A new report from World Bank-based microfinance group CGAP and the UK's Department for International Development (DFID) shows that more than 170 million poor people worldwide receive regular payments from their governments, but the potential to use these payments to increase financial inclusion is largely untapped.

"Banking the Poor via G2P Payments" shows that despite the pioneering programmes in Brazil, India, Mexico and South Africa, fewer than one-quarter of government-to-person (G2P) payments to the poor worldwide land in a financially inclusive account, i.e. one that enables recipients to store funds, make or receive payments from other people in the financial system, and is accessible, in terms of cost and distance. "Often these transfers are made in cash or with a debit card that can only be used to withdraw funds. By using payments on a card, cell phone or a no frills bank account, governments could empower people with access to financial services well beyond the receipt of a government payment," said CGAP CEO Elizabeth Littlefield.