Cashless Transfers of Social Safety Net Allowance and Enhancement of Peacebuilding

ABSTRACT This article examines the sociopolitical implications of cashless government‐to‐person (G2P) transfers in Bangladesh. It focuses on their role in peacebuilding through the lens of social cohesion. Drawing on a mixed‐methods study across four major social safety net programs—Old Age Allowance, Widow/Deserted and Destitute Women Allowance, Maternity Allowance and the Hijra Community Allowance—the research compares beneficiary experiences under both cash‐based and digital modalities. Findings reveal that although digital payments improve convenience, safety and perceptions of dignity, they also generate new challenges, including digital literacy gaps, reliance on intermediaries and small‐scale rent‐seeking. Quantitative data sometimes indicate stronger performance under cash‐based systems; however, qualitative evidence highlights beneficiaries’ preference for digital transfers due to enhanced transparency and reduced risks of robbery and harassment. The study further uncovers a divergence in trust between NGOs and state institutions, suggesting that NGO‐led delivery, although effective, may inadvertently sideline state legitimacy unless better co‐managed. By situating these results within peacebuilding theory, the article argues that G2P transfers contribute to positive peace by strengthening both horizontal (community) and vertical (state–citizen) cohesion, provided implementation challenges are addressed. The findings have implications for designing inclusive digital financial ecosystems that align social protection with state legitimacy and sustaining peacebuilding.