City councillors voted 17-8 in support of a digital-payments and -services partnership with Missouri-based PayIt. The company will build the city’s digital payments infrastructure, replacing a suite of disparate portals and allowing residents to pay for things like property taxes, parking tickets and water bills online or via a mobile app. City staff estimates the deal will cost approximately $22 million over five years and save taxpayers about $11 million over that period. (The Logic)
Talking point: Digital rights advocates and several councillors have criticized the deal. One of their biggest concerns is the way it came about—that is, through an unsolicited proposal from PayIt last summer. Council ended up launching a “Swiss Challenge” to identify other possible bidders who might be able to offer a better solution than PayIt’s proposal. Just one other firm—SQL Power Group—submitted an RFP, but city staff decided to move forward with PayIt’s bid alone. Beyond the process, critics argued the deal would give the private U.S. company too much authority over government processes. And some councillors said it preempts the city’s Digital Infrastructure Plan, which hasn’t been finalized. Toronto will be PayIt’s first Canadian client (it works with U.S. 16 governments at local and state levels). As part of the deal, Toronto will get commission for recruiting corporations, municipalities and other public agencies to work with the company.