What would a fully digital government payment system look like — and why does it matter?
For citizens, government payments often mean waiting: waiting for tax refunds, waiting for stimulus checks, waiting for benefits to arrive. The delays for these government payment are largely the result of outdated systems and inefficient processes. Consider this: 55% of state and local officials describe their payment technology as “moderately capable with room for improvement,” while 10% admit that their systems are rudimentary or manual and have significant limitations.
This inefficiency has real consequences. In 2024, the IRS reported a backlog of 500,000 unresolved identity theft cases, with an average resolution time exceeding 22 months. These cases disproportionately affect low-income individuals, leaving them in financial limbo.
The good news? Governments are starting to modernize their payments. Digital disbursement tools are transforming payment systems, delivering funds faster and with fewer errors. In New York, for example, a new digital portal for the School Tax Relief (STAR) program allows homeowners to receive tax rebates via direct deposit, reducing fraud risks and cutting delays.
The shift toward digital payments is no longer a question of if but when. Explore the full report to see how governments are making this transformation.
The “Money Mobility Tracker®,” a collaboration with Ingo Payments, explores how digital and instant payments can modernize government disbursements, ensuring timely and secure delivery of funds to rightful recipients while reducing fraud and inefficiencies.
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