Payments Building Block Scenarios beyond G2P and P2G
Overview
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The first versions of the Payment Building Block specifications considered G2P (Government to Person) and P2G (Person to Government) scenarios/use-cases. However, there are a wider set of use-cases that should be considered
There are also use-cases beyond those that a Government would not participate in, and these are not considered for this reason
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Synopsis�
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Scenario Definition
Government to Business (G2B)
The broad definition of this scenario is payments made to a business from a Government, these are assumed to be single currency. These can be narrowed down to a set of high-level areas:
Loans – Where the Government makes a payment to a business with an expectation of repayment in whole or in parts with or without interest.
Allowances- Where the Government makes a conditional payment to a business. E.g. Agriculture allowance.
Unconditional Payments- Where the Government makes an unconditional payment to a business. E.g. disaster relief.
Rebates and Repayments – Where the Government makes a payment based on payments previously having been received, e.g. tax refunds.
Payments for Services - Where the Government pays a business for a service or work done.
Financial Aid to NGOs - Where the Government pays an NGO financial aid
Subsidies - This could be considered similar to Allowances but may bring in a dimension of being ringfenced in what it can be spent on or which merchants it can be spent with. This may bring in an element of Vouchers for consideration.
Business to Government (B2G)
The broad definition of this scenario is payments made from a business to a Government. These can be narrowed down to a set of high-level areas:
Loan Repayments – Where the Business makes a repayment to a Government either in whole or in parts with or without interest.
Taxation – Where the Business makes a payment to the Government to cover a taxation obligation either one off or regular.
Services - Where the Business makes a payment to the Government for a service either one off or regular such as refuse collection.
Fines - Where the Business makes a payment to the Government to cover a fine
Customs Duties - Where a Business needs to pay customs duties (this scenario really opens up consideration of cross border and forex)
It may be important to consider cross-border/multi-currency payments depending on if the business is in the same country/region as the government.
Government to Government (G2G)
The broad definition of this scenario is payments made from a Government to a Government. These can be narrowed down to a set of high-level areas:
Department to Department – Payments between Government departments.
Authority to Authority – This could be national to local Government or between country Governments
Within these you have a number of potential complexities to consider:
Currency/Multi-currency
Invoice/Event Driven
Cross- Border
Conditionality
Cross Border payments – where a payment may cross a network/regulatory boundary regardless of currency
Multi-currency payments – where the payments cross currencies and some conversion needs to occur
Conditional/Non-Conditional payments – are payments requiring a condition check or not
Disbursement vs Invoiced payments – are payments in response to an invoice (including RTP)
Budgets/Allocations - Do we need to distinguish between them?
Revocability - Currently we consider all transactions irrevocable does this still apply
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Example Scenarios
Government to Business (G2B)
To be focused on specific examples
Insert Flow Diagram
Volunteers with real use-cases wanted
Notes from call 25/6 add in:
Need to be end to end flows e.g. all building blocks -->PBB 🡪 Wallet
Must have an end user.
Government to Business (G2B)
Mifos Submission: Example of a loan workflow.
Assumptions:
Covers:
Excludes:
Disclaimer - This represents a contribution of Mifos until adopted by the Payments Building Block
Government to Business (G2B)
Mifos Submission: Example of a Loan Workflow:
Key Callouts:
Disclaimer - This represents a contribution of Mifos until adopted by the Payments Building Block
Business to Government (B2G)
To be focused on specific examples
Insert Flow Diagram
Volunteers with real use-cases wanted
Government to Government (G2G)
To be focused on specific examples
Insert Flow Diagram
Volunteers with real use-cases wanted
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API to use-case mapping
Government to Business (G2B)
Explore if they need any different API calls. Assumption is that in most cases the Business could be defined as a beneficiary and that use-case complexities would more hit other BB’s such as Identity and Registration.
Loan functionality is probably a specific use-case as it’s a hybrid of G2B and B2G, may require some specification around loan interfaces if we want to consider in scope.
Business to Government (B2G)
Explore if they need any different API calls. Assumption is that in most cases the Business could be defined as a beneficiary and that use-case complexities would more hit other BB’s such as Identity and Registration.
Loan functionality is probably a specific use-case as it’s a hybrid of G2B and B2G, may require some specification around loan interfaces if we want to consider in scope.
Consider if always event driven e.g. can it fit the current P2G Invoice or RTP models.
Is there any complexity for a government to consider around calculating taxation that’s relevant for the BB gut says that’s for the taxation system.
Government to Government (G2G)
Highly complex and probably needs clear definition due to the impact of cross-border and multi-currency. This will segway nicely to alignment with Oscars workstream and links should be called out.
At some level we would need to consider if the BB is the right place. E.g. most of these transactions probably just fit in a class of one off or variable transactions that would normally be handled by the Governments Bank/Payment System. What benefit is there for them in using the Payments BB for orchestration.
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Conclusions
Conclusions
To
Be
Updated
To be updated once we have completed all mappings
Design considerations
Next steps for any identified gaps
To be updated once we have completed all mappings