Assessment of Mobile Technologies for Using SNAP Benefits

Summary

In accordance with the Paperwork Reduction Act of 1995, this notice invites the general public and other public agencies to comment on this proposed information collection. This is a new collection for the contract Assessment of Mobile Technologies for Using Supplemental Nutrition Assistance Program (SNAP) Benefits (Mobile Payment Pilot evaluation). The purpose of the Mobile Payment Pilot evaluation is to assess the effects of five pilot projects that will allow SNAP participants to use mobile payments to purchase food as an alternate option to a physical electronic benefit transfer (EBT) card.

Request for Comments

Written comments must be received on or before July 31, 2023.

• Comments may be sent to: Maya Sandalow, Food and Nutrition Service, U.S. Department of Agriculture, 1320 Braddock Place, 5th floor, Alexandria, VA 22314.
• Comments may also be submitted via email to maya.sandalow@usda.gov.
• Comments will also be accepted through the Federal eRulemaking Portal. Go to http://www.regulations.gov, and follow the online instructions for submitting comments electronically.

All responses to this notice will be summarized and included in the request for Office of Management and Budget approval. All comments will be a matter of public record.

Abstract

The Supplemental Nutrition Assistance Program (SNAP) provides monthly benefits to low-income households to reduce food insecurity and improve health and well-being. Benefits are delivered via electronic benefit transfer (EBT), which is accepted at more than 250,000 authorized retailers nationwide. For nearly two decades, SNAP participants have used EBT in person at retailers, where they swipe their card at checkout using a point of sale (POS) terminal and enter their personal identification number (PIN) to pay for their purchases.

The Agricultural Act of 2018 (2018 Farm Bill) authorized the use of mobile payments from devices like cell phones, tablets, and smart watches, as an alternate option to a physical electronic benefit transfer (EBT) card to conduct a SNAP transaction. This authorization was subject to the result of five mobile payment pilot projects. Mobile payments may improve the customer experience; save participant and retailer time; reduce potential stigma of using EBT; reduce costs; and prevent benefit fraud, loss, or theft.

USDA FNS selected five state SNAP agencies to participate in the Mobile Payment Pilot: Illinois, Louisiana, Massachusetts, Missouri, and Oklahoma. These state pilots include a variety of design implementation strategies in terms of payment model, retail partnerships, marketing plans, and pilot scale. The Mobile Payment Pilot evaluation will assess the effects of the pilots, using information obtained from FNS, selected state SNAP agencies, retailers, and SNAP participants. The evaluation has four objectives: (1) assessing the implementation of the pilots, (2) examining the adoption and use of mobile technologies, (3) understanding implications for program integrity, and (4) assessing replicability and costs. In each of the five sites, the evaluation will conduct three rounds of semi-structured interviews with state SNAP agencies, EBT processors, retailers, and other partners. Interviews will occur during the pilot planning period and once the pilots are implemented, and will collect information about the pilot design and implementation.

In each of the five sites, the evaluation will also conduct two, 5-minute surveys and four focus groups among SNAP participants. One survey will be conducted among 250 participants who used mobile payments and the other will be conducted among 250 participants who did not use mobile payments. Similarly, two focus groups will be conducted with participants who used the technology and two others will be conducted with participants who did not use it.

In addition, the evaluation will collect SNAP administrative data, cost data, and retailer transaction data from the FNS ALERT and STARS systems. These data will be used to describe the adoption of mobile payment technologies and benefit redemption patterns by participant, retailer, and community characteristics.

Data collected from staff at state SNAP agencies, partners (such as EBT processors, mobile application vendors, and payment providers), and retailers will be used to describe how the pilots were planned and implemented. Data collected from SNAP participants will provide more information about their decisions to use or not use mobile payments, barriers to use, and participant satisfaction and user experience. Administrative, cost, and transaction data will provide insights on adoption and use of mobile payments. Ultimately, the findings will guide FNS in determining if expanding availability of mobile payments nationwide is cost-effective, secure, and accessible to participants.