-payments saves Mexican government USD 1.2 bn annually

Wednesday 4 December 2013 10:57 CET | News

Electronic payments are saving the Mexican government more than a USD 1 billion, a recent study has revealed.

According to the study released by The Better Than Cash Alliance, a non-profit organisation backed by the Gates Foundation, corporations and others, the Mexican governments shift to electronic payments is producing USD 1.27 billion a year in savings.

The report revealed that dispersing federal funds through a centralised, electronic payment system has trimmed federal spending on wages, pensions, and social welfare payments by 3.3%.

Still, the payment system has yet to reach the vast majority of social welfare recipients. With less than 4% of those payments (USD 258.4 million) being dispersed electronically, its the category of payments ‘that has proven by far the most problematic to centralise’, according to the study.

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Keywords: Shift to e-payments, Mexican government, Mexico, savings, Better Than Cash Alliance, wages, pensions, social welfare payments
Categories: Payments & Commerce
Countries: World
This article is part of category

Payments & Commerce