Unlocking Digital Potential: How DPI Shapes the Future of Services and Inclusion

The World Bank's Digital Public Infrastructure and Development report highlights how Digital Public Infrastructure (DPI)—including digital identity, payments, and data-sharing systems—can drive inclusive digital transformation, economic growth, and innovation while ensuring privacy, security, and accessibility. It emphasizes governance, interoperability, and digital inclusion as key to maximizing DPI's impact and bridging the global digital divide.

The World Bank’s Digital Public Infrastructure and Development white paper, developed in collaboration with research institutes such as the Center for Digital Public Infrastructure (CDPI), the Digital Public Goods Alliance (DPGA), and the Global Partnership for Financial Inclusion (GPFI), lays out a transformative vision for leveraging Digital Public Infrastructure (DPI) as a tool for safe, inclusive, and scalable digital transformation. DPI, which includes digital identity, electronic signatures, digital payments, and data-sharing platforms, serves as a foundational building block that accelerates digitalization across economies, fosters innovation, and improves service delivery for both governments and private enterprises. Unlike traditional fragmented digitalization efforts, DPI establishes shared, reusable infrastructure that multiple sectors can utilize, reducing redundancy, increasing efficiency, and lowering costs. The paper highlights that countries with well-developed DPI, such as India, Estonia, and Brazil, were able to respond swiftly and efficiently to crises like the COVID-19 pandemic, delivering emergency relief and social services with unprecedented speed.

Unlocking the Potential of Digital Identity and Electronic Signatures

A core component of DPI is digital identity and electronic signatures, which provide secure authentication, identity verification, and legally valid digital transactions. Countries like Sweden, Singapore, and India have successfully implemented digital identity systems such as BankID, SingPass, and Aadhaar, allowing users to access a range of government, financial, and private sector services with a single credential. These digital identities are increasingly being integrated with electronic signatures, ensuring that contracts, agreements, and transactions carried out digitally are legally recognized and secure. In Europe, the eIDAS regulation has enabled cross-border interoperability of digital identities and signatures, paving the way for seamless digital transactions across 27 EU member states. The Maldives' eFaas digital identity system further demonstrates how a well-designed DPI can provide access to over 128 digital services, spanning healthcare, housing, and finance, reducing bureaucratic inefficiencies and improving governance. However, digital identity adoption remains a challenge in many developing countries due to low digital literacy, weak infrastructure, and lack of regulatory frameworks, highlighting the need for sustained investment in inclusive and accessible solutions.

Fast Payment Systems: Driving Financial Inclusion and Innovation

One of the most impactful DPI components is digital payments, which enable fast, cashless, and interoperable financial transactions across individuals, businesses, and governments. The rise of Fast Payment Systems (FPS) such as Unified Payments Interface (UPI) in India, Pix in Brazil, and PromptPay in Thailand has revolutionized the way people send and receive money. These systems reduce transaction costs, improve efficiency, and drive financial inclusion, particularly for underbanked populations. In Brazil, Pix processed over 112 transactions per capita annually, making digital payments more accessible than ever before. In India, UPI facilitated 81% of all digital payments, proving its effectiveness in boosting economic participation. Governments worldwide are leveraging DPI to enhance social welfare disbursements, tax collections, and public service payments, ensuring funds reach beneficiaries instantly and without leakages. However, despite these advancements, cybersecurity risks and fraud remain significant challenges in digital payments, necessitating robust encryption, multi-factor authentication, and fraud prevention mechanisms to build public trust and ensure financial security.

Data Sharing and Governance: Balancing Privacy and Accessibility

Data-sharing platforms form another essential pillar of DPI, enabling trusted and consent-based data exchange between individuals, businesses, and governments. Countries such as Estonia (X-Road) and India (DEPA - Data Empowerment and Protection Architecture) have pioneered secure, privacy-conscious data-sharing models that allow users to control how their data is accessed and utilized. The European Union’s eIDAS framework and upcoming Digital Wallet (EUDI) are set to expand cross-border data portability, enhancing seamless access to public and private services across multiple jurisdictions. However, effective data governance is critical to prevent data misuse, unauthorized surveillance, and privacy violations. Many nations still lack comprehensive data protection laws, which are essential for safeguarding personal information and ensuring compliance with global standards like the EU GDPR. Without robust legal and institutional frameworks, DPI systems risk becoming instruments of surveillance rather than empowerment, making governance a central consideration in building a resilient DPI ecosystem.

Bridging the Digital Divide: Ensuring Inclusivity and Security

Despite its vast potential, DPI faces significant challenges, particularly in low-income and rural areas where digital access remains limited. The digital divide—caused by poor connectivity, low digital literacy, and financial barriers prevents millions from benefiting from DPI-enabled services. To bridge this gap, governments must invest in digital literacy programs, mobile-friendly DPI solutions, and hybrid service delivery models that integrate offline accessibility. Countries like Ukraine and Bangladesh have launched nationwide digital literacy campaigns to educate citizens on securely using digital identities, e-payments, and online services. In Mozambique’s conflict-affected Cabo Delgado province, mobile registration brigades were set up to reissue identity documents to over 75,000 displaced individuals, ensuring their access to social services, education, and employment opportunities. Another major challenge is cybersecurity, as DPI systems are increasingly vulnerable to hacking, fraud, and systemic cyberattacks. Implementing end-to-end encryption, advanced authentication protocols, and continuous monitoring is essential to ensure the resilience and trustworthiness of DPI ecosystems.

The Future of DPI: A Collaborative Path Forward

The World Bank’s Global DPI Program aims to support governments, regulators, and private sector stakeholders in developing safe and inclusive DPI ecosystems. This initiative focuses on technical assistance, knowledge-sharing, capacity-building, and cross-border interoperability to accelerate digital transformation in emerging economies. By adopting an open-source, modular, and privacy-centric approach, countries can harness the full potential of DPI while minimizing risks. Governments must prioritize digital inclusion, ensuring that no citizen is left behind in the shift toward a digitally connected world. At the same time, strong legal and governance frameworks must be continuously updated to address evolving cybersecurity threats, data privacy concerns, and regulatory gaps. As DPI continues to evolve, its success will depend on how well nations balance openness and regulation, competition and collaboration, and technological progress with human rights protections. If designed and governed effectively, DPI has the power to bridge digital divides, boost financial inclusion, and create new opportunities for governments, businesses, and individuals worldwide.