For many municipalities, manual vendor payments are “the way things have always been done.” A paper check gets cut, an approval gets signed, a payment gets mailed and a reconciliation gets handled at month-end.

Why Government Payments Must Evolve

For decades, government agencies have relied on paper checks to disburse funds to citizens, vendors and employees. But the world has changed. Citizens pay bills online. Workers receive wages by direct deposit. Businesses manage finances through secure apps. Paper-based processes now feel outdated, inefficient and costly.

In the United States, government municipalities refer to local governments responsible for providing services and managing public affairs within a particular geographic area. The primary difference between these municipalities lies in their forms of government, powers and functions. Here are some of the most common types of government municipalities in the United States: