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Service Fees

There is a lack of information about the feasibility of service fees as a means of financing e-Government. It is uncertain whether citizens and businesses in developing countries will be willing to pay for e-Government services. Service charges raise equity, security, and privacy concerns. Even if fees are publicly acceptable, credit card use is not widespread in many LDCs, so other payment methods need to be considered.

One approach to financing e-Government may be to charge service fees for use of in-person services. This might have a dual effect, generating revenue and forcing users to migrate to free online services. Again, equity issues may weigh against establishing new fees for face-to-face services.

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