Government Disbursements Open New Paths to Financial Inclusion

Government payments rarely get discussed as financial infrastructure. They’re usually treated as administrative outputs. Benefits are approved, refunds are issued and claims are processed. For millions of households, however, the moment money actually arrives can determine whether they pay a bill on time, avoid borrowing or stay connected to everyday economic activity.

The PYMNTS Intelligence report “The Power of Now: Moving Money at the Speed of Life,” a collaboration with Visa Direct, found that government disbursements may be emerging as an overlooked lever in financial inclusion.

Government disbursements span a range of consumer payments issued by federal, state and local entities, including tax refunds, disaster relief, juror and election compensation, unclaimed property, and other public payouts.

The findings suggested that the challenge is not simply whether funds are approved. It is whether recipients can actually use them when they need them.

Government disbursement delivery remains fragmented across rails and methods. Tax refunds continue to be tied to traditional account-based transfers, while other payment types still rely on paper checks and slow clearing processes. Consumers often have limited say in how they receive money, creating a disconnect between how urgently it is needed and how quickly it becomes available.

The report revealed that 4 in 10 recipients reported having few or no options in how they received their most recent government payment, while 36% said they needed access to that money immediately, within hours or on the same day.

Disbursements Equal Household Liquidity

The disbursements are being used as liquidity tools.

Among recipients experiencing delays, 1 in 5 expected financial stress or anxiety, while 18% said they would postpone necessities, and another 18% said they would delay paying essential bills. Meanwhile, 15% said they would turn to credit cards or overdrafts to bridge the gap.

Financial inclusion increasingly extends beyond access to an account. It is becoming tied to access to usable money.

A delayed tax refund affects households differently than a delayed investment withdrawal. Disaster assistance arriving a week late can mean temporary housing costs move onto revolving credit. A delayed public benefit payment can trigger fees, deferred purchases or cash flow disruptions that ripple across a household budget, reducing access to credit and ultimately the wider financial system.

The report found that 35% of government recipients encountered at least one payment issue during the past year, led by delayed or lost checks, uncertainty over availability and waiting for funds to clear.

Financial inclusion should not be treated as a single consumer category.

Recipients relying on government disbursements often face different constraints depending on the purpose and urgency of the payment.

Households receiving disaster relief operate under compressed timelines and immediate spending needs. Tax refund recipients may use that money for debt reduction, planned purchases or budget stabilization. Consumers receiving small government payments may value predictability more than immediacy.

The common thread is optionality. That distinction may become increasingly important as governments modernize payment infrastructure.

The report revealed that 83% of recipients said secure real-time government payouts (e.g., card-based payouts) would improve their finances, while 75% said smooth, on-time delivery improves their perception of government performance.

Faster government disbursements will not solve broader economic inequality. For households managing tight budgets, however, that difference can determine whether public support functions as intended. It’s not simply a payment; it’s participation in the economy at large.

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