Thinking Bigger: New Report Reveals 2025 Trends for Digital Government

PayIt’s annual survey of government leaders from across North America highlights a sharpened focus on business outcomes alongside resident satisfaction

Kansas City, Missouri, March 18, 2025 — Digitizing resident experiences creates a mutual dividend for agencies and residents that compounds over time, new research finds. PayIt, the leader in digital customer experience solutions with integrated payments for state, local, and provincial governments, surveyed 600 government leaders from across North America to reveal how they contend with the tradeoffs and challenges of modernization, how fast they are moving on AI, and how well they think they stack up against their peers.

The survey asked both IT and line-of-business leaders in state and local governments about the state of modernization and digital payments in their organizations. While budget limitations and IT capacity challenges continue to require ruthless prioritization, respondents reported greater emphasis on business outcomes such as shortened time to revenue, streamlined reconciliation processes, and reduced support call volume as key benefits they are targeting.

“Government leaders are getting more bullish on the potential of digital to improve operating efficiency,” said Kelly Davis-Felner, chief marketing officer at PayIt. “Over the past three years, we’ve seen growing recognition that delivering great digital experiences for residents unlocks huge benefits for the agency’s operations. They are bringing that lens to their discussions about which modernization projects to prioritize.”

The report revealed key insights, including:

• Fragmented payment systems are costing agencies time and money. After payments security and compliance, respondents cited fragmented payment systems as their top concern in bill collection. Moving to a single platform consolidates transactions, resulting in frictionless money movement and improving the resident experience by bringing all government transactions into one account.
• Agencies are implementing AI faster than expected. Although government leaders have expressed caution about AI, a majority have deployed AI solutions or plan to do so soon. 59% of respondents said they’re currently using AI tools for back-office processes, and 58% for resident-facing processes. 
• The self-rated quality of digital services doesn’t necessarily align with adoption rates. Almost 70% of respondents rated their digital services as better than those offered by peers in similarly sized jurisdictions. However, the 11% who self-rated as lagging further behind report both the highest digital adoption today and higher adoption targets for the future.

Explore these insights further, including quotes from respondents and full breakdowns of responses, in PayIt’s 2025 Digital Government Adoption Index.

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About PayIt

PayIt enables state and local government agencies to deliver a great resident payments experience that accelerates the shift to digital. Agencies choose PayIt to better achieve their mission through improved operational efficiency, customer support, and resident satisfaction. Our solutions span property tax, courts, utilities, DMV, outdoors, and more. PayIt provides a single resident profile across agencies and jurisdictions, integrates into back-office and adjacent systems, and our team helps clients drive adoption of digital channels. Serving more than 100 million residents in North America, we have received awards from Fast Company and StateScoop, and have been listed in the GovTech 100 for 9 years and counting.

PayIt: Smarter for government. Easier for everyone.

Media Contact

Cara Schwartzkopf

Marketing Communications Manager

PayIt

[email protected]