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Electronic payment mechanisms in social security: Extending the reach of benefit and contribution transactions
Author(s) -
Waller Paul
Publication year - 2017
Publication title -
international social security review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.349
H-Index - 28
eISSN - 1468-246X
pISSN - 0020-871X
DOI - 10.1111/issr.12133
Subject(s) - payment , business , modalities , social security , payment card , service (business) , transfer payment , internet privacy , computer security , environmental economics , computer science , economics , marketing , finance , market economy , social science , sociology , welfare
More often than not, the existing modes of contribution collection and benefit payment of social security organizations are adapted to the collective arrangements that characterize employer‐employee relationships. Extending coverage to individuals in difficult‐to‐reach groups, however, may require new modalities of service that can cope with many separate, secure transactions rather than a few bulk data transfers between organizations. Recent developments in electronic payment show its wide applicability in enabling huge volumes of such individual transactions. It is in this light that the article explores the potentials of this technology and identifies possible arrangements through which electronic payments could surmount barriers that stand in the way of covering difficult‐to‐reach groups. The high level of mobile phone penetration on a global scale augurs well for using e‐payment mechanisms to collect social security contributions and to deliver social security benefits and services. A generic model is used to describe the requisite elements to implement electronic payments in social protection programmes. Based on empirical evidence of current social protection practices from around the world, five scenarios are presented to describe possible configurations for electronic payment, from the simplest to the most sophisticated. The broader objective is to contribute in a practical manner to the international commitment to extend social protection to all, as defined by the 2030 Sustainable Development Goals.