Delivering on the Potential of Digitized G2P

Government-to-person (G2P) payments hold promise for women’s economic empowerment through financial inclusion. With well-designed accounts delivered to financially capable consumers, beneficiaries are confident about the transactions they are conducting, motivated to save, able to make and receive payments, and eligible for loans. The financial inclusion community has been working for nearly a decade toward creating the conditions for the success of these payments in the lives of low-income beneficiaries, who are mostly women.

This new research offers insights on Indonesia’s Program Keluarga Harapan (PKH) program, the country’s largest conditional cash transfer. It offers evidence that if PKH beneficiaries were to receive the right information and have greater financial capability, a larger proportion of them would save, make payments, transfer funds, and borrow against their balance.