In a lot of my conversations with governments, it wasn't the ministry that called us first. It was the funder.
That tells you most of what you need to know about how DPI gets paid for.
The short answer: digital public infrastructure is usually funded by a mix of national government budgets and development finance, mainly loans and grants from development banks such as the World Bank and the Asian Development Bank, plus philanthropic and bilateral donors. Payment systems are sometimes funded by banks or central banks. Once running, DPI is paid for through government subsidy, user fees or a mix of both.
Key facts:
- The World Bank's Global DPI programme supports over 80 countries (DIAL)
- A national P2P/P2M payment system can be funded by a consortium of banks, or by the central bank if it runs the system (CDPI)
- CDPI's DPI-as-a-packaged-solution pilots can draw on private philanthropic funding (CDPI)
- DPI can be priced to users at zero, on cost recovery, or as a hybrid (DIAL)
Who pays for DPI?
| Funder | Typical role | Examples |
|---|---|---|
| National government | Owns the system, funds operations, co-finances the build | Ministry budgets, national ID authorities |
| Development banks | Loans and grants for large national programmes | World Bank, Asian Development Bank |
| Regional bodies | Technical and financial support for member countries | Pacific Community (SPC) |
| Philanthropy and bilateral donors | Pilots, DPG development, catalytic funding | Foundations, development agencies |
| Banks and central banks | Payment infrastructure | Payment switches, central bank-run systems |
On the DPG side, the products themselves are often donor-backed too. OpenCRVS, for example, secured multi-year funding in 2021 from NORAD, Plan International Australia and Vital Strategies to establish a permanent home.
Why funders drive so many DPI decisions
Development funders see DPI across dozens of countries at once. They've watched what works, and what lock-in costs. So they're often the biggest advocates of the DPI and DPG approach in the room, sometimes more than the government itself.
In practice, that means:
- Funders make introductions. They regularly bring DPG teams into conversations with countries.
- Funding shapes scope. The budget often starts from the funder's envelope, not the ministry's cost model.
- Funders shape procurement. Their rules influence how tenders are written and who can bid.
My take: if you're a government, treat your funder as a partner in design, not just a cheque. If you're an SI or a DPG, know which funders are active in your target countries. They know where the next programme is before anyone else does.
How is DPI paid for once it's running?
Building DPI is a one-off. Running it is forever. DIAL, citing David Porteous and Rafe Mazer, sets out three pricing models:
- Zero price: free to users, subsidised by government or cross-subsidised from other revenue
- Cost recovery: users, often businesses, pay fees that cover running costs
- Hybrid: a mix of subsidy and fees
Each choice has consequences. Charge banks for ID verification and you fund the system, but you might slow adoption. Make everything free and you depend on the finance ministry every single year.
The funding gap nobody plans for
Implementation money is relatively easy to find. It's a project with a start, an end and a launch event.
The harder money is for the years after: support, hosting, security and upgrades. That's why there's a strong push across the DPG community towards sustainability, making sure systems can be run and improved for decades, not just launched.
If you're planning a programme, put the long-term running costs into the funding conversation at the start. I cover what that includes in what happens after go-live.
Is money flowing into DPI?
More than ever. Global campaigns like 50-in-5 have brought serious donor backing and new money into the sector that simply wasn't there before. That has sped up execution, and the halo effect benefits the whole ecosystem, DPI and DPGs alike. More in my piece on the 50-in-5 campaign.
Frequently asked questions
Who funds digital public infrastructure? Usually national governments together with development banks, regional bodies and philanthropic donors.
Does the World Bank fund DPI? Yes. Its Global DPI programme supports over 80 countries.
How does DPI pay for itself? Through government subsidy, user fees or a mix of both, alongside the wider economic benefits it creates.
Who funds digital public goods? Many DPGs are backed by philanthropic and bilateral donors, with implementation often funded by countries and development banks.
Sources
- We need an open conversation about the costs of DPI, Digital Impact Alliance
- How much does it cost to build DPI?, Centre for Digital Public Infrastructure
- Our story, OpenCRVS
Structuring funding for a DPI or DPG programme? Let's talk.
