Abstract:
Digitalisation of public services as part of ambitious national agendas aimed at enhancing public services and mobilising domestic resources. This involves transforming multiple steps of the public service delivery process to enable digital access, manage service requests and accept digital payments. But despite of digitizing the revenue collection system in public institutions there are still some challenges; such as cost of internet, infrastructure, number personnel, qualifications, complexity of the system, frequency of System attack, power backup, speed of the internet.. However, the effectiveness of the system in improving the customer service delivery to the customers is questionable. For this reason, the study assessed the effectiveness of digital government payment on service delivery in public institutions. As a case study of Arusha public institutions. The study will adopt a descriptive research design. Quantitative approaches was used to carry out the research study whereby probability sampling was employed to obtain the respondents. Primary data was obtained through a structured questionnaire from six Different public institutions at Arusha municipal while the secondary data was obtained through documentary review. Based on the data analysis and the findings supported by the related literature review and the empirical evidence concluded that digital government payment system was an effective service delivery mode at public institutions in Arusha region. Based on this premise, the institutions should be responsive to the problems and challenges on the system connected with their institutions, this will help minimize complaints and grievance by the users and customers hence effectiveness.