Electronic commerce is the transaction of money for government services, or vice versa, government purchasing. People can pay Federal taxes electronically and many states are following suit by beginning to accept online tax payments. Another example of e-commerce includes a consortium of New York county governments that now purchase their office supplies from an electronic catalog over the Internet and receive them the next day.

Other forms of government e-commerce underway include online auctions of surplus equipment, renewing automobile registrations, and booking sites at public campgrounds. Processing these transactions electronically may create a more efficient and cost effective method than the traditional paper processes.