What is the difference between cash transfers and in-kind benefits?

Cash transfers are direct transfer payments of money to eligible individuals to help improve their lives. Cash transfers are usually benefits which are paid by the government to the individuals in the form of cash. Money is the medium of payment. The benefit of cash transfers is that an individual can use the cash in any way that they choose.

In-kind benefits, or in-kind transfers, are transfers of goods and services. Unlike cash transfers, in-kind benefits are not paid directly. Individuals receive goods and/or services for free or at a reduced rate. Through an in-kind benefit, the government specifies how the public assistance dollars must be used.