NIC Inc. [NASDAQ:EGOV]: The Go-To Payment Expert for Government Agencies

Mukesh Patel, President
Over the years, digital transformation has successfully established itself as a powerful arsenal in the enterprise arena. Galvanized by the impact of digitalization, NIC Inc. [NASDAQ:EGOV], a leading provider of digital government solutions and secure payment processing, sets out every day to improve interactions between governments and businesses and citizens they serve, by using technology. To materialize the idea, the firm introduced its subsidiary, NIC Services in 2006 to develop a comprehensive suite of payment offerings to enhance the capabilities of government agencies.

“Our payment solutions encompass the full lifecycle of payments, right from origination to distribution, said Mukesh Patel president of NIC Services. “It includes payment processing, integration, management, and reporting among others.” It comes as no surprise that modern-day enterprises have begun to prefer digital modes of payment, due to the user-friendly, cost-effective, and transparent paradigm that ensures maximum security. However, government agencies tend to face issues while transitioning from legacy payment systems to digitalized technologies. Processes such as automating manual tasks, incorporating attributes tied to payments to keep audit trails of the transaction, and absorbing credit card charges out of statutory fees or fines paid by citizens, are the hurdles that agencies struggle to overcome. Keeping that in mind, NIC Services framed a transaction fee based model making them a one-stop-shop to address the entire payment lifecycle.

The company’s frontend works with merchant service providers to manage setting up merchant IDs, deposit accounts, and descriptions of the end-users’ credit card statements. As such, the backend works on reporting and feeding data to the ERP systems on a daily basis. This process can help customers reconcile transactions in real-time or any required timeframe. The firm also provides customer service to end-users to resolve issues regarding charges or credit card statements via a toll-free number. Over 90 percent of the company’s solutions are funded under this transaction-based model, meaning government does not use appropriated budget dollars to pay for NIC’s services.


Our payment solutions encompass the full lifecycle of payments, right from origination to distribution


Rather, end-users—citizens and businesses—are charged a small transaction fee that allows them to interact with their agencies on a 24/7 basis over any device and platform. Hosted in a private cloud at two Tier 4 data centers, the firm’s PCI-DSS level-one payment solutions are audited every year by a third-party ensuring the highest level of security and compliance.

Recently, NIC Services rolled out new payment processing solutions such as Prompt Pay, OnTheGo and Gov2Go Pay. Prompt Pay allows the customer to pay their government-related payments using a mobile device. Once citizens provide their mobile number to the cashier, a link is shared via a text message. The link includes information such as the amount due and services selected, enabling the citizen to complete the payment by simply providing payment details. Similarly, OnTheGo helps end-users make payments using mobile devices from remote areas or even without internet connectivity. The system records their transaction and processes once the device detects a network.

One of the latest solutions launched by NIC Services is Gov2Go Pay—a citizen-centric digital wallet. Once the citizen creates a user ID and password and enters their credit card information, they can use the stored information to make any type of secure payment to a respective agency. The one-click payment solution is available on wearable devices like Apple Watch and smart speakers like Amazon Echo and Google Home making it easily accessible to the end user.

“In the future, we will continue to help the government and its citizens, as it is the driving force behind everything we do,” said Patel.

Company
NIC Inc. [NASDAQ:EGOV]

Headquarters
Olathe, KS

Management
Mukesh Patel, President

Description
A digital payment solutions provider focused on serving federal, state, and local government agencies

NIC Inc. [NASDAQ:EGOV]