2011 Government E-Payments Adoption Ranking

    Executive summary
    In a relatively short time, advances in technology and business models based on electronic platforms have enabled many governments to increase the effi ciency and scope of their e-payment infrastructure. Submitting a tax return online, swiping an electronic card to pay for a bus journey or even,perhaps, receiving government health and/or social benefi ts directly in a bank account are now a way oflife 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. Indeed, an effective, inclusive e-payments system has become the core of what is being termed the “transformational approach” to government.
    Effective and efficient systems are dependent on not only a strong technological infrastructure but also strong connectivity between government, citizens and businesses.To understand the growth and evolution of government e-payments adoption, and to understand where countries stand in relation to one another, the Economist Intelligence Unit (EIU) created the Government E-Payments Adoption Ranking (GEAR) in 2007. The objective of the study is 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 study represents an expansion of this inquiry to rank 62 countries across seven categories and 37 indicators (see Category and indicator framework on pages 14 and 15).
    The top-line results of the 2011 GEAR study are summarised as follows:
    ● The top three performers—the US, the UK and Norway—offer a comprehensive e-payments landscape, strong policies and developed infrastructure. Led in 2011 by the US (fi rst), the UK(second) and Norway (third), the top-ranked countries demonstrate a high degree of connectivity and score well in all areas, from the availability of e-payments for businesses and citizens to the quality of infrastructure and social and economic drivers of e-payment uptake.
    ● The bottom three—Nigeria, Uganda and Ukraine—perform poorly in most of the categories.While each country has specifi c challenges, under-performance at this end of the spectrum serves to highlight the negative impact of inaction in e-payments adoption.
    ● Top performers typically have high GDP per capita. The study reveals a moderately strong correlation between high GDP per capita and overall score. This implies that an improvement in a country’s government e-payments adoption score will likely correlate with an increase in GDP per capita.There has been a marked improvement in technological infrastructure since 2007. Government epayments
    adoption stands to benefit from this given that connectivity—through a variety of devices—is the primary enabler of such payments. Recognising that investment in technological infrastructure can support economic growth, many developing countries are investing in Internet infrastructure,including installing technologies that allow individuals to access the Internet through mobile devices.
    The EIU expects to see the biggest gains in infrastructure development in emerging markets over the next few years.
    ● Overall, the countries in the study performed well in the following areas:
    ? Income tax payments
    ? Social security contributions
    ? Automotive payments
    ? Value-added/sales tax payments
    ? Mobile-phone subscriptions per 100 people
    ? Broadband penetration
    ? Number of automated teller machines (ATMs) per 10,000 people
    ● Overall areas where most countries need improvement are:
    ? Obtaining/paying for an ID card
    ? Requesting unemployment, workers’ compensation and welfare benefi ts
    ? Disbursement of loans
    ? Integrating the informal economy
    ● By region, the strongest performers are in the Americas, Western Europe and Asia. Within the top 20 countries, the US is ranked fi rst, Canada is ranked 16th and 10 are West European countries. South Korea and Singapore lead the four top-twenty Asian countries.
    ● The scope and depth of government payment services is closely related to the existence of enabling policies and a developed infrastructure. As demonstrated in the previous study, we see again in 2011 that the range and quality of government payment services is closely related to a country’s technological infrastructure, enabling policies and strength of social and economic factors.By examining some 37 indicators in seven broad areas, the study explores the e-payments landscape in
    each country. The results of this study will be presented in more detail in the following pages as we report on the fi ndings for each of the seven categories and explain the project methodology in more detail.