Why are governments moving toward digital payments?

Reason	Finding	Example
Cost saving	Moving from cash and check to digital payments significantly reduces cost to governments.	In Mexico, estimated that the Mexican government had saved $1.3 billion, or 3.3% p.a.
Transparency	Digital payments improve traceability which reduces leakage of government payments to fraudulent or incorrect recipients. See further Digitizing improves transparency and promotes formalization.	In India, making social security payments digitally results in a 47% reduction in the incidence of bribe demands compared with cash payments.
Speed and security	Digital payments can be instantaneous, reducing the time the payee must wait to receive. Reducing the use of cash also improves security for recipients.	In the US, moving from cash and check to electronic benefit payments is associated with a 10% reduction of the crime rate.
Financial inclusion	Digital government payments can be the first entry point additional developmental reasons. such as reducing poverty for unbanked people, supporting the usage of new services for additional reasons	In Mexico, that accounts opened to receive social transfers led to increased frequency of receiving remittances also through formal channels.
Economic development	More digital payments leads to an increase in GDP of between 0.3% (developed) and 0.8% (emerging).	According to Moody report, 56 countries over five years reported this finding.

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