The quality of the mechanism used to deliver payments to beneficiaries in a Social Protection (SP) program has a direct bearing on program’s success or failure. The entire program can be undermined if payments do not reach the right people at the right time, in the right place and in the right form, in an efficient manner, and in the correct amount.
A well-designed and -implemented SP payment delivery mechanism can deliver cash or near cash transfers and serve as an entry point for financial inclusion and access to a range of financial services. It can also have positive—and negative—impacts on program funders, beneficiaries, and the wider community of non-beneficiaries.
The Social Protection Payments Delivery Mechanism Tool introduces the main elements of a high-quality payment mechanism for the delivery of cash or near cash SP transfers that are primarily targeted at poor and vulnerable populations.
The tool presents the main methods and different components for SP payments delivery, the main stakeholders and the role they play and how the financial and SP systems environment impacts SP payments. The tool proposes 3 main criteria to assess quality of payments: Accessibility, Robustness and Integration.