Government Technology

According to the findings of the government’s recent Operational Efficiency Programme (OEP) report, there is scope for £15 billion in annual efficiency savings in the areas of back office operations and IT, collaborative procurement, asset management and sales, property and local incentives and empowerment. The more efficient use of payments can form an integral part of these savings.
    
The report has stated that the government has already made significant progress in ensuring adherence to payment terms but much more can be achieved. Securing efficiency and value for money is an ongoing process for the public sector; it is never complete, especially in the current climate of economic turbulence. Visa’s solutions are constantly evolving to meet these changing requirements. If efficiency savings are realised then improvements can still be made to public services; they need not suffer unduly because of the recession.

Government Procurement Card
Government Procurement Card (GPC Visa) is a proven solution in the drive for efficiency. In 2008 alone, GPC Visa generated annual efficiency savings of £165 million, bringing cumulative savings to £674 million since the solution was launched in 1997. Savings are broadly accrued on a transactional basis, so more transactions result in greater savings, making it especially important for low value purchases.
    
One way existing GPC users can drive further savings is through the use of payment thresholds. This means that value limits are set on payments and diverting as many payments as possible under that limit to GPC Visa. Adopting a threshold policy has several benefits, including decreasing the time spent by accounts departments manually inputting data, and reducing the amount of late payments to manage.
    
GPC Visa cardholders can also access eSolutions tools to manage their transactions online, automatically allocate transactions to costings data, and review and approve individual transactions. The service also allows users to amend, add or split transactional data, and generate reports based on this information.

Visa Prepaid
Following on from the success of GPC, Visa Prepaid has the potential to be a significant payment solution for public sector organisations looking to streamline their processes. It is already used by governments around the world, and has now started to be rolled out more widely in the UK.
    
Prepaid offers benefits for a number of stakeholders. It can be used by employers to distribute salary payments or reimburse expenses to a large number of employees, or make bonus or incentive payments. This is particularly effective for those who work on a temporary or freelance basis. In addition, administrators can use the solution to minimise or even replace petty cash payments, or provide travelling expenses.
    
The area with perhaps the most potential for Prepaid is for the distribution of benefits, helping to foster social inclusion for those who are vulnerable and have limited access to traditional banking services. It can be used to distribute direct payments, child and housing benefits and more. Disposable cards can be used one-off transactions or reloadable cards can be issued to those entitled to ongoing payments.
    
In addition to the flexibility and security offered by this solution, it can reduce administration and cash handling costs, as well as automating processes and introducing electronic controls, bringing significant efficiency benefits. The card also has a complete audit trail and activity reports can be made available to both issuers and cardholders, facilitating supervision and control.

New innovations
In the near future, Visa Prepaid cards could be produced in just two and a half minutes through Visa’s new instant issuance machines. These ATM like kiosks can be placed into benefits offices that provide prepaid cards; helping to speed up and automate the payments process even further.
    
Other emerging innovations include Visa CodeSure; a new type of secure payment card with a built-in numeric screen that is currently being piloted by banks for payments, online banking, and Virtual Private Network access. There is an opportunity to extend this technology beyond financial services, and for government departments this solution for accessing government services, payment of taxes and application processes. This will add another layer of security to existing measures.
    
All these payment tools can make a significant difference in the government’s search for savings. Improved efficiency can form a cornerstone to resurgence.