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05 June 2012

The latest Government E-Payments Adoption Ranking has been released

Moving to a broad-based electronic payments regime offers the developing countries an antidote to issues like financial exclusion, rampant waste and corruption in states social and institutional cash transfers and the incidence of hidden or undocumented economy.

The latest Government E-Payments Adoption Ranking (GEAR) released by the Economist Intelligence Unit (EIU) highlights just that. The study has aimed to measure the extent to which countries provide key government payment services on electronic platforms and the underlying factors that affect government e-payments adoption.

The 2011 GEAR included 62 countries, spanning 6 continents, representing approximately 81 percent of global population and 94 percent of global GDP. The countries have been ranked across 7 categories and 37 indicators. The US, the UK and Norway top the list owing to their comprehensive e-payments landscape, strong policies and developed infrastructure. Nigeria, Uganda and Ukraine are on the bottom of the list, indicating inaction in e-payments adoption. The study reveals a healthy correlation of rankings with high GDP per capita.

The study links the range and quality of government payment services to a countrys technological infrastructure, enabling policies and strength of social and economic factors. In fact, it equates an effective and inclusive e-payments system as the core of the "transformational approach" to government. However, just the prevalence of strong technological infrastructure wouldn cut it; connectivity between government, citizens and businesses is cited as crucial for adoption. "Submitting a tax return online, swiping an electronic card to pay for a bus journey or even, perhaps, receiving government health and/or social benefits directly in a bank account are now a way of life in many countries. The ability of governments to offer these services via electronic platforms benefits all parties in the form of reduced costs and increased access," notes the report.


Ukraine has dropped in GEAR during last 5 years from 42th to 60th position and is placed in 4th category ("improvements are needed").

Overall score of Ukraine is equal only to 28.6 from possible 100.


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