CGAP commissioned MSC to conduct a study to assess the different pricing mechanisms for the distribution of digital transfers.

MSC analyzed the different transfer models that a G2P program designer could adopt. MSC also offered examples of how different G2P programs distribute their cash transfers to understand the distribution model’s cost centers and ways to reduce these costs while maximizing the choice of providers for recipients.

MSC analyzed various payments models to explore how beneficiaries receive payments from the government in the context of digital social protection. Such models were assessed through single entity state-owned or public sector banks, single entity commercial or private sector banks, and multi-entity banks or telco-financial models. We developed a pricing tool to guide the efforts of program designers and help them determine the distribution model based on different cost areas and actions to reduce these costs. Further, we developed a dissemination strategy that included recommendations for program designers on how to package lessons for delivery and terminologies associated with payments in digital social protection.

The project involved an extensive analysis of different social protection programs in Asia and Africa. The project formulated a reference for social program managers by analyzing current approaches to distribute transfers through continuous discussions between CGAP and the MSC team.