Payments systems bill a step in the right direction: Wale

OPPOSITION Leader Hon Matthew Wale says the Payment Systems Bill 2021 will have a positive impact on financial services in the country.

Speaking in Parliament today, Hon Wale said the Bill is long overdue and a step in the right direction as it will address a significant long term need in our financial sector.

He said financial services are a dynamic sector with fast changing technologies.

Therefore, Hon Wale said it is important that the government’s policy and law must keep up with the changes.

“The Payment Systems Bill 2021 introduces the legal framework for an electronic payment system in the country,” he said.

Hon Wale said it aims to encourage the establishment and use of electronic payment systems and securities settlement systems for a safer and more efficient settlement process reducing systemic risks, avoiding human error and delays from manual processing, which will speed up the availability of funds to beneficiaries of payments.

“A safe and efficient payment system facilitates exchange through the transfer of monetary value. Safety and efficiency of payment systems ensures that consumers enjoy timely, affordable, convenient, secure, transparent and highly available services,” he said.

The Opposition Leader said most importantly, safe and efficient payment systems support the smooth conduct of monetary policy and foster financial stability.

“So there is macro-economic benefit to having an effective and regulated payment system,” he said.

Hon Wale said the benefits of a safe and efficient payment system include a stable financial system; enables users to make real time transactions that drive the country’s economy.

He said it also offers a variety of payment options for goods and services; customer protection; final and irrevocable payments; low transaction cost where payment channels are integrated; and the convenience and safety associated with not having to carry large amounts of cash.

The Opposition Leader said the use of electronic payment systems has increased dramatically over the years throughout the world.

Increasingly, he said electronic payments would be used by a greater proportion of the populace than ever before; and as a result, there is a compelling need to ensure these systems are operated in a secure and efficient manner.

“The ability to make payments easily and safely is important in ensuring the smooth and timely flow of goods and services throughout the economy and is of particular importance in an economy that is largely cash based,” he said.

• OLO Press Release