Why digital payments are important in a smart city?
                     Why digital 
payments are 
important in a 
smart city?
The famed British Zoologist Desmond Morris once said 
something which beautifully sums up the story of current cities 
across the world. He said, “The city is not a concrete jungle, it 
is a human zoo”. Today, almost 55% of the world population 
lives in urban cities and this proportion is all set to go as high as 
68% by the year 2050.
 What is a smart city?
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services. and to drive economic growth.
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 What is the role of payments in a 
smart city?
Payments are a significant component of smart cities since it features in the 
majority of basic services offered to the citizens. All these services form the core 
of the economic activity which includes business procurement, salaries, 
consumer spending, and tax collection.
Nowadays, more and more cities are realizing the significance of smart 
payment technology which plays a crucial role in achieving the vision of a 
smart city.
Digital payments can play a major role in improving the payments 
ecosystem across departments with various use cases that can 
cover multiple C2G (Citizen to Government payments) like 
electricity, toll & transit, taxi, water, education, tourists places, 
social services, healthcare, CFC centres, penalties, and public 
convenience.
Similarly, it can also cover multiple G2C (Government to Citizen) 
payments like monetary awards, senior citizens benefit, 
subsidies, and scholarships. These use cases ensure 
enhanced efficiency and security by reducing the dependency on 
cash.
 Challenges Internal challenges
associated with 

digital  The current infrastructure in the government bodies of many developing nations for collections 
payments in and payments is mainly focused on cheque and cash thus making it inadequately equipped for 
accepting digital payments.
smart cities
 Digitizing existing data records is a challenge in 
External challenges itself which is made tougher via siloed businesses 
and with the limited information sharing across 
channels, divisions, and departments.
 Low internet connectivity, 
penetration, and poor 
 The absence of a unified strategic 
infrastructure is adversely affecting vision is causing the payments 
the  digitization effort to be less effective.
customer experience for online tra
nsactions
 Due to inadeq.uate training of 
operational staff to manage 
seamless delivery of payment 
services and handling 
customers with special needs 
have resulted in customers 
having low trust in digital or 
technology-based payments.
 Digital payment use cases 
in smart cities
 Many corporations around the world are now looking to establish a sustainable cashless ecosystem. 
HowLeovrerm, a sip wseu malready discussed there are few major challenges that can prove to be a major roadblock.
 These roadblocks can be eliminated by boosting the adoption of digital payments. Below are a few 
examples in the form of the use cases as to how you can overcome these roadblocks.
 Direct benefits One city – one 
transfer based on card
Aadhaar
 Few municipal One city – one card 
corporations in India have system is based on the 
begun to transfer various idea in which the 
benefits to their citizens, 
 Citizen citizens can use a 
school children, and  Doorstep 
facilitation prepaid card to make 
corporation staff on the 
centre solutions payments across 
basis of their Aadhaar 
 multiple services like 
 Many corporations (which is an identification 
Few of the 
government-owned 
around the world are now and authentication corporations have 
taking firm steps towards number in India) loaded started doorstep activities, municipal 
digitizing their ward on a prepaid card. services for tax taxes, transport, and 
offices. Not only this, collection, where an many more.
web-based payments, officer digitally 
mobile apps, and POS collects the tax at the 
terminals have been 
citizen’s doorsteps at 
deployed by these 
corporations to make tax the time and date 
collection cashless. selected by the 
citizens themselves.
 Unified payments 
 What are the instrument
emerging 
digital payment 
solutions for  A digital payment mode which is common for making payments at 
smart cities? all public transport like local 
trains, metros, and buses.
 The above mentioned are not the only 
use-cases of digital payments in smart  Health card which enables 
cities. Digital payments have a massive citizens to access free 
potential that smart cities can leverage medical benefits without 
from. In fact, there are many emerging  facing any hassles.
digital payment solution and initiatives 
for smart cities. Let’s have a look at few 
 A common instrument that can be 
of those:
leveraged to transfer benefits to 
women, school children, others for 
welfare schemes.
THANK 
          
YOU