Expenditure on Scottish Government's internally built Payment Platform: FOI release

Information requested

Could you please provide details of the costs incurred to design, develop and deploy the "Scottish Government Payment Platform" by the Digital Directorate, since its inception (which dates back to before 2019)? This expenditure should include internal resources, contractors and suppliers.

Could Scottish Government also confirm how many Public Sector bodies have now operationally adopted the solution?

Could Scottish Government also clarify why it has not adopted its own design principles of reuse (e.g., GOV.UK Pay) over buy (Stripe, WorldPay), over build (by the Digital Directorate)?

 

Response

Q. Could you please provide details of the costs incurred to design, develop and deploy the "Scottish Government Payment Platform" by the Digital Directorate, since its inception (which dates back to before 2019)? This expenditure should include internal resources, contractors and suppliers.

A. The table below details total assigned budget and costs (in financial years (FY) from April to March) incurred since the ScotPayments programme was formally established following the approval of an outline business case (OBC) in June 2019. Figures include internal and interim staff costs, and all programme and commercial expenditure from FY2019-20 onwards.

ScotPayments	Resource		Capital
	Outturn	Budget	Outturn	Budget
2018-19	180,000	-	-	-
2019-20	1,482,454	1,497,973	-	-
2020-21	811,231	1,081,983	1,569,733	1,990,000
2021-22	967,553	2,579,956	3,879,486	3,300,000
2022-23	1,044,922	1,062,734	3,684,198	3,600,000
2023-24	1,285,817	1,458,000	3,324,672	3,600,000

Note: FY 2018-19 includes commercial costs for the design and build of a payments technical prototype only. Internal staff supporting this phase were drawn from across multiple business areas of the Scottish Government with expertise in technology, commercial, and finance as well as end users in public bodies responsible for administering outbound payment processes. Staff costs were not attributed to a single initiative or programme. 

Q. Could Scottish Government also confirm how many Public Sector bodies have now operationally adopted the solution?

A. ScotPayments is currently in the private Beta phase, with the first beta partner fully transitioned onto the platform, including a new fund launched in June 2024. Feasibility assessments with three additional public bodies responsible for large volume/value outbound payments concluded in May 2024. Two new beta partners will commence onboarding to the service from September 24 to March 2025, before the programme moves into public beta phase in Spring/Summer 2025.

Note: The private beta phase refers to a stage where a limited number of users are given access to the service to test its ongoing development, functionality, usability, overall performance, and scalability. Continuous user feedback is incorporated into the ongoing evolution of the service and platform. The public beta phase refers to a stage where the service will be further opened, and public bodies across Scotland will be invited to join the adoption pipeline. 

Q. Could Scottish Government also clarify why it has not adopted its own design principles of reuse (e.g., GOV.UK Pay) over buy (Stripe, WorldPay), over build (by the Digital Directorate)? 

A. Design principles are at the heart of the Scottish Government's Payments programme, aligned with the Scottish Approach to Service Design, which adopts a user-centred approach to design and delivery. https://www.gov.scot/publications/the-scottish-approach-to-service-design/pages/aboutthis-resource/ These standards were assessed as part of the mandatory Digital Scotland Service Standards assessments carried out at key stages: end of Discovery, Alpha, and Beta phase. While building the technology has required significant investments and expertise, this approach has ensured that the technology solutions are tailored to the specific needs of public bodies across the public sector. The main reasons for choosing to build its own technology rather than reuse or buy existing solutions include:

1. Customised Solution: The ScotPayments programme aims to build a modern, secure, and centralised outbound payments platform to support the digital transformation of public services across the Scottish Public Sector. No single product or platform met the needs defined by the programme at the end of the discovery phase for outbound payments. If the ScotPayments business case is extended in future years to include inbound payments, common platforms such as Gov.UK Pay, Stripe, and Worldpay will be considered as part of any technology options appraisal.

2. Tailored to Specific Needs: Building the technology solution allowed the Scottish Government to tailor it to its specific needs and requirements. This has resulted in a more customised and efficient system that aligns closely with the objectives of the programme and business case.

3. Better Integration: Building the platform and service has facilitated better integration with existing technology and processes across the public sector in Scotland, streamlining operations and improving overall efficiency.

4. Greater Control: Building the service and platform allowed greater control over the development, implementation, and maintenance. This is particularly important for sensitive and critical government services.

5. International Research: International research conducted during the discovery phase indicated that common payment services were being developed and adopted by governments worldwide. A single way of making and taking payments reduces confusion for both government and citizens.

6. Robust Security: This approach has allowed the Scottish Government to implement robust security and data privacy measures, and protocols to protect the sensitive data and information it handles.

7. Scalability and Futureproofing: Designing and building a government grade platform service has allows for scalability and adaptability to future requirements, ensuring long-term sustainability and flexibility to accommodate changes and enhancements.

8. Cost Efficiency: Although upfront investment is required, building a government grade platform, as a shared-service will lead to notable cost efficiencies over time, reducing dependency on third-party vendors and associated recurring costs. In this case, benefit realisation will be tracked and reported over a 10-year period from onboarding.

ScotPayments is a government-grade payment platform service, and once in a live state, it becomes critical national infrastructure focussed on public sector reform, transforming the way public bodies administer outbound payments.

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