CPSS Releases Report on Retail Payments
In a report published today by the Committee on Payment and Settlement Systems (CPSS), central bankers analyse innovations in retail payments.
The report, Innovations in retail payments, first provides an overview of innovative retail payment activities in the CPSS and several other countries from a fact-finding exercise that attempted to cover influential developments in retail payment instruments and schemes over the past decade.
The report has been prepared for the CPSS by a working group comprising representatives of CPSS member central banks and the World Bank. The working group was chaired by Dirk Schrade of the Deutsche Bundesbank.
Second, based on the trends observed and the economics of retail payments, the report identifies a number of exogenous and endogenous factors that could serve as drivers for retail payment innovations or as barriers to them. The analysis was also used to suggest some pointers as to what can be expected over the next five years.
Finally, the report identifies a number of issues for central banks concerning their various responsibilities and tasks as catalysts, overseers and/or operators of payment systems.
Many central banks take an interest in retail payments as part of their role in maintaining the stability and efficiency of the financial system and preserving confidence in their currencies. Although most retail payment systems are not considered systemically important, their potential weaknesses with regard to security and reliability could nonetheless affect the financial system and the economy. Innovations in retail payments can therefore raise policy issues for central banks. The working group was set up by the CPSS against this background to investigate developments in retail payments, focusing especially on innovations.