Over the last decade, there have been profound changes in retail payment systems (RPS) throughout the world. Many countries have adopted “fast payments,” 24/7 payments, and other measures for greater convenience and customer satisfaction. So-called “digital wallets,” electronic money institutions, stored value cards, QR codes, and even the familiar and humble credit and debit card schemes offer customers new ways to pay and merchants, both on-line and off-line, safer and more convenient ways to collect. In many jurisdictions, customers face a dizzying array of new payment options, and those payment mechanisms that accumulate customers’ funds, even for a short time, pose issues of customer protection.
The course focuses on the current developments in RPS, instruments, and services, including adoption of advances in technology in the development of new channels for retail payment, factors influencing the adoption of specific retail payment instruments, the central bank’s critical roles in the convergence of retail payment and lending, and the potential trade-off between safety, efficiency and accessibility. The course also covers risk identification and mitigation, sound and proportionate legal and regulatory frameworks, and the mechanics of national payment switches and other forms of interoperability.
At the end of the course, participants will be able to: (1) describe the detailed operations of RPS (i.e. instruments and different roles within RPS); (2) explain the increasing importance of system interdependence and an efficient RPS infrastructure; (3) identify risks in RPS activities and determine risk mitigation tools/strategies; and (4) explain critical roles of central banks in RPS operations and optimizing the payment instrument mix.
The course is designed for staff from central banks with at least one to two years of work experience on PSS and/or risk management, or IT supervision. Participants may come from either payment system regulation or payment system operation functions. Participants should have some basic knowledge of payment and settlement concepts and operations.