Inside view

Local authorities haven't always been quick to take up the gauntlet of e-payments. For a long time, we have made our way individually, working out unique solutions in isolation - with no clear idea of the cost versus benefits, or even of what other councils had successfully attempted. E-payments, for all their vast promise in terms of efficiencies and savings, were alarmingly unknown.

That time is at an end. The results will soon available for the first part of the ODPM's e-Pay national project, which examines current practices and major barriers. The project is led by Bristol city council, with Hammersmith and Fulham council leading the way on two workstreams.

E-payments is big business. The value of e-payments revenue has almost tripled among the surveyed councils over the past three years, with a small but rapidly growing number taking between ?5m and ?20m a year.

These results give us the first clear idea of the current state of play in e-payments in local government - as in online payment, smartcard adoption, electronic direct debiting, mobile phone payments etc. Wherever the public sector goes, with its massive infrastructure, big business is likely to follow.

Much of the survey confirms gut instinct. The internet is the most widely adopted e-payment channel, with 79% of authorities offering this option - still leaving around a fifth of councils without online payment facilities. To date, councils have made little use of other options like mobile phone, kiosks and digital television. The reality is councils are deploying "traditional" e-payments channels such as telephone and internet first, and then adding more innovative channels such as mobile phone and smartcards later.

While 93% of responding councils are taking some form of electronic payments, a worrying 7% still accept only cash and cheques. Clearly, there's a great deal of work to be done in order to hit 2005 e-government targets.

Those expecting the smartcard revolution may not have long to wait, as there's strong evidence they are finally making headway. Though only a small percentage of councils have a smartcard system in place, around one-third intend to implement one within two or three years. Look to see an explosion in their use in the near future.

Meanwhile, for rural councils there is good news. The project analyses a number of intermediary types, identifying those offering large savings given geographical challenges.

However, IT heads who feel they've been labouring alone by a very dim light take note, as this is a good deal more than a survey - it amounts to a road-map for adopting e-payments solutions, based on real-world council experiences.
How valuable is it to such a head to know the costs/ benefits of a particular e-payment stream prior to choosing it?

The benefits for councils across England are clear. There is still vast room for expansion of e-payment services, even among councils with large e-payments revenues. In these Gershon-conscious times, this may just prove to be the prize that finally drives e-payments into the mainstream.

There's no need to go it alone. Local authority staff can share the results of the e-Pay national project at an event on November 16 at Church House, Westminster, London. Find out more at www.e-payments.org.uk.

· Julian Hubbersgilt is the workstream manager, e-Pay national project, at Hammersmith and Fulham council