Technology is evolving the means of payment in the public administration

Technology is evolving the means of payment in the public administration

Communication and Information Technology have been a great ally in the evolution of various processes that impact on society and public administration, and in the means of payment this reality was no different. Over the centuries, many tools have been used for transactions between consumers and sellers. It began with the exchange of goods, the barter, used for more than 8 thousand years. The paper money would not have appeared until 1661. But if we look at recent history, taking the last 80 years as a reference, the evolution has been remarkably rapid.

In 1946 the Charge-It appears, which represents the first card; in 1961 the concept of wearable (wearable devices) appears; in 2008 the famous digital currencies (bitcoin) grow and in 2014 the use of mobile payments grows. In 2020 we are witnessing the birth of Pix (instant electronic payment), today one of the main forms of payment in Brazil. The success of Pix is ​​proven by the numbers. In just one year of implementation in Brazil, completed on November 16, 2021, according to the Central Bank, the system has already accounted for over 348 million registered keys and 1.6 billion transactions over this period. Looking at last year’s December numbers, it is possible to see that the instant payments system was responsible for the movement of R $ 622.4 million in the country, presenting a growth of 451% compared to January of the same year.

This public preference for using the Instant Payment System was felt by public bodies, which gradually began to implement Pix for the payment of taxes, which was a more practical and faster option for citizens. The Instituto das Cidades Inteligentes (ICI) has contributed to the development process of this reality for the citizens of Curitiba, allowing to pay in 2022 the urban and territorial property tax and the waste collection tax (IPTU-TCL) of the Municipality of Curitiba. at the beginning of April of that year, 23% of citizens opted for the Pix tool. Therefore, it is estimated that 18,688 transactions have been carried out since February 14, with R $ 3.9 million under management.

In this context, attention should be paid to the speed and consumer shopping experience. Because it is she who influences innovation through technology. The Pace Pulse study, conducted by FIS in collaboration with Ipsos, shows that 52% of respondents said they used online payments in 2021, 49% bought their merchandise via app and 40% opted for contactless payments ( Near Field Communication – NFC), demonstrating acceptance of the digital method for making purchases and payments, which denotes Brazilian flexibility in the use of new tools.

In this way, when analyzing the habits of use of payment means, we need to reflect on which direction this digital transformation should take, not only in the private sector, but also in the public administration, given that very soon people will no longer use paper money. and even the physical card. In Sweden, for example, paper money will be out of circulation by 2030. The main challenge is to provide consumers or citizens with agile and practical means of payment on the most diverse fronts, such as municipal taxes, public transport, revolving parking lots. , among others.

It is worth remembering that this analysis has no end in itself, because in a holistic way these innovations and advances stimulate the economy and the financial sustainability of public power itself, providing the conditions for providing quality services to society. There is therefore an important reflection for business executives, public and otherwise.

* Gilberto Stori Junior is a journalist (PUCPR), with an MBA in Strategic People Management (Uniandrade) and certification in Sales and Commercial Management applied to financial products and services (PUCRS). He works in the Services area of ​​the Instituto das Cidades Inteligentes (ICI).