## Fintech Payments in Public Financial Management: Benefits and Risks

_IMF Working Papers, February 3, 2023_

## Source details

**Canonical URL:** [Fintech Payments in Public Financial Management: Benefits and Risks](https://www.imf.org/en/publications/wp/issues/2023/02/03/fintech-payments-in-public-financial-management-benefits-and-risks-529100)

## Other formats

- [Markdown version](/en/publications/wp/issues/2023/02/03/fintech-payments-in-public-financial-management-benefits-and-risks-529100/index.md)
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## Bibliographic details
- Authors: Gerardo Uña, Alok Verma, Majid Bazarbash, Naomi N Griffin
- Published: February 3, 2023
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9798400232213.001

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### Summary overview
- Fintech payments leverage large digital platforms to fill gaps in the traditional payment system.
- They have increased access to payment services in several countries around the globe.
- New payment models are exposed to risks in their operating environment.
- The paper reviews the main fintech payment models and discusses operational and financial risks and challenges.
- The paper explores how public financial management (PFM), especially treasury payments and non-tax revenue collections, could benefit from fintech payments.
- Potential benefits for public finance include strengthening fiscal transparency, improving budget planning and execution, and upgrading cash management—conditional on strengthened public sector institutional and technological capacities and adequate risk mitigation.

### Fintech payment models reviewed
- Mobile money
- Internet-based fintech payment
- Digital money

### Operational and financial risks and integration challenges
- The paper discusses operational risks associated with new payment models.
- The paper discusses financial risks associated with new payment models.
- The paper discusses challenges fintech payment models face in their operating environment.
- The paper discusses challenges of integrating fintech payments into the public sector.

### Benefits for public financial management (PFM)
- Potential to strengthen fiscal transparency.
- Potential to improve budget planning and execution.
- Potential to upgrade cash management.
- Specific PFM areas highlighted: treasury payments and non-tax revenue collections.

### Examples and applications
- The paper provides examples of early fintech applications in different countries and regions (examples referenced by region and application context in the paper).

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## Content in this bundle

- **Working Paper**
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  - [Working Paper (PDF)](/-/media/files/publications/wp/2023/english/wpiea2023020-print-pdf.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/wp/issues/2023/02/03/fintech-payments-in-public-financial-management-benefits-and-risks-529100_