Central Bank Advancing Efforts to Modernise Barbados’ Payments System

Within another 18 to 24 months, Barbadians will be able to benefit from a modernised payments system that will make it much easier for them to transfer money and access their funds.

Word of this came from Deputy Governor of the Central Bank of Barbados, Michelle Doyle. 

She was speaking during a panel discussion entitled “Digital Transformation: Beyond the Buzz,” which formed part of the opening session of the Bank’s 44th Annual Review Seminar.

Doyle, who moderated the discussion, said modernising the country’s payments ecosystem was an interplay between technology, processes, data, and ensuring people can adapt.

 “We are looking at what type of payments system would allow us to have greater interoperability for wholesale as well as retail settlement of payments and where you have an instant payment solution.” 

Wholesale payments refer to large-value, low-volume transactions, while retail payments are lower-value, high-volume transactions, like those the average Barbadian makes daily.

The Deputy Governor pointed out that other jurisdictions were moving towards instantaneous, 24/7 settlement of payments, “not where it’s in batches or based on business days, but where you can move your funds at any point in time during the day, weekend or otherwise.”

Doyle revealed that the digitisation of cheques was also on the cards.

“That’s one area where we have to think about what would’ve pertained traditionally, given that we still have a large penetration of cheque usage, versus what may be a future solution with regard to moving our funds online,” she noted.

Doyle added that the modernisation of the payments space would eventually include open banking.

This is a system that allows banks to share customer data, with the customer’s consent, with other financial service providers through a secure interface. This sharing of data reduces the hassle associated with opening accounts and gives individuals more control over their financial information.

“We need to ensure that customers not only have access to services but they’re able to manage their data to ensure that their customer experience is much better, the Deputy Governor said.

The digitisation of cheques and the thrust towards instant settlements is part of the Bank’s broader goal of modernising Barbados’ payments system.