Photo © UNDP Lebanon

Historically, payments were manually processed and prone to errors, involving downloading and uploading files multiple times, and obtaining email-based approvals.

In a significant stride toward enhancing operations, the GSSC in collaboration with BMS/OFM and the UN International Computing Centre (UNICC), implemented the Host-to-Host (H2H) payment process for UNDP.

A comprehensive data cleansing exercise with COs preceded the transition to ensure all banking details were accurate before converting to the H2H payment process.

The project began in 2023 with the launch of Quantum. In 2024, the H2H payment process was expanded to include supplier payments for 19 COs and for the automation of payroll payments for 47 COs. These COs were selected based on their capacity to adopt the new system, considering their existing infrastructure and adherence to banking standards.

The H2H process enables direct and secure electronic fund transfers between bank accounts, eliminating local payment processing and manual interventions. It connects Quantum directly to local bank servers, ensuring automatic validation and payment processing as illustrated below. The system has already significantly enhanced payment processing, security, reduced workload at CO level, automated bank reconciliation and achieved cost savings across UNDP.

After the last round of implementation, the GSSC held feedback sessions with COs, receiving overall positive responses. For example, UNDP Angola’s Finance team noted that bank reconciliation issues and processing times were significantly reduced, giving staff more time for core tasks. UNDP Madagascar CO expressed the H2H integration process was well-coordinated, and the system has performed well since its implementation.

H2H Payments will be introduced in remaining COs in 2025 to further optimize and streamline payment processes globally.