Non-banks in retail payments
9 September 2014
In a report published today by the Committee on Payments and Market Infrastructures (CPMI), central bankers examine the role of non-banks in retail payment services and analyse the implications of the growing importance of these entities in retail payments.
The report, Non-banks in retail payments, is based on several fact-finding exercises that were conducted to support the analysis, revealing a significant presence of non-banks in all stages of the payment process and across different payment instruments. The report analyses the factors influencing the growing importance of non-banks, the main implications for both the efficiency of and risks in retail payment systems (including their possible influence on financial inclusion) and the diverse regulatory approaches for the different types of non-bank in various jurisdictions.
The report concludes with an analysis of the main issues and implications for central banks and other authorities. The main issues identified relate to the potential impact of non-banks on operational risk, level playing field issues, consumer protection aspects and the risks that might emerge if outsourcing of payment services is concentrated in a single or a few non-banks.
Central banks are invited to consider the challenges identified, including risk and level playing field issues, and take action as appropriate in their jurisdictions.
Notes to editors
The CPMI promotes the safety and efficiency of payment, clearing, settlement and related arrangements, thereby supporting financial stability and the wider economy. The CPMI monitors and analyses developments in these arrangements, both within and across jurisdictions. It also serves as a forum for central bank cooperation in related oversight, policy and operational matters, including the provision of central bank services. The CPMI is a global standard setter in this area. It aims at strengthening regulation, policy and practices regarding such arrangements worldwide. The CPMI secretariat is hosted by the BIS. More information about the CPMI, and all its publications, can be found on the BIS website.
The report Non-banks in retail payments has been prepared for the CPMI by a working group consisting of representatives of central banks that are CPMI members plus the World Bank.